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TurboTax Settlement Rebates Start Going Out Next Week

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TurboTax Has To Refund Customers $141M After Settlement

Update: Roughly 4.4 million people will soon receive checks from TurboTax, following a 50-state settlement with parent company Intuit for allegedly steering millions of low-income Americans away from free tax-filing services.

Consumers who are eligible for a payment will be notified by email by the settlement fund administrator, Rust Consulting. These consumers will receive a check in the mail automatically, without filing a claim. Checks are expected to be mailed out starting next week.

The amount each consumer receives will be based on the number of tax years for which they qualify. Most consumers are expected to receive between $29 and $30. Individuals who filed for three consecutive years could get up to $85. Find more details here.


The parent company of TurboTax, Intuit, has agreed to pay some users $141 million after reaching a settlement with all 50 states. TurboTax was allegedly steering millions of low-income Americans away from free tax filing services.

At the announcement of the settlement the New York Attorney General Letitia James said 4.4 million customers were unfairly charged. The AG stated that Intuit must also suspend its “free, free, free” ad campaign because it falsely lured customers with the promise of free tax preparation services.

A part of the settlement was that Intuit had to admit no wrong doing. They have said that they don’t expect the required changes to impact their business much at all.

The way TurboTax was allegedly doing this was by burying federally supported tax filing products in searches and making them difficult to find. They would instead steer customers towards their paid services. A tactic that affected low income consumers the most.

Filers who used TurboTax’s Free Edition for tax years 2016 through 2018 will be mailed a check for approximately $30 for each year they were charged when they should have been able to use free services.
Source: CNN Business
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Mark Ostermann
Mark Ostermann
Mark Ostermann is a father, husband and miles/points fanatic. He left the corporate world after starting a family in order to be a stay at home dad. Mark is constantly looking at ways to save money and stay within budget while also taking awesome vacations with his family. When he isn't caring for his family or taking a weekend trip, Mark is working towards his goal of visiting every Major League Baseball ballpark.

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