Who qualifies for a TurboTax settlement fee
You could qualify for the settlement should you used TurboTax for federal returns for tax years 2016, 2017 or 2018, however have been eligible for the free model of the software program by IRS Free File.
The settlement applies to these who have been eligible for Free File and began 2016, 2017 or 2018 federal returns with Intuit’s free software program. If you have been then informed you did not qualify for the free software program, paid Intuit to full your return and did not use Intuit’s Free File product in a earlier yr, chances are you’ll obtain a fee, in accordance to the settlement website.
Taxpayers certified for Free File for 2022 with an adjusted gross revenue of $73,000, however the threshold was $64,000 for tax yr 2016, in accordance to the Free File Alliance.
How a lot cash to count on, and when
If you are a kind of customers eligible for a fee, you possibly can count on to hear from Rust Consulting, the settlement fund administrator, by electronic mail, and checks will begin being despatched next week. There is not any motion required by these affected.
While most eligible customers are anticipated to obtain about $30, chances are you’ll rise up to $85 should you used TurboTax for the three consecutive years named.
Although payments begin in May, some checks will not attain customers till early June, relying on the mailing date, in accordance to the settlement website. However, should you do not obtain the funds by mid-June, you possibly can request a reissue by the web site along with your claimant ID issued by electronic mail.
Filers wronged by ‘predatory’ advertising
“TurboTax’s predatory and misleading advertising cheated hundreds of thousands of low-income Americans who have been making an attempt to fulfill their authorized duties to file their taxes,” James mentioned in a statement. “Today we’re righting that flawed and placing a reimbursement into the pockets of hardworking taxpayers who ought to have by no means paid to file their taxes.”
While roughly 70% of taxpayers qualify for Free File, solely 2% used it in the course of the 2022 submitting season, in accordance to the National Taxpayer Advocate’s annual report to Congress.