“This settlement rights a wrong and puts that money back into the pockets of taxpayers who never should’ve paid to simply file their taxes.”
Even though tax season is over, a number of TurboTax customers can expect to receive a check in the mail this month.
Over 100,000 Arizonans will receive a check worth up to $85 from TurboTax for being overcharged for services as a result of the company’s deceptive marketing practices.
The checks come as a result of a lawsuit settlement between TurboTax and attorneys general from all 50 states and the District of Columbia. Those impacted were low-income consumers eligible for free, federally-supported tax services — but were charged by TurboTax to file their federal returns across 2016, 2017, and 2018.
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“Every year, millions of taxpayers go online and do exactly what they are supposed to do: file their taxes,” said Attorney General Kris Mayes. “The deceptive practices of TurboTax took advantage of good faith taxpayers and nudged them into giving up some of their hard-earned dollars. This settlement rights a wrong and puts that money back into the pockets of taxpayers who never should’ve paid to simply file their taxes.
Do I Qualify?
Anyone who used TurboTax in 2016, 207, or 2018 that qualified at that time for free tax filing services but was charged is eligible to receive a payment. Qualifying situations for taxpayers who made $73,000 or less during the years listed, with no complex tax situations such as rental property income, crypto investments, or itemized deductions.
For those who aren’t sure, don’t worry: consumers eligible for restitution payments do not need to file a claim. Instead, they will be notified by email from Rust Consulting, the settlement fund administrator, and receive a check automatically.
Checks will be mailed throughout the month of May. The amount paid to each eligible consumer ranges from $29 to $85—depending on the number of tax years they qualify for—with the average amount being $30, according to the Office of the Arizona Attorney General.