Nataliya Vaitkevich, turbotax

TurboTax settlement gives 14k Delawareans $430,000

Sam HautGovernment, Headlines

Nataliya Vaitkevich, turbotax

Turbotax settlement gives $430,000 to Delawareans.

The settlement of a class action lawsuit against Intuit, the owner of TurboTax, will give 14,187 Delawareans a total of about $430,000.

Across the country, approximately 4.4 million people will receive checks in the mail from the settlement involving every state and the District of Columbia. 

Those eligible for money will be contacted by email from the fund administrator Rust Consulting. Checks will be sent out automatically starting next week.

Eligible consumers include those who paid to file their federal tax returns through TurboTax for tax years 2016, 2017 and 2018 but were eligible to file for free through the IRS Free File Program.

Related Story: TurboTax owner to pay $400K to Delawareans after ‘misleading’ users

The amount each consumer receives will be based on the number of tax years for which they qualify but most consumers are expected to receive about $30. 

“Intuit spent millions lobbying to keep tax preparation artificially difficult and expensive,” said Delaware Attorney General Kathy Jennings in a press release. “They then preyed on consumers who were eligible for free filing, but believed they had no choice but to pay. These are exactly the kinds of corrupt practices that attorneys general are here to fight.”

The multistate agreement was initially announced in 2022.

Intuit, according to the settlement, hid the landing page for its free tax service so it did not appear in internet searches during the peak months of tax season in 2018. 

People attempting to search in 2018 were directed to Intuit’s service which was only free for people filing simple taxes.

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