Intuit $141M settlement overview:
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Who: Intuit agreed to pay $141 million to resolve claims from a coalition of state attorneys general.
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What: The state attorneys general claim that Intuit unlawfully charged some consumers to file their federal taxes when, based on their income, they were eligible to file for free through the IRSโ Free File Program.
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Where: TurboTax customers around the country are eligible for the settlement.
UPDATE:
- This class action settlement is paying out up to $29.30.
- Congratulations to everyone who filed a claim and got paid!
Intuit agreed to a $141 million settlement with a coalition of state attorneys general to resolve claims it charged TurboTax customers for services that should have been free.
The settlement benefits consumers who paid Intuit to file their federal tax returns through TurboTax for the 2016, 2017 and/or 2018 tax years, but who should have been allowed to file their taxes for free through the IRSโ Free File Program. Around 4.4 million consumers across the country are eligible for relief under this settlement.
New York Attorney General Letitia James partnered with several other state attorneys general to investigate Intuitโs โfreeโ TurboTax marketing. According to state authorities, Intuit deceived consumers into thinking they could file their federal taxes for free. In reality, TurboTax allegedly charged for filing their taxes โ even when customers qualified for the IRSโ Free File Program.ย
The IRS Free File Program allows consumers to file their federal taxes for free if their annual gross income is less than $73,000.
The $141 million settlement resolves the tax fee allegations and includes all 50 states and the District of Columbia.
โToday, every state in the nation is holding Intuit accountable for scamming millions of taxpayers, and weโre putting millions of dollars back into the pockets of impacted Americans,โ James told CBS.
Under the terms of the settlement, eligible consumers can receive a cash payment based on the number of tax years they qualified for the IRSโ Free File Program but paid to file their taxes through TurboTax. According to the settlement website, individuals are expected to receive between $29 and $30 in payments.
No action is required to benefit from the settlement. Eligible consumers who were notified of the settlement via email will automatically receive a payment without needing to submit a claim, pay money or provide account information.ย
In addition to providing payments to affected consumers, Intuit agreed to suspend TurboTaxโs โfree, free, freeโ advertisements.
The Federal Trade Commission (FTC) also took legal action against Intuit, seeking a temporary injunction to block the company from advertising its filing services as โfree.โ The FTC argued that, without an injunction, Intuit would โbe free to continue disseminating the deceptive claim that consumers can file their taxes for free using TurboTax when, in truth, in numerous instances, [Intuit] does not permit consumers to file their taxes for free using TurboTax.โย
The injunctive relief provided from the settlement serves the same purpose as the FTCโs proposed injunction by ensuring that consumers are not misled by deceptive advertisements.
Were you charged for using TurboTax when you qualified to file for free? Let us know in the comments below.
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440 thoughts onIntuit agrees to $141M settlement over allegations it improperly charged certain consumers for TurboTax
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I have used TurboTax for many years, including the years involved in this class action lawsuit. I was not any where close to the threshold but I have always been charged and paid for TurboTax.
I was charged when I filed my taxes and I was definitely not even close to the amount where I should have been charged I should definitely have been free status
I did not receive a notice, but I have paid every year and I know our income was under the amout listed
Charged every year I ever used turbotax
I was charged every year when it should have been free as I fall way under the wage bracket. Please add me to get my settlement funds
Years and years. Even after a divorce and retirement and virtually no income,,,still had to pay. PLEASE ADD ME!!!
I had my taxes done by them for years now . Thereโs always something not right after all said and done. Add me.
Me and my mother have filed every year with turbo tax since 2015! And we both should have qualified for the free tax filing. But every year TurboTax has charged both me and my mother over $100 each which TurboTax takes out of our tax refunds! I definitely want to be kept up to date on this matter. Please contact me to include me in this. Thank you
Add me please
Add please