TEXAS, USA — Texas Attorney General Ken Paxton announced Thursday that $141 million will be distributed to Intuit TurboTax customers who were misled into paying the company to file their federal tax returns.
Approximately 4.4 million consumers nationwide will receive a payment, including more than 465,000 Texas residents. The payments are the result of a multistate settlement reached with Intuit in 2022.
“Intuit misled everyday Americans into paying for a service that should have been free, and now Intuit is paying the price,” Paxton said in a release from his office. “This settlement will help hundreds of thousands of Texans, as well as millions of people across the country, get their money back. We remain committed to watching consumers’ backs and stand at the ready to hold accountable any company that takes advantage of hard-working Americans.”
The settlement applies to certain customers who paid Intuit 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.
Customers who are eligible for a payment will be notified by email or postcard from the settlement fund administrator, Rust Consulting, and will receive a payment automatically without needing to file a claim. Payments will be made by check, mailed throughout May 2023.
The amount each customer receives will be based on the number of tax years for which they qualify. Most Texas customers are expected to receive between $28-29.
For more information about who is covered by the settlement and for information about the settlement fund, visit AGTurboTaxSettlement.com.
Paxton cautions consumers to be on alert for scams including phishing scam emails designed to appear to come from the attorney general or the settlement fund administrator. Customers will not need to file a claim, provide account credentials or pay money to receive a payment under the settlement.
To read the underlying assurance of voluntary compliance, click here.