Tricked into paying TurboTax? Here's how you might get money for it

NEW YORK (WETM) - New Yorkers who were tricked into paying TurboTax for seemingly free tax services are set to get their share of a $141 million settlement with the company. New York Attorney General Letitia James announced that checks will be going out to New Yorkers throughout May 2023 if they were part of the settlement.

More than 176,000 people in the Empire State are set to receive over $5.4 million of the larger settlement. The announcement said the individual amounts will vary, but most people are expected to get around $30; those who paid for TurboTax for three years could get up to $85.

The AG's office announced the multi-state settlement in 2022, saying TurboTax owner Intuit deceived 4.4 million low-income Americans and tricked them into paying for free tax services. People who are part of the case will be contacted by email about their individual checks and may see the money starting next week.

“TurboTax’s predatory and deceptive marketing cheated millions of low-income Americans who were trying to fulfill their legal duties to file their taxes,” AG James said. “Today we are righting that wrong and putting money back into the pockets of hardworking taxpayers who should have never paid to file their taxes. I thank my fellow attorneys general for their partnership in this effort to stand up for ordinary Americans and hold companies who cheat consumers accountable.”

Anyone who paid TurboTax for their federal tax returns for the 2016, 2017, or 2018 tax years but was eligible for the IRS Free File Program could see a check in their mailbox. After getting an email from Rust Consulting, they will get a check automatically without having to file a claim.