Does Turbotax Give You All Your Money

The $141 million settlement deal between Intuit, the maker of TurboTax tax-filing software, and all 50 country attorneys general means that some four meg affected taxpayers who were deceived by misleading promises of free tax-filing services will be compensated.

Intuit will pay upwards to $90 to Americans who paid to file their taxes with TurboTax from 2016 to 2018 when they should accept been eligible to do then for free through the IRS's Free File program.

As part of that program, taxpayers who earned less than $34,000 for the 2018 tax year would have qualified for the gratis service.

Details on how and when the money will exist distributed have non all the same been released. According to the terms of the settlement, eligible filers will receive notices by email and regular post with more data.

The settlement was the issue of an investigation stemming from a 2019 ProPublic report that alleged Intuit steered lower-income consumers abroad from tax services that were available for gratuitous through federal support and toward commercial products.

That report, titled "Inside TurboTax'south 20-Year Fight to Stop Americans From Filing Their Taxes for Costless," said Intuit had come to an understanding with the federal government in which the company agreed to provide costless tax filing services for millions of eligible Americans, as long as the IRS did not create its own arrangement for doing and then.

But even as it launched its ain ostensibly free filing program, Intuit took measures to lure customers into "traps" that caused them to pay, ProPublica'due south report alleges. The news outlet said it had uncovered internal documents that showed Intuit knew it was misleading customers to assume they would not have to pay for sure services.

"Frequently 'free' didn't mean free at all," ProPublica reported. "Many who started in TurboTax Free Edition found that if their return required certain commonplace revenue enhancement forms, they would have to upgrade to a paid edition in order to file."

"In that location'south a lot of agony — people will agree, will click, will do annihilation to file," one erstwhile longtime software programmer told ProPublica.

"Intuit cheated millions of low-income Americans out of costless tax filing services they were entitled to," said New York Attorney General Letitia James in a statement. "For years, Intuit misled the most vulnerable among us to make a profit. Today, every state in the nation is holding Intuit answerable for scamming millions of taxpayers, and we're putting millions of dollars back into the pockets of impacted Americans."

Intuit denied whatsoever wrongdoing in a argument coinciding with Wed'south settlement announcement.

"Intuit is pleased to have reached a resolution with the state attorneys general that will ensure the company can return our focus to providing vital services to American taxpayers today and in the future," said Kerry McLean, Intuit's executive vice president and full general counsel. "Intuit is clear and fair with its customers, including with the nearly 100 meg Americans who filed their taxes gratuitous of accuse with our products over the final 8 years — more than all other tax prep software companies combined."

Intuit'due south stock has plunged aslope other big tech names during the first part of 2022. Year-to-appointment, the company has lost 35 percent of its value, with shares now trading at about $410.