TurboTax Users May Receive Settlement Money From Intuit In 2023. How To Do It?

(CTN News) – Intuit’s TurboTax software users could receive up to $85 in compensation as part of a 50-state settlement over alleged tactics used by the software maker to trick consumers into paying for tax services.

According to a statement released by New York Attorney General Letitia James on Thursday, Intuit must suspend its “free, free, free” advertising campaign that promised free tax preparation, but actually charged consumers.

In addition to residents in Washington, D.C., the settlement amounts to $141 million. According to a 2019 ProPublica report, Intuit used deceptive tactics to steer low-income tax filers away from federally funded free services that they qualified for and into a product that charged a fee for filing taxes.

According to James, every state is holding Intuit accountable for defrauding millions of taxpayers, and we are reimbursing millions of dollars to the impacted taxpayers.

As Intuit stated in an emailed statement to CBS MoneyWatch, it is pleased to have reached a resolution with the state attorneys general that will enable it to focus on providing vital services to American taxpayers.

The settlement can be summarized as follows.

How much money is available as a result of the TurboTax settlement?

4.4 million consumers across the country are eligible for the payment, according to the statement.

The payment is available to TurboTax customers who used the product during the 2016 tax year, 2017 tax year, or 2018 tax year, as well as users of Intuit IRS Free File.

A customer must have begun their tax returns using a TurboTax Free Edition Product, but then been informed that they were ineligible to use that product, and thus paid for a TurboTax product. An IRS Free File Product must also not have been used in a previous tax year.

For the 2016 tax year, IRS Free File was available to taxpayers who made less than $64,000.

Checks for TurboTax settlements

In accordance with the settlement website, you don’t need to take any action.

The settlement fund administrator should send you an email informing you of the approximate amount of your payment if you are eligible.

Throughout May, the site says, payments will be mailed.

What is the amount of the TurboTax settlement check?

In order to qualify for the rebate, a consumer must have used TurboTax for a certain number of years.

Consumers who filed for all three of the years covered by the settlement will receive between $29 and $30, according to the site.

What was the reason for TurboTax’s settlement?

According to a statement released by the New York AG, Intuit engaged in “several deceptive and unfair trade practices that limited consumers’ participation in the IRS Free File Program.”

The investigation found that Intuit used similar names for its commercial “freemium” product and the IRS Free File service, and it blocked its IRS Free File landing page from search engine results in 2019. According to the statement, this effectively restricted access to free file users.

IRS figures show that less than 3% of taxpayers used Free File in the 2020 tax year, which is a partnership between the IRS and commercial tax preparation companies.

The IRS Free File program was discontinued by Intuit in July 2021.

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