TurboTax Class Action Settlement Payment for 2024 Initiated: Who Qualifies?
4 min read
Attorney General of New York Letitia James has disclosed that Intuit, the parent firm of TurboTax, has reached a settlement of $141 million to compensate almost 4.4 million consumers throughout all 50 states and the District of Columbia. This decision resolves claims that Intuit used in deceptive marketing tactics while offering free tax filing services to people who didn’t qualify because of their unique tax situation.
This misleading marketing tactic, which has been called “predatory and deceptive,” has disproportionately hurt low-income Americans who are trying to pay their taxes. By offering compensation to those who were tricked into paying for services that were fraudulently marketed as free, the settlement aims to rectify this injustice.
TurboTax Settlement Request Payment 2024
The settlement’s origin is connected to a probe of Intuit’s sales and marketing strategies for its online tax preparation software, TurboTax. At the center of the controversy was the Federal Trade Commission’s (FTC) 2022 charge that Intuit had used the word “free” misleadingly in its advertising.
Consumers believed they could file their taxes without paying any fees as a consequence. Even still, the FTC pointed out that a significant portion of taxpayers—those with particular forms of income, such earnings from the gig economy or agricultural revenue—were unable to utilize this free service. Around two-thirds of taxpayers were estimated to be unable to take advantage of TurboTax’s free service in 2020 as a result of these limitations.
Intuit defended its policies, highlighting its participation in the IRS Free File program and reaffirming the legitimacy of its free filing options. However, a settlement was struck in May 2022 following the claims and the ensuing investigation. This agreement emphasizes the need of accountability and openness in the provision of tax preparation services, while also attempting to compensate affected consumers and serving as a corrective measure against misleading marketing tactics.
Qualifies Criteria for TurboTax Class Action Settlement
The qualifying conditions for the TurboTax Settlement are aimed at people who filed their federal tax returns in 2016–2017, and 2018 using TurboTax, but who were still eligible for the free version offered by the IRS Free File program. A detailed breakdown of those that qualify is provided below:
- Tax Years Targeted: The settlement specifically addresses taxpayers who incurred charges for filing their federal tax returns using TurboTax for the tax years 2016, 2017, and 2018.
- Eligibility for Free File: To qualify for a settlement payment, individuals must have been eligible for the free file option during these years. The Free File program caters to lower to moderate-income taxpayers, with the eligibility threshold set at an adjusted gross income (AGI) of $64,000 or less for the 2016 tax year, with slight adjustments in subsequent years.
- Initial Use of TurboTax’s Free Version: Eligible individuals are those who initiated their tax filing process using TurboTax’s free software for any of the specified tax years but were subsequently informed during the process that they did not meet the criteria for the free version and consequently paid Intuit to finalize and submit their tax return.
No Prior Use of Free File Product: Furthermore, to be eligible for a payment under this settlement, individuals must not have utilized Intuit’s Free File product in any preceding year before the tax year for which they are seeking eligibility.
TurboTax Settlement Amount
- Total Settlement Fund: In order to resolve the allegations, Intuit has come to a $141 million settlement agreement. The purpose of this fund is to provide compensation to around 4.4 million customers nationwide who satisfy the eligibility requirements.
- Individual Payment Amounts: The amount of money awarded to each qualified customer under the terms of the settlement is determined by how many tax years they are eligible for. It is expected that most participants will get between $29 and $30 for each qualified tax year. Therefore, those who paid for TurboTax services throughout the three specified tax years (2016), 2017 and 2018 may be eligible to receive up to $85.
- Variation in Payment Amounts: Depending on the overall number of qualifying claimants and the administrative costs associated with paying the settlement, the exact amount may differ slightly. Still, the goal is to allocate the money to the affected parties as equally as acceptable.
Official Website for TurboTax Settlement Payments : Check Now
How to Receive Payment from the TurboTax Class Action Settlement?
Payments to qualified clients are distributed through a rigorous process as part of the TurboTax settlement. The following is a detailed summary of the settlement’s financial components and distribution process:
- Payout by Automatic: Qualified customers can get their settlement money without having to file a claim. Checks are sent directly to qualified parties based on the data that the settlement administrators have access to. The process is automated.
- Notification by Email: Customers who qualify receive notifications through email from Rust Consulting, the settlement fund administrator. People need to know this message since it tells them if they qualify and gives them details about the settlement.
- Payment Timetable: May 2023 is when the first cheques will be distributed. The exact moment a person receives their check can differ depending on a number of variables, including the frequency of mailing and the amount of money being handled.
A major turning point in protecting consumer interests has been reached with the TurboTax Settlement, which emphasizes the need of honest and open marketing, especially when it comes to essential services like tax preparation.
Establishing a norm for corporate responsibility, this settlement also tackles the financial consequences that millions of consumers suffered after being tricked into paying for services that were purportedly free.
In addition to offering financial compensation, this settlement also sends a stronger message about the value of fairness and honesty in business dealings, as qualified persons begin to get their checks.
