Last year, in a settlement, TurboTax was ordered to pay $141 million after allegedly deceiving millions of Americans,who qualified for free tax return services, into paying TurboTax for their returns. The customers who were affected will soon be receiving their checks.
According to ABC News and New York Attorney General Letitia James, “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.”
Letitia James also said the settlement is a way to right the wrongs done by TurboTax by giving money back to the “low-income Americans who were trying to fulfill their legal duties to file their taxes.”
In addition to paying customers, TurboTax’s parent company, Intuit, under the terms of the settlement last year, suspended the “free, free, free” ad campaign that advertised free tax returns even though services were not free for everyone.