TurboTax’s $141 Million Settlement: Who Is Eligible to Claim Money and Why


This tale is a part of Taxes 2022, unitechradar’s protection of the most productive tax tool and the whole thing else you want to get your go back filed temporarily, correctly and on-time.

TurboTax’s mother or father corporate, Intuit, has agreed to pay out $141 million in reimbursement after the Federal Trade Commission filed swimsuit alleging hundreds of thousands of shoppers have been deceived into paying for tax-prep products and services that are meant to’ve been loose. 

The FTC alleges that, in 2020 by myself, two-thirds of eligible filers could not use TurboTax Free Edition, together with gig employees and those who earned farm source of revenue. Investigators stated Intuit additionally engaged in misleading advertising and marketing and industry practices, together with deliberately blocking off its IRS Free File touchdown web page from seek engine effects.

The corporate additionally lured folks in with advertisements that touted its loose version, “best to misinform them into paying,” in keeping with New York Attorney General Letitia James, who brokered the multistate agreement.

“For years, Intuit misled essentially the most susceptible amongst us to make a benefit,” James stated in a May 4 commentary. “This settlement must function a reminder to corporations massive and small that enticing in those misleading advertising and marketing ploys is illegitimate.”

In a commentary, Intuit admitted no wrongdoing and stated it agreed to the deal to “put this subject in the back of it.”

Below, learn how a lot affected shoppers can be expecting to get from the agreement, and whether or not you qualify.

Who qualifies for the TurboTax agreement?

Intuit is offering restitution to almost 4.4 million folks in all 50 states who used TurboTax’s Free Edition between tax years 2016 and 2018. 

These folks have been informed they needed to pay to report, although they certified for the IRS Free File program, a partnership between the company and main tax prep tool corporations. Individuals and households with an adjusted gross source of revenue of lower than $73,000 are in most cases eligible for the Free File program, as are individuals of the army. 

How do I to find out if I qualify?

No motion must be taken, in keeping with Halimah Elmariah, a spokesperson for the New York State Attorney’s Office. Eligible TurboTax customers will obtain notification, both in an electronic mail or letter. 


Impacted shoppers will obtain roughly $30 for every yr that they have been deceived into paying for submitting products and services.

Naomi Antonino/unitechradar

How do I report a agreement declare with TurboTax?

If you qualify, you are going to routinely obtain an immediate fee of roughly $30 for every yr that they have been deceived into paying for submitting products and services, in keeping with James’ workplace.

The exams will come from the $141 million agreement, minus $2.5 million in administrative prices. 

When will I obtain a fee?

Because the agreement comes to more than one states, bills might be treated thru a third-party administrator. An actual timeline hasn’t been made up our minds but, however Elmariah informed unitechradar she expects exams could be despatched out in the following couple of months.

For extra, take a look at learn how to stay your cash protected from Zelle scams and what to do in case your tax refund hasn’t arrived. If you ignored the tax closing date this yr, here is what you must do subsequent



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