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
I have had turbo tax the last 10 years and meet the free filing requirements. Add me please
Include me also Iโve used this tax service for at lease 10 years and always had to pay.
Please add me. Iโve used TurboTax for several years & knew something was wrong when I paid fees for TurboTaxโs free edition software.
Add me
Add me . I used turbo tax for over 7 years and was suppose to file free and it never ever gave me the option to file free
I did all three years also.
AgreedโฆI never got no settlement form to sign. Been getting charged for a while now & before doing Turbo TaxโฆHR Block pulled the same shenanigans.
Itโs not just Turbo tax HR Block does same thingโฆ Used both different years they both said free an you end up paying alot of $$$ to file.
I filed all three years please add
Raggedy b*****s made me pay up front to file my taxes early in 2021 & then also took another filing fee out of my actual income tax. Pretty sure they stole about 2k of my federal return for 2022 also
Used it for years all ways wondered why we were charged.
Thank you
Iโve used Turbo tax for years and always got charged. It says file for free but at the end you pay over $200 in fees.
I filed with turbo tax for 3 years include me please
Iโve filed with them all them years plusโฆ..got my check 2 days ago for $28 and dome change lol if u have to file and fill out paperwork, totally not worth the hassel