Turbo Tax settlement checks on the way: How much will they be and who qualifies?

Turbo Tax settlement checks on the way: How much will they be and who qualifies?

Millions of taxpayers who used the popular Intuit filing software Turbo Tax will be receiving a check in the coming weeks. That money is part of a 2022 50-state, $141 million settlement stemming from allegations the company charged people for services that should have been free.

In a statement this week, New York Attorney General Letitia James said the settlement is part of “righting the wrong,” done by the company.

“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. “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.”

READ MORE: $17 an hour minimum wage proposed in new bill

More than 4.4 million taxpayers are eligible under the terms of the settlement by signed attorneys general of all 50 states.

To be eligible, consumers must have used Turbo Tax’s Free Edition for tax years 2016, 2017 and 2018 and were  told they had to pay to file even though they were eligible to do so for free through the IRS Free File program offered by TurboTax.

Consumers who are eligible for a payment will be notified by email by the settlement fund administrator, Rust Consulting, with a check following automatically. 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.

The settlement comes after a 2019 ProPublica report that found the California-based company used deceptive tactics to steer low-income consumers toward its commercial products and away from federally supported free tax services. The IRS Free file program is geared towards taxpayers earning roughly $34,000 and members of the military.

Intuit withdrew from the program in 2021.