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
Please they have been charging me for years
I been using Turbo Tax since 2017/2018 and I just received a check in the mail today. I didnt have to do anything at all to receive it.
Please add me
I have used them the last 4 years I would like to be added
Am I supposed to receive a check for all years between 2016-2018 that I qualified for a settlement check?
I used turbo tax for most yrs from 2016 2019 how do I receive my settlement funds. Iโve just updated my information with turbo tax as it has changed over yrs?
yes add me. This was why I stopped using them.
Add me please. Iโve used them the last 6 years
I always use Turbo tax
A case needs to opened regarding technical issues that lead to, incorrect and rejected returns due to incorrect or missing data in the unediable forms and more. Especially when it comes to amendments spent months trying to correct my return did screenshares employees agreed its technical but were told to refer me to like support. I did not need to pay for live help when I needed tech support. In addition if you make any changes you can no longer access the return you filed. The are historical tax files for the years you did it like if you do an amendment it over rides the 1040 originally filed and you can no longer download your submitted return records. Then doing an amendment you better be prepared and do in one sitting, as it will save it as a new amendment and the return will rejected as none of the data in 1040x will match the original. Also if you start a return or amendment and cancel it or click to start ever it does not remove the data entered. It just repopulates it and you have to manually remove it and it can cause issues with the return. My 2020 amendment time tracking said I had spent almost 30 hours trying to fix things, multiple chats and calls also, and they are aware of the problem because its all over the support forum. I ended up having to get copies from the irs and pay to use a different service to recreat everything then amend and wasnโt able to use efile since 1040 on the recreation wasnt submitted as an efile on their site. I then had to figure out what data needed corrected for 2021 and 2022 as 2020 has carryforwards. In 2021 I clicked the small businesses package just to see things it included. The turbotax system will not return to previous package, even if you donโt need it. Spent over an hour trying to resolve this. The lady evened up giving me serveral promo codes to try and get my account back to the plan. None of these issues are disclosed
I used turbo tax for several years including years in the settlement but didnโt receive any emails or info so how do I get a check after paying hundreds in taxes each year when I qualified for free
I used turbo tax for most yrs from 2016 2019 how do I receive my settlement funds. Iโve just updated my information with turbo tax as it has changed over yrs?