More than 4.4 million TurboTax users could receive an unexpected refund in the coming weeks.
Intuit, last year, agreed to a multistate settlement in which the TurboTax parent company agreed to pay $141 million to consumers who authorities say were tricked into paying for services that should have been free. Now the payments from that settlement are beginning to be disbursed.
Affected individuals will receive up to $85.
“TurboTax’s predatory and deceptive marketing cheated millions of low-income Americans who were trying to fulfill their legal duties to file their taxes,” said New York Attorney General Letitia James in a statement.
People eligible for the refund paid to file their federal tax returns through TurboTax in 2016, 2017, and/or 2018. They could have filed for free in that time period, via the IRS’s Free File Program.
While most affected consumers will receive checks of $29 or $30, James said, those who paid to file via TurboTax for three consecutive years will receive $85 checks.
Affected users will not need to file a claim and will be notified via email automatically by the Rust Consulting settlement fund administrator. Checks began going out this week.
Taxpayers can learn more at the official website for the settlement.
Intuit has denied any wrongdoing in the settlement and says the penalty will have a “minimal impact” to its business.
“Intuit is pleased to have reached a resolution with the state attorneys general that will ensure the company can return our focus to providing vital services to American taxpayers today and in the future,” said Kerry McLean, Intuit’s executive vice president and general counsel, in a statement.
Savings APYs are hitting record highs, but most Americans are leaving money on the table. See the best high-yield savings accounts and CD rates from Fortune Recommends.
