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.
Capital One Venture X Business earns 2X miles on everyday purchases plus up to 10X in bonus categories. You also get access to Capital One lounges plus an annual travel credit & anniversary bonus. Right now you earn bonus_miles_full.
Opinions, reviews, analyses & recommendations are the author’s alone, and have not been reviewed, endorsed or approved by any of these entities.