How To Claim Cash in the $141M TurboTax Settlement

Intuit also used paid search advertisements to redirect consumers who were looking for the IRS Free File service to the TurboTax “freemium” product. The final output produces star ratings from poor (1 star) to excellent (5 stars). For more details about the categories considered when rating tax software and our process, read our full methodology. Free version, plus access to a tax pro, advice and a final review. We believe everyone should be able to make financial decisions with confidence.

  • For example, it must suspend a “free, free, free” advertising campaign that “lured” customers with the promise of free tax preparation but then asked them to pay, according to an announcement from New York Attorney General Letitia James.
  • Through its partnership with the federal program, called the Free File Program, Intuit allowed selected low-income people and members of the military to file their taxes through TurboTax at no charge.
  • CNET editors independently choose every product and service we cover.
  • If you haven’t received your check by mid-June, you can visit the settlement site and ask for a payment to be reissued.
  • Our aim is to provide an independent assessment of available software to help arm you with information to make sound, informed judgements on which ones will best meet your needs.
  • The main strength of TurboTax is that it’s accessible and comprehensive, meaning the process offers enough information that you don’t need to dig to find it.

“If the government is requiring me to file, they should offer a free service,” one survey respondent said. From 2016 through 2018, the company was accused of charging 4.4 million customers in all 50 states such fees, the authorities said. She has written https://turbo-tax.org/ about personal finance topics for AARP Magazine, Bankrate, Credit Karma, NextAdvisor, U.S. News & World Report, Reviewed, Credit Karma and more. When she’s not writing, you can find her training for her next race, reading, or planning her next big trip.

Free online tax filing? Forget it

Intuit also addresses Canadian tax returns with an entirely separate product also named TurboTax, but previously called QuickTax. The French version has retained its original name ImpôtRapide until 2017, when it was renamed TurboImpôt. “Paying taxes is hard enough, so people should not also have to worry about being deceived by their tax preparers,” New Hampshire Attorney General John Formella said in a statement when the settlement was first announced. Finally, explore https://turbo-tax.org/turbotax-news/ Cash App Taxes (formerly Credit Karma Tax), a tax prep service that could help you file both your federal and state taxes at no cost. Before you dive in, be sure to review the list of situations and forms that aren’t supported by the service. Intuit admitted no wrongdoing in the settlement, reached one year ago with all 50 states and Washington, D.C. The company agreed to pay restitution to roughly 4.4 million taxpayers and make changes to its advertising practices.

TurboTax News and Articles

Ms. James’s office led a multistate investigation into Intuit’s misleading advertising after reporting by ProPublica found that the company deceived customers who were eligible for free tax services and instead rerouted them to enroll in paid versions. The settlement applies to those who were eligible for Free File and started 2016, 2017 or 2018 federal returns with Intuit’s free software. If you were then told you didn’t qualify for the free software, paid Intuit to complete your return and didn’t use Intuit’s Free File product in a previous year, you may receive a payment, according to the settlement website. One survey found 72% of taxpayers would be “very interested” or “somewhat interested” in a system that allowed them to file returns directly with the government at no cost. The option was most popular with younger people, those with limited English skills and people who do their own taxes. Joe Van Brussel is a freelance writer for CNET Money, where he deciphers obfuscatory credit card offers and breaks them down so consumers actually know what belongs in their wallet.

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If you’re one of those consumers eligible for a payment, you can expect to hear from Rust Consulting, the settlement fund administrator, by email, and checks will start being sent next week. Payments will be mailed throughout May, per the settlement website. Customers do not have to pay money or provide any account information to receive their payment. Most consumers will receive between $29 and $30, the site says, although some individuals who filed for all three of the years covered by the settlement could get about $85, the New York Attorney General said. One challenge is how to integrate state tax returns, which would make a IRS-run system more attractive. The system could also be a stepping stone to having the IRS fill in parts of a tax return itself, using information from employers and other sources.

TurboTax News and Articles

First, be sure you know the difference between “support” and “defense.” With most providers, audit support (or “assistance”) typically means guidance about what to expect and how to prepare — that’s it. Audit defense, on the other hand, gets you full representation before the IRS from a tax professional. That was the finding of a multistate investigation led by Attorney General Letitia James of New York. Ms. James announced on Wednesday that Intuit, the company creating the software, would pay back $141 million to more than four million Americans who were unfairly charged for tax services that were falsely advertised as free. TurboTax owner Intuit in May 2022 agreed to pay $141 million to lower-income Americans who were “unfairly charged,” according to James, for free tax-filing software as part of a multi-state agreement. If you’re one of the millions of taxpayers who paid for TurboTax when the filing software should have been free, you may soon receive a settlement check, New York Attorney General Letitia James announced on Thursday.

Turbotax Blog integrations

“They can use tax software. They can use a trusted tax professional. They can use a paper tax return. We’d rather they file electronically, sure. But they have that choice.” Eligible TurboTax users include those who paid to file their federal tax returns in tax years 2016, 2017 and 2018, but were actually entitled to a free filing system through the IRS’ Free File program. For simple tax returns only; it allows you to file a 1040 and a state return for free, but you can’t itemize or file schedules 2 or 3 of the 1040.

  • Many or all of the products featured here are from our partners who compensate us.
  • It’s also worth noting that if you worked or lived in multiple US states in 2022, and need to file separate state tax returns, there may be better alternatives.
  • Intuit admitted no wrongdoing in the settlement, reached one year ago with all 50 states and Washington, D.C. The company agreed to pay restitution to roughly 4.4 million taxpayers and make changes to its advertising practices.
  • Blog.turbotax.intuit.com is the official blog of TurboTax, a tax preparation software product from Intuit.

Most tax situations won’t require TurboTax’s expert help upgrades. The main strength of TurboTax is that it’s accessible and comprehensive, meaning the process offers enough information that you don’t need to dig to find it. You’ll be able to answer many of your questions through its online resources. That makes the added Live assistance category, where you can ask an expert questions and have them review your return at the end, mostly unnecessary. Two additional levels of expert help are also available to add on to each tier, for a fee.

Intuit Will Refund $141 Million to Low-Income TurboTax Users

They are not designed or prepared to produce any predetermined results. The provider’s answers, combined with our specialists’ hands-on research, make up our proprietary assessment process that scores each provider’s performance. The settlement website notes that while payments are being mailed in May, some people may not receive their checks until June.

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