AUGUSTA, Maine — Maine Attorney General Aaron Frey has announced that Mainers who were tricked by TurboTax owner Intuit into paying for free tax services will begin receiving checks soon as part of a $141 million settlement.
Approximately 4.4 million consumers nationwide are set to receive checks in the mail from the multistate settlement announced in May of last year. In a release Friday, Frey said Maine would receive more than $740,000 for over 24,000 residents who were deceived into paying to file their federal tax return.
Frey said eligible consumers would be contacted by email about the settlement and checks would be mailed throughout May 2023.
Here's what to know about the settlement:
Who qualifies for the TurboTax settlement?
Under the agreement, Intuit will provide restitution to consumers who started using the commercial TurboTax Free Edition for tax years 2016 through 2018 and were told that they had to pay to file even though they were eligible for the version of TurboTax offered as part of the IRS Free File program.
When will I get my TurboTax refund?
According to the settlement website, payments will be mailed throughout May, though some users may be getting their payments in early June.
The payments will come from a third-party administrator called Rust.
Consumers are advised to request a reissue on the settlement website if the payments have not been received by mid-June.
How much money will TurboTax refund users?
Consumers are expected to receive a direct payment of approximately $30 for each year that they were deceived into paying for filing services.
Did I have to file a claim to receive money from the TurboTax settlement?
You don't need to do anything, according to the settlement website.
If you are eligible, you should receive an email from the settlement fund administrator that informs you of the approximate amount of your payment.
“This was a classic bait and switch that harmed Maine consumers – promises of free services lured Mainers in, but the company knew that the services consumers needed actually cost money,” Frey said in the release. “Citizens should be able to trust that advertisements mean exactly what they say, especially for services like tax filing that can be confusing and stressful. I’m pleased that consumers deceived by Intuit’s false advertising will begin receiving their financial compensation.”
The amount each consumer receives will be based on the number of tax years for which they qualify, according to Frey. He said most consumers are expected to receive between $29 and $30.
The multistate settlement lead by New York Attorney General Letitia James suspended TurboTax's misleading "free, free, free" ad campaign and ordered the company to pay the restitution to millions of American taxpayers.
