TurboTax customers will soon get payouts

Intuit is getting ready to pay out a $141 million settlement to compensate TurboTax customers who paid for prep services that should have been free.

The settlement, which was announced last May, applies to certain consumers who paid Intuit to file their federal returns through TurboTax for tax years 2016, 2017 and 2018 but were eligible to file for free through the IRS Free File Program. A coalition of state attorneys general said that some 4.4 million consumers nationwide will receive a payment of $29 or $30 in most cases. Checks will be mailed throughout May.

The Intuit TurboTax application
Andrew Harrer/Bloomberg

"TurboTax's predatory and deceptive marketing cheated millions of low-income Americans who were trying to fulfill their legal duties to file their taxes," said New York Attorney General Letitia James in a statement.

News reports of this month's payout said James began investigating Intuit after a 2019 ProPublica report that found the company was using deceptive tactics to steer low-income tax filers away from the free federal services they qualified for and toward its own commercial products instead.

Intuit offered no comment on the imminent payments, other than to refer to its 2022 statement following the settlement that said it was pleased to have reached a resolution.

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