MILLIONS of Americans across the country are entitled to a payout as part of a 50-state settlement resulting from a massive lawsuit.
The lawsuit was filed against Inuit Inc., the parent company of TurboTax – a service used by US taxpayers to file their tax returns.
Approximately 4.4 million consumers will receive checks in the mail as a result of the $141 million multi-state agreement announced in May 2022.
If you do the math, the average payout is around $30, although it can vary based on the number of years you’ve used the product.
Those who qualify for the Settlement Fund are those who:
- TurboTax used in tax years 2016, 2017 and/or 2018;
- And who were also authorized to use an Intuit IRS Free File product.
- They must also have started their tax returns using the TurboTax Free Edition product, but then been informed that they were not eligible – and subsequently had to pay.
For the 2016 tax year, IRS Free File was available to taxpayers who earned $64,000 or less.
Up to 15,904 eligible consumers in Hawaii were affected, according to state officials with the Consumer Protection Agency.
It said the available funds that could be repaid to Hawaii totaled more than $481,135.
In a statement, Mana Moriarty, executive director of the Hawaii Office of Consumer Protection, said, “This is a reminder that companies that mislead the public and engage in fraudulent practices will be held accountable for their actions.”
OTHER GOVERNMENT APPLICANTS
Other states have also made statements on the comparison and how many residents should receive money.
Pennsylvania Attorney General Michelle Henry said in a press release, “By requiring consumers to pay for tax filing services that should have been available free of charge, Intuit cheated taxpayers of their hard-earned money.”
In Illinois, Attorney General Kwame Raoul announced that as a result of the bipartisan settlement, approximately 143,000 affected Illinoisans are entitled to nearly $4.4 million in funds.
In Connecticut, Attorney General William Tong announced checks totaling more than $1.27 million will be received by 41,735 consumers in the state.
Claiming Settlement Cheques
Eligible recipients do not need to take any action. If you are able to obtain a check, you should receive an email from the settlement fund administrator.
They should tell you the approximate amount you are entitled to. According to the settlement’s website, the payments will be sent out during the month of May.
The site says the average payout will be between $29 and $30.
Factors that led to the settlement
In 2022, New York Attorney General Letitia James, working with attorneys general from Tennessee, Florida, Illinois, New Jersey, North Carolina, Pennsylvania, Texas and Washington, announced a $141 million agreement with Intuit.
It came from the company that tricked millions of low-income Americans into paying for tax services that should have been free.
All 50 states and the District of Columbia have signed the agreement.
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