TurboTax customers signed up for their service with the idea that they’d be getting free tax-preparation services. They didn’t, and now TurboTax has to pay up.
The attorneys general of all 50 states announced on May 4, 2022, that they’ve settled the lawsuit with TurboTax, and now TurboTax has to pay $141 million.
How much do you get, and how do you get it? Here’s what you need to know.
If you earned less than $34,000, you might be eligible for a TurboTax settlement.
The 4.4 million taxpayers who will split the settlement money are lower-income earners who were eligible for TurboTax Free Edition but were told they had to pay to file instead.
TurboTax Free Edition was offered as part of the IRS’s Free File program, which offers free guided tax preparation for taxpayers who earn roughly $34,000 and members of the military.
Eligible taxpayers will get up to $90.
The settlement awards taxpayers who filed during the 2016, 2017 and 2018 tax years. Eligible customers will receive about $30 for every year they filed between 2016 and 2018 — up to about $90.
You don’t have to do anything to request the payout — it’ll come automatically.
TurboTax knows which customers are included in the settlement group, and those customers will receive notices and checks by mail — to the addresses they associated with their TurboTax accounts.
There’s no telling exactly when the payments will go out, but that information will be sent in the first letter to the affected customers.