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TurboTax: Intuit Inc forced to make payments to customers over misleading tax service

Intuit Inc. will have to pay more than $141 million after settling a lawsuit with the New York State Attorney General’s office.

intuit inc turbo tax settelement

The suit is over TurboTax and its ongoing practice of deceiving millions of low-income Americans into paying for tax services that should have been provided for free.

According to the settlement, 4.4 million Americans will receive $141 million in total.

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What did Intuit do wrong with TurboTax?

Officials say consumers were told they had to pay to file income tax returns even though they were eligible to file for free.

The IRS Free File program exists for low-income Americans to file taxes without incurring costs.

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How much money will consumers get back?

Intuit Inc. will be forced to make $30 payments to all customers who filed and should’ve been eligible for the free program.

Around 176,000 New Yorkers were misled by Intuit TurboTax, according to the AG’s office.

Checks will be mailed to those who made less than $34,000 in the years they filed using TurboTax.

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what does Intuit say they will do differently now?

The company says they will refrain from making Tmisreprenatations in connection with promoting or offering online tax prep products.

Marketing and advertising materials will have enhanced disclosures, according to the company.

This includes making the free product more prominently available.

The company says products will also better inform users that they are eligible to file taxes for free if they make under $34,000.

In July 2021 the company withdrew from the IRS Free File program.

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