Intuit Filers to Receive $141 Million in Settlement Over Unfair TurboTax Charges

Sharee B.

Intuit, the company that owns and oversees the extremely popular tax filing software TurboTax will be giving millions of customers their money back after a court ruling over unfair charges.

The company,which advertises free income tax preparation for low-income customers,or those who make under a certain dollar amount annually, will have to pay $141 million dollars in refundable fees to an average of 4.4 million customers who used their services over the past couple of years.

According to the New York State Attorney General's Office, the agreement,which was signed by AG's of all 50 states, the company will repay any taxpayers who used the service under the guise of it being a free filing, as well as shelve it's free ad campaign.

Previously, Intuit was involved in the Free File Program issued by the Internal Revenue Service to help low-income customers afford to file their taxes each year. However, in 2021 the company stopped offering those services.

Filers affected by the settlement have met at least some of the following criteria:

  • Had incomes around $34,000 per year
  • Been a current or prior military member
  • Used the TurboTax Free Edition between 2016 and 2018 (but required to pay for services)

"As part of the agreement, Intuit admitted no wrongdoing, agreed to pay $141 million to put this matter behind it, and made certain commitments regarding its advertising practices," - Intuit representatives

The company has been ordered to immediately send out checks via mail that equate to $30 for each year that the customer was mislead by their software when they were seeking a free tax filing. Taxpayers should expect to receive those payments in the upcoming months.

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