TurboTax customers to receive checks in $141 million settlement
TurboTax products sit on display at Costco on January 28, 2016 in Foster City, California. (Photo by Kimberly White/Getty Images for TurboTax)
Millions of Americans who qualified for free tax services — but were instead deceived into paying TurboTax for their returns — will soon get settlement checks in the mail.
In a settlement last year, TurboTax's owner Intuit Inc. was ordered to pay $141 million to some 4.4 million people across the country. Those impacted were low-income consumers eligible for free, federally-supported tax services — but paid TurboTax to file their federal returns across the 2016, 2017 and 2018 tax years due to "predatory and deceptive marketing," New York Attorney General Letitia James said.
All 50 states and the District of Columbia signed the May 2022 settlement, which was led by James.
RELATED: TurboTax hid entirely free online tax filing service from search engines, report alleges
Consumers eligible for restitution payments do not need to file a claim, the New York Attorney's General Office said Thursday. They will be notified by an email from Rust Consulting, the settlement fund administrator, and receive a check automatically.
Checks will be mailed starting next week, and continue through the month of May. The amount paid to each eligible consumer ranges from $29 to $85 — depending on the number of tax years they qualify for.
"TurboTax’s predatory and deceptive marketing cheated millions of low-income Americans who were trying to fulfill their legal duties to file their taxes," James said in a Thursday statement. "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."
RELATED: IRS looking to create electronic free-file tax return system for US taxpayers
At the time of the May 2022 settlement, James said her investigation into Intuit was sparked by 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.
Under the terms of last year's settlement, Intuit Inc. agreed to suspend TurboTax’s "free, free, free" ad campaign. According to documents obtained by ProPublica, Intuit executives were aware of the impact of advertising free services that were actually not free for everyone.
"The website lists Free, Free, Free and the customers are assuming their return will be free," an internal company PowerPoint presentation said, per ProPublica. "Customers are getting upset."
When contacted by The Associated Press on Friday, Inuit pointed to the company's May 2022 statement following the settlement agreement.
"Intuit is pleased to have reached a resolution with the state attorneys general that will ensure the company can return our focus to providing vital services to American taxpayers today and in the future," Kerry McLean, Intuit’s executive vice president and general counsel, said at the time.
Dem socialists ride wave of momentum after major wins
LiveNOW’s Austin Westfall is speaking with Tom LoBianco, a veteran national politics reporter and editor of 24sight News, as Melat Kiros scored a massive win in Colorado. Kiros ran for Colorado's 1st Congressional District and was supported by the Democratic Socialists of America (DSA), the Working Families Party (WFP) and the Justice Democrats.
4th of July deals and freebies
Many restaurant chains and food establishments are offering special discounts and freebies on July 4 in an effort to sweeten the holiday.
NYC preps for possible Taylor Swift wedding
We are learning more this week as The Associated Press is now reporting that Taylor Swift and Travis Kelce will celebrate their wedding at Madison Square Garden, according to a source. Video captured by our partners at FOX 5 NY from outside the arena shows a flurry of activity. LiveNOW’s Andy Mac is learning more about how the city is preparing for the possible wedding with FOX 5 New York’s Meredith Gorman. LiveNOW is also speaking with TMZ’s Deven Rall to learn more about the moving equipment that has been seen surrounding the venue.
Nancy Guthrie case: FBI determines some ransom notes were 'extortion attempts without legitimacy'
FBI officials say some of the ransom notes received in the disappearance of Nancy Guthrie has been determined to be "extortion attempts without legitimacy," while noting that other ransom demands received may potentially be legitimate.
Movie director sentenced to prison over unfinished Netflix show
Hollywood director Carl Rinsch will serve time in prison after being convicted of conning Netflix out of $11 million for a sci-fi show he never finished.
Firefighters save newborn after emergency birth in flood control tunnel
Las Vegas firefighters helped save a newborn after responding to reports of a woman in labor inside a flood control tunnel.
Kroger to buy Giant Eagle after failed Albertsons merger
Kroger plans to acquire Giant Eagle which has over 100 supermarkets and multiple pharmacies in several states.
President Trump speaks at Theodore Roosevelt Library
President Trump on Wednesday delivered remarks at the Theodore Presidential Library dedication ceremony in Medora, North Dakota.
Target and Ulta Beauty to end store partnership this August
A popular beauty brand’s five-year relationship with one of the nation’s largest chains is expected to end next month.
Court blocks Trump administration’s student loan forgiveness overhaul
Two federal judges have struck down a Trump administration overhaul of the public service student loan forgiveness program.