TurboTax Sending Out Checks to Users as Part of $141 Million Settlement For Falsely Advertising Free Tax Services

Millions of TurboTax users are entitled to automatic compensation as part of a massive settlement.

Over four million Americans should check their mailboxes in the near future for a check from the tax filing company. According to a press release from New York Attorney General Letitia James, TurboTax must dish out $141 million to customers who were “tricked” into paying for Intuit, which was marketed as a free service from 2016 to 2018.

“Today, every state in the nation is holding Intuit accountable for scamming millions of taxpayers, and we’re putting millions of dollars back into the pockets of impacted Americans,” James added in the statement.

The AG began investigating the company in 2019 after a report published by ProPublica called out TurboTax for preying on its low-income consumers by steering them away from federally granted free tax services. Instead, they pushed their services that falsely promised free tax preparation. Under the settlement, Intuit must also suspend its “free, free, free” campaign.

As with most settlements, those eligible for the payout will not need to fill out any form. They’ll be mailed checks using the tax information provided to TurboTax. Customers will receive roughly $30, but those who used the service for three years can expect around $85. Anyone to receive the money must also be customers who started their tax filing using TurboTax Free Edition Product but were told they didn’t qualify for the free version, pushing them to Intuit. Anyone who used the IRS Free File is also ineligible.

Checks will be sent out beginning this month.