Another settlement is in the works—and it’s payout time! If you paid TurboTax for Federal tax prep in Tax Years 2016, 2017, or 2018 (meaning, you probably filed in 2017, 2018, and 2019) you might be eligible for a cash settlement! Read below for details!
What Happened at TurboTax?
In 2019, an article by ProPublica was released accusing the company Intuit, who owns TurboTax, of misleading and charging tax filers in Tax Years 2016, 2017, 2018 after advertising it was free for them to file. The Federal Trade Commission (FTC) launched a lawsuit against Intuit, saying that their use of the word “free” over and over again in their marketing misled consumers who were then charged to file. These customers had the right to file for free, given IRS free-file guidelines, which are based on income. As of Tax Year 2022, Intuit has since opted out of supporting any free filings. The company has admitted no wrong-doing.
In May of 2022, TurboTax announced a $141M settlement. By end of May this year, 4.4M customers are expected to receive a payout of $29 or $30 each, or as much as $85 if they were affected all three years.
What do I have to do to Receive a Payment?
Unlike most settlements, you do not have to sign up to receive a payout, or even provide any account information. If you are eligible, the third-party settlement administrator, called “Rust”, will contact you during the month of May via email and a paper check will be sent.
What’s Next?
Be aware that you might be eligible to file your taxes for free! Also, note the amount of time it takes for these settlements to work themselves out. In this case it was 4 years between complaint and payments!
For Additional info on the TurboTax settlement, click here.
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