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
Iโve been using TurboTax for years and they always charge a fee even though they advertise itโs free for me.
I was for sure charged every yr.
Venetia Burrough I know they kept tacking on charges. Itโs ridiculous. The first year I remember it was $69 plus this and that but the next year it was increased dramatically. Why so many charges when that is what the charge was supposed to be covering for to begin their services. Itโs a shame. And I actually was taught by H&R Block on Income tax preparation and I am not a retard. If itโs all that a certified public accountant I would say would have kept up with it. I doubt any taxes that pass by you arenโt that complicated . My bill ended up being a couple hundred for what should have been 1040 short form not the EZ. The guidelines are on based on income not paperwork. The regular 1040 isnโt hard and I am pretty sure that anyone that falls into the financial guidelines isnโt going to have itemized deductions and a million different forms to attach and such for your dumb ass to deal with. Believe it or not if it wasnโt for my breast cancer I would not qualify for free nothing anyway. I barely get by because of it. You Dan Richard need to do your job and stop acting like you are working you flesh to the bones. LAZY! You merely answer questions on a program mainly and the program does all the work now a days. 30 years ago we did it all by hand and didnโt complain about the job we chose for ourselves. We knew what guidelines were in place and we abided by them. Thatโs the problem with people like you that donโt get it. It might not be a lot of money to you or some but it can mean the difference for some of us whether we have our life saving meds or food everyday to eat. Please! I myself was blind about medicare and these so called government programs. I now have to live on a mere fraction of what I did make. I donโt qualify for didley squat so if I can qualify for a break on filing my taxes because I overpaid on that little part time job I tried to work to subsidize my income from full time work while in cancer treatment that I can no longer work and have basically lost my life you are damn straight I want it. Thatโs what my taxes paid for to begin with.
I have used TurboTax for years also. How am I going to be reimbursed for any of the charges? I lived in 3 different states and my address is not the same or my bank account since last filing. I no longer work due to a medical condition. I pacifically asked why I was being charged because I knew I qualified for free filing. If I am not mistaken it was around $69 the first time they charged me just for the federal and they kept adding charges. That is if I am remembering correctly. I will have to pull out my records to be accurate about their charges.
Hello,
Iโve been using Turbo Tax for decades now and Iโve always been charged when it should have been free. Please Add
Thanks
Turbo tax charged me to file because I had a w2 an unemployment 1099
Yes I filed my taxes with TurboTax in 2017 and in 2018 I never received my refund for$740.
I was charged in those years and I have not received any information about this until now. How can I file a claim?
Please add me.
My husband filed and paid Turbo Tax all the listed years and prior.