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
What if I never received the email on the claim, but was charged for many years. What can I do to receive the claim
Filed and paid all 3 years
I was charged this year 2023 for filling my boyfriendd taxes and I paid what he owed through turbo tax and it was to be free but they charged me a $143 .99 plus $17 .38 one filling fee and one service fee this was in April this year am I eligible to do this
When are people going to learn how to read the fine print, TurboTax has always been free if you have a simple 1040EZ which is just a W-2! when you start adding more forms and itemized expenses and deductions it charges you extra because itโs more paperwork to file. I canโt wait till all you ret@rds start using the IRS to file and stop getting fat refund checks and you realize that TurboTax always paid for itself.
They have been charging me since 2018 when it should have been free
TurboTax has always advertised itโs been free with a simple return just involving a W-2 when you start adding forms the software charges you extra because itโs more paperwork. People like you are going to sue TurboTax out of business and are only choices are going to be filing directly through the IRS are paying a ridiculous amount of money for an accountant. This will negate the option for individuals to work on their taxes and maximize their deductions and expenses. TurboTax is getting sued because people like you are too stupid to read the fine print not because they lied on their advertising.
I field 2016 -2021 for free turbo tax. I was charged for all years I file for turbo tax. I even brought turbo tax software. Return to them and have not received my refund as of today.
Please add me
I used TurboTax in 2020 they charged me and were advertising as free also. I qualify to file free still paid please add me
Made just over 20000 last year & had a return of $24 coming. Still wanted to charge me 29.99 to file
Please add me.
TurboTax charges close to $300 to use their service this year or they wouldnโt file my taxes and when I did I had to do a man text cuz they screwed me around the first time I work too hard for my money TurboTax I donโt know if itโs the IRS or TurboTax theyโre all the same thing to me