Consumer Alert:
CONSUMER ALERT: Attorney General James Distributes $141 Million Settlement to Millions of Low-Income Americans Deceived by TurboTax Owner Intuit

NEW YORK – New York Attorney General Letitia James today announced that consumers who were tricked by TurboTax’s owner Intuit into paying for free tax services will begin receiving checks from the $141 million settlement. Approximately 4.4 million consumers nationwide will receive checks in the mail from the multistate settlement led by Attorney General James. New York will receive more than $5.4 million for more than 176,000 New Yorkers who were tricked into paying to file their federal tax return. Eligible consumers will be contacted by email about the settlement. Checks will be mailed throughout May 2023.

“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 Attorney General James. “Today we are righting that wrong and putting money back into the pockets of hardworking taxpayers who should have never paid to file their taxes. I thank my fellow attorneys general for their partnership in this effort to stand up for ordinary Americans and hold companies who cheat consumers accountable.”

In 2022, Attorney General James 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 on to 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 who are eligible for a payment will be notified by email by the settlement fund administrator, Rust Consulting. These consumers will receive a check in the mail automatically, without filing a claim. Checks are expected to be mailed out starting next week.

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. Individuals who filed for three consecutive years could get up to $85. For more information about who is covered by the settlement, and information about the settlement fund, please visit www.AGTurboTaxSettlement.com.