TurboTax to send checks for taxpayers who could have filed for free

DORAL, FL – TurboTax announced it will be sending $141 million to taxpayers. The settlement is aimed at the millions of Americans that were charged for tax preparation when they shouldn’t have.  

Checks will be sent to those who filed returns for tax years 2016, 2017 and 2018 and were eligible to use TurboTax’s IRS Free File program but ended up in a paid service. Payments will begin to circulate next week.

The decision came after a 2022 settlement over online ads that sent customers to TurboTax’s paid service by mistake. 

According to CBS News, New York Attorney General Letitia James said TurboTax owner Intuit will make payments between $29 to $85 to more than four million people. 

Affected customers will automatically receive a direct payment of roughly $30 for each year that they paid for tax filing services that were promoted as free.

“TurboTax’s predatory and deceptive marketing cheated millions of low-income Americans who were trying to fulfill their legal duties to file their taxes,” James said in a statement. 

“Today we are righting that wrong and putting money back into the pockets of hardworking taxpayers who should have never paid to file their taxes,” she said. “I thank my fellow attorneys general for their partnership in this effort to stand up for ordinary Americans and hold companies who cheat consumers accountable.”

Intuit agreed to make the payout a year ago after a multi-state investigation led by the New York Attorney General’s Office in which it was determined the company deceived consumers by advertising free services that ended up not being free to everyone. Intuit did not admit to any wrongdoing as part of the settlement.

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