If you purchased TurboTax online filing products between 2016 and 2018, check your email: you may be entitled to a settlement payment.


New York Attorney General Letitia James has announced that “consumers who were misled by the owner of TurboTax, Intuit
to pay for free tax services” will begin receiving checks as part of a $141 million settlement. According to James, approximately 4.4 million consumers across the country will receive checks as part of a multi-state settlement. All 50 states and the District of Columbia have signed the agreement.


The settlement with Intuit was reached following an investigation into Intuit’s marketing, advertising, promotion and sale of certain online tax preparation products, and whether Intuit’s conduct constituted deceptive or unfair business acts or practices. that violated consumer protection laws. Intuit produces TurboTax tax filing software.

Specifically, in 2022, the Federal Trade Commission alleged that the word “free” misled consumers into thinking they could file their taxes for free with TurboTax. In fact, the FTC argued in 2022, “most taxpayers can’t use the company’s “free” service because it’s not available to millions of taxpayers, such as those who get a 1099 form to work in the informal economy, or those who earn farm income.” The FTC found that, in 2020, about two-thirds of taxpayers could not use the free TurboTax product.

to sense returned firecalling the FTC’s arguments “simply not credible.”

Intuit also noted at the time that it “has always supported consumers who file for free as a founding member of the IRS Free File program and in our other practices.” intuit too Announced that as of the 2022 filing season, he was opting out of Free File.

TO settlement the indictments were reached in May 2022. Payments related to the settlement are now being paid. As a result, James said, “TurboTax’s predatory and deceptive marketing misled millions of low-income Americans who were trying to meet their legal tax filing obligations.” She continued: “Today we are righting that mistake and putting money back in the pockets of hard-working taxpayers who never should have paid to file their taxes. I thank my fellow attorneys general for partnering in this effort to defend ordinary Americans and hold accountable companies that mislead consumers.”

who benefits

The settlement is intended to benefit those who paid to file their federal tax returns through TurboTax for tax years 2016, 2017 and 2018, but were eligible to file for free through the IRS Free File Program; that’s about 4.4 million consumers nationwide. According to the Attorney General, consumers eligible for the payment will be notified via email by the administrator of the settlement fund, Rust Consulting.

When to expect a check

Consumers who are eligible to receive a payment will automatically receive a check in the mail. There is no need to file a claim. Checks are expected to be mailed during May 2023.

How much does it cost?

The amount you could receive is based on the number of tax years for which you qualify. Most consumers will receive between $29 and $30. If you applied for three consecutive years, you could receive up to $85.

More information

Intuit did not immediately respond to a request for comment.

For more information about the settlement, visit www.AGTurboTaxSettlement.com, a site run by Rust Consulting, the administrator of the settlement fund. Please do not contact Intuit directly about the deal.

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