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Can you still join the 2022 TurboTax class action lawsuit?

Shania Wilson May 5, 2022
Can you still join the 2022 TurboTax class action lawsuit?
Photo by Kimberly White/Getty Images for TurboTax

Intuit, the owner of tax-filing service TurboTax, has agreed to pay a total of $141 million to 4.4 million low-income customers who were “unfairly charged”, CNBC reports.

The same publication states the customers in question were charged for upgrading from the TurboTax Free Edition but could have received those same tax-filing services for free from the IRS.

Amid the announcement, some TurboTax customers are wondering whether they can still join the class action lawsuit. Here’s what we know.

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Photo Illustration by Rafael Henrique/SOPA Images/LightRocket via Getty Images

TurboTax owner Intuit releases statement

A company statement released by Intuit promises a $141 million payout to customers who were charged for using the TurboTax Free Edition.

The statement reads: “Intuit entered into an agreement with the 50 state attorneys general and the District of Columbia that resolved these agencies’ inquiry related to our advertising practices for free tax preparation.”

Kerry McLean, Intuit’s executive vice-president and general counsel, added: “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.”

CNBC reports the TurboTax Free Edition was only free to taxpayers with “simple” returns as defined by Intuit, while those without “simple” returns were recommended to upgrade to the paid edition. Those customers may have been eligible for the IRS Free File Program, however.

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Can you still join the TurboTax class action lawsuit?

The TurboTax rebate is only available to claim if you’re an eligible customer.

As per the BBC, Americans earning below a certain salary threshold (less than $34,000) who used the company’s paid software to file taxes between 2016 and 2018, and were “unfairly charged”, are now eligible to join.

CNBC reports eligible customers are expected to receive about $30 for each year they paid for services. It has been reported those identified as entitled to the rebate will be automatically notified and receive a check by mail.

Altogether, Intuit is expected to pay out $141 million.

Intuit highlights advertising practice

New York Attorney General Letitia James, who led the lawsuit, said a TurboTax advertising campaign promoted the service as “free, free, free” but then asked customers to pay.

“Intuit cheated millions of low-income Americans out of free tax-filing services they were entitled to,” James claimed.

In response, Intuit’s statement read: “As part of the agreement, Intuit admitted no wrongdoing, agreed to pay $141 million to put this matter behind it, and made certain commitments regarding its advertising practices. 

“Intuit already adheres to most of these advertising practices and expects minimal impact to its business from implementing the remaining changes going forward.”

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Shania is a Magazine Journalism graduate from the University of Derby. Her main passion is rooted in print journalism, however, she also branches out towards social media and is also interested in public relations. Outside of writing, Shania enjoys using social media, reading, and drinking coffee.