Introducing the latest update on the TurboTax settlement: New York Attorney General Letitia James has recently revealed that the distribution of funds has commenced. This comes after a $141 million settlement was reached in May 2022 between the Attorney General’s office and Intuit Inc., the owner of TurboTax. The purpose of this settlement is to compensate customers who paid for tax preparation services that should have been provided free of charge.
Attorney General James expressed her concerns regarding TurboTax’s deceptive marketing practices, which took advantage of millions of low-income Americans striving to fulfill their tax obligations. In an official statement released on Thursday, May 4th, she emphasized the significance of rectifying this injustice and returning money to hardworking taxpayers who should never have been charged for filing their taxes. Furthermore, she extended her gratitude to her fellow attorneys general for their collaborative efforts in holding companies accountable for their unfair treatment of consumers.
If you used TurboTax to file your federal tax returns for the years 2016, 2017, or 2018, and you were eligible to file for free through the IRS Free File Program, you may be entitled to receive a payment from Intuit. To determine your eligibility, keep an eye on your email inbox for a notification from Rust Consulting, the settlement fund administrator. If you receive an email confirming your eligibility, there’s no need to file a separate claim. Rest assured that a check will be automatically mailed to you.
An important update from the Intuit multi-state settlement website reveals that the distribution of checks will begin in the week of May 7th and continue throughout May.
The amount of money that eligible consumers will receive depends on the number of tax years for which they qualify. The Attorney General’s office has stated that most consumers can expect to receive approximately $29 to $30. However, if you utilized TurboTax for all three years in question, you may receive up to $85. It is estimated that approximately 4.4 million consumers nationwide will receive checks during this month.
As someone who has relied on TurboTax for filing taxes since completing college and entering the workforce, I understand the frustration of realizing the potential savings if I had known about free tax services. This news has shed light on the importance of such alternatives. Nevertheless, it remains to be seen if the government will simplify the federal tax code to alleviate the annual stress associated with tax filing. Although I remain hopeful, I understand that significant changes may not be imminent.