TurboTax from Intuit has agreed to pay out $141 million to millions of customers who used the ‘free’ filing service, yet ended up having to pay for the service. The settlement affects 4.4 million customers who should receive about $30 per year filed.
The agreement revolves around the claim that TurboTax was misleading in advertising their product as free, and then upcharging for more complicated returns. Many low-income taxpayers could have filed free with the IRS free filing tool, yet were not free under the TurboTax limitations to their free filing program.
TurboTax has agreed to better inform customers on whether they’ll get the free filing, along with other changes.
Customers who could have filed free with the IRS filing program – but were not free with the TurboTax free program – are the ones eligible for payment under this agreement. You’ll get a check in the mail for the agreed-upon amount. This is not a class lawsuit and you don’t need to file anything in order to get the check, it’ll come automatically.