TurboTax, states reach financial settlement in consumer case

TurboTax log on laptop
TurboTax logo Photo credit Getty Images

(WBBM NEWSRADIO) — Illinois residents are among those getting money back from TurboTax.

Under an agreement between all 50 states and the owners of TurboTax, the company will pay $141 million as restitution to millions of American taxpayers who used the firm’s “free” edition for the tax years 2016 to 2018.

In Illinois, 130,000 residents will split $4 million in the settlement, Attorney General Kwame Raoul said Wednesday.

States opened an investigation following reports TurboTax was using deceptive tactics to steer low-income consumers to its commercial products and away from federally support free tax services.

“Intuit attracted customers to TurboTax with promises of free tax preparation services, leaving people to learn the hard way that those services were anything but free,” Raoul said in a prepared statement.

Intuit, maker of TurboTax, admits no wrongdoing.

Consumers are expected to receive a direct payment of approximately $30 for each year that they were deceived into paying for filing services, Raoul’s office said. Impacted consumers will automatically receive notices and a check by mail.

Featured Image Photo Credit: Getty Images