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TurboTax settlement over ‘predatory’ marketing is official: What happens next?

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  • Staff Report 

A settlement has been reached concerning TurboTax’s “predatory and deceptive marketing,” which cost millions of dollars to New Yorkers. New York Attorney General Letitia James announced on Thursday that Intuit, TurboTax’s owner, will start issuing checks from the $141 million settlement to consumers who were misled into paying for free tax services. Over 4.4 million consumers across the country will receive checks as part of this multistate settlement, with more than $5.4 million being distributed to over 176,000 New Yorkers who were deceived into paying for their federal tax return filing.


In 2022, a $141 million multistate agreement was announced with Intuit, involving all 50 states and the District of Columbia, to address the company’s deception of millions of low-income Americans who were charged for tax services that should have been free. Eligible consumers, who used TurboTax to file their federal tax returns for tax years 2016, 2017, and 2018 and were qualified for the IRS Free File Program, will be notified by email by the settlement fund administrator, Rust Consulting. Checks will be sent automatically without the need for filing a claim, with mailing expected to begin next week.

The payout for each consumer will depend on the number of tax years they qualify for, with most consumers anticipated to receive between $29 and $30. Those who filed for three consecutive years could receive up to $85. More information about the settlement and the settlement fund can be found at AGTurboTaxSettlement.com.

In a statement, James said, “TurboTax’s predatory and deceptive marketing cheated millions of low-income Americans who were trying to fulfill their legal duties to file their taxes.” She added that this settlement aims to rectify the situation and return money to hardworking taxpayers who should not have been charged for filing their taxes. James also expressed her gratitude to fellow attorneys general for their collaboration in holding accountable companies that deceive consumers.