Delaware consumers who ended up paying for TurboTax software, even though they were eligible for free preparation software, will benefit from a $141 million multistate settlement announced this month.
Approximately 4.4 million consumers nationwide will receive checks in the mail. Delaware will receive more than $430,000 for 14,187 consumers who paid to file their federal tax return. Eligible consumers will be contacted by email about the settlement. Checks will be mailed throughout May 2023.
“Intuit spent millions lobbying to keep tax preparation artificially difficult and expensive,” said Delawre Attorney General Kathy Jennings. “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. I’m grateful to the staff in our office who helped secure this settlement for thousands of Delawareans.
In 2022, Jennings and other attorneys general announced a $141 million multistate agreement with Intuit for deceiving millions of low-income Americans into paying for tax services that should have been free. All 50 states and the District of Columbia are parties to the agreement.
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.
Consumers who are eligible will be notified by email by the settlement fund administrator, Rust Consulting. These consumers will automatically receive a check in the mail, without filing a claim. Checks are expected to be mailed out starting this week.
The amount each consumer receives will be based on the number of tax years for which they qualify. Most consumers are expected to receive between $29 and $30. For more information about who is covered by the settlement, and information about the settlement fund, please visit www.AGTurboTaxSettlement.com.
