TurboTax owner to pay for charging to file taxes

Cris Collingwood//May 4, 2023

TurboTax owner to pay for charging to file taxes

Cris Collingwood//May 4, 2023

Consumers who were misled by TurboTax’s owner, Intuit, into paying for free tax service should soon be reimbursed. 

State Attorney General Michelle Henry Thursday said the reimbursement will come from a $141 million multistate settlement of which Pennsylvania will receive more than $4.76 million. 

Henry said 158,779 Pennsylvania consumers are among the approximately 4.4 million consumers nationwide who should receive checks in the mail as the result of the multistate settlement.   

Eligible consumers will be contacted by email about the settlement, and checks are expected to be mailed in May. 

 “By requiring consumers to pay for tax-return services that should have been available for free, Intuit cheated taxpayers out of their hard earned money,” Henry said. “Intuit’s deceptive practices and aggressive advertising campaign were unnecessary and illegal; especially when the IRS offers free tax-return services for eligible consumers.” 

 In 2022, Attorneys General from Pennsylvania, Tennessee, Florida, Illinois, New Jersey, North Carolina, New York, Texas, and Washington, announced a $141 million multistate agreement with Intuit for deceiving millions of low-income Americans into paying for tax services that should have been free. All 50 states and the District of Columbia have signed onto the agreement. 

 Eligible consumers include those who paid to file their federal tax returns through TurboTax for tax years 2016, 2017, and 2018 — but were eligible to file for free through the IRS Free File Program. Consumers will receive a check in the mail automatically, without filing a claim, Henry’s office said. 

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. 

For more information about who is covered by the settlement, and information about the settlement fund, visit www.AGTurboTaxSettlement.com.