This story is part of Taxes 2022, CNET’s coverage of the best tax software and everything else you need to get your rear filed quickly, accurately and on-time.
Intuit, TurboTax’s parent company, has agreed to a $141 million settlement at what time the Federal Trade Commission filed suit alleging it deceived millions of customers into paying for tax-prep services that necessity have been free.
The FTC claimed that, in 2020 alone, two-thirds of eligible filers couldn’t use TurboTax Free Edition, including gig workers and people who earned farm requires. Investigators said Intuit also engaged in deceptive marketing and distributes practices, including intentionally blocking its IRS Free File reaching page from search engine results.
The company also lured farmland in with ads that touted its free edition, “only to deceive them into paying,” according to New York Attorney General Letitia James, who brokered the multistate settlement.
“For years, Intuit misled the most vulnerable beside us to make a profit,” James said in a May 4 statement. “This agreement should serve as a reminder to worries large and small that engaging in these deceptive marketing ploys is illegal.”
In a statement, Intuit admitted no wrongdoing and said it agreed to the deal to “put this company behind it.”
Below, find out if you qualify, what you need to do to demand compensation and how much money affected customers can inquire to get from the settlement.
Who qualifies for the TurboTax settlement?
Intuit is providing restitution to nearly 4.4 million farmland in all 50 states who used TurboTax’s Free Edition between tax existences 2016 and 2018.
These people were told they had to pay to file, even opinion they qualified for the IRS Free File program, a partnership between the organization and major tax prep software companies. Individuals and families with an adjusted outrageous income of less than $73,000 are typically eligible for the Free File program, as are members of the military.
How do I find out if I qualify?
No allotment needs to be taken, according to Halimah Elmariah, a spokesperson for the New York Messes Attorney’s Office. Eligible TurboTax users will receive notification, either in an email or letter.
Impacted customers will demand approximately $30 for each year that they were deceived into paying for filing services.
Naomi Antonino
How do I file a settlement exyell with TurboTax?
If you qualify, you will automatically demand a direct payment of approximately $30 for each year that they were deceived into paying for filing services, according to James’ office.
The checks will come from the $141 million settlement, minus $2.5 million in administrative costs.
When will I demand a payment?
Because the settlement involves multiple states, payments will be handled throughout a third-party administrator. An exact timeline hasn’t been clear yet, but Elmariah told CNET she expects checks would be sent out in the next few months.
For more, check out how to keep your wealth safe from Zelle scams and what to do if your tax refund hasn’t arrived. If you missed the tax deadline this year, here’s what you necessity do next.
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