![]() These people were told they had to pay to file, even though they qualified for the IRS Free File program, a partnership between the agency and major tax prep software companies. Intuit is providing restitution to nearly 4.4 million people in all 50 states who used TurboTax's Free Edition between tax years 20. Who qualifies for the TurboTax settlement? In a statement, Intuit admitted no wrongdoing and said it agreed to the deal to "put this matter behind it."īelow, find out if you qualify, what you need to do to receive compensation and how much money affected customers can expect to get from the settlement. "This agreement should serve as a reminder to companies large and small that engaging in these deceptive marketing ploys is illegal." "For years, Intuit misled the most vulnerable among us to make a profit," James said in a May 4 statement. The company also lured people in with ads that touted its free edition, "only to deceive them into paying," according to New York Attorney General Letitia James, who brokered the multistate settlement. Investigators said Intuit also engaged in deceptive marketing and trade practices, including intentionally blocking its IRS Free File landing page from search engine results. The FTC claimed that, in 2020 alone, two-thirds of eligible filers couldn't use TurboTax Free Edition, including gig workers and people who earned farm income. Intuit, TurboTax's parent company, has agreed to a $141 million settlement after the Federal Trade Commission filed suit alleging it deceived millions of customers into paying for tax-prep services that should have been free. This story is part of Taxes 2022, CNET's coverage of the best tax software and everything else you need to get your return filed quickly, accurately and on-time.
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