TurboTax customers set to receive $141 million settlement - are YOU eligible for a payout?

Millions of Americans who were deceived by an online firm into paying for tax return services that should have been free will receive settlement checks this month.

Website TurboTax was accused of launching 'predatory' and 'deceptive' marketing campaigns which lured customers away from free services run by the Internal Revenue Service (IRS). 

The company plugged its own tax return process as 'free, free, free' in an advertising campaign but then would lump customers with 'upgrades' and add-on fees they did not need.

Last year it was ordered to pay $141 million to the 4.4 million customers who were affected. 

Now victims have started to receive their settlement money, with payments ranging between $29 and $85 depending on the number of tax years they qualify for.

TurboTax was accused of launching 'predatory' and 'deceptive' marketing campaigns which lured customers away from free services

TurboTax was said to have preyed on low-income households who were eligible to use the Free File Program from the IRS. 

After promising a free service, TurboTax would claim each customer's return did not meet its definition of 'simple' to file.

Customers were then presented with the options of paying for a 'deluxe' package - which cost $39 for a federal filing - or a more expensive 'premier' package for $69. 

Self-employed workers were charged $89 for a federal filing. Extra fees were applied for workers who needed to make a separate state filing - something the majority of states require.

Victims used the service to file their returns across the 2016, 2017 and 2018 tax years. 

The case against TurboTax and its parent company Intuit was led by New York Attorney General Letitia James 

In a statement last week James said: 'TurboTax’s predatory and deceptive marketing cheated millions of low-income Americans who were trying to fulfill their legal duties to file their taxes.

'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.'

Those eligible for compensation do not need to file a claim themselves to receive the money.   

They will be alerted via an email from Rust Consulting - which is administrating the settlement fund - and will receive a check automatically.

Many have already received the email and checks will be physically mailed from next week, continuing until the end of May. 

TurboTax was forced to pay $141 million after deceiving its customers by charging for services which should have been free. The topic has been discussed widely on TikTok

James's case against TurboTax was sparked by an investigation by news site ProPublica, which revealed the firm preyed on low-income families.

The piece featured a snippet from a TurboTax power point presentation which admitted: 'The website lists Free, Free, Free and the customers are assuming their return will be free.

'Customers are getting upset.'

The slide also admitted that its 'agents are suggesting an upgrade for customers when they don't need it.'

At the time Intuit was run by longtime CEO Brad Smith who stepped down in 2018.

In his time in the role, the worth of his stake in the company ballooned from $20 million to $220 million. Intuit's current CEO is Sasan Goodarzi.

The CEO of TurboTax's parent company Intuit is currently Sasan Goodarzi, pictured 

Intuit was previously run by CEO Brad Smith, left, whose wealth ballooned from $20 million to $220 million during his time in the role. Intuit's co-founder Scott Cook, right, is currently worth $4.3 billion 

Meanwhile the firm's co-founder Scott Cook is currently worth $4.3 billion, according to Forbes. 

When contacted by Dailymail.com, Intuit reiterated its statement it made following the May 2022 settlement agreement.  

'Intuit is pleased to have reached a resolution with the state attorneys general that will ensure the company can return our focus to providing vital services to American taxpayers today and in the future,' Kerry McLean, Intuit’s executive vice president and general counsel, said.