Intuit's TurboTax paid $141 million to settle claims that it deceived millions of Americans into paying for tax filing that should have been free. The settlement, reached with all 50 state attorneys general in 2022, covers low-income taxpayers who were eligible for truly free filing but were steered toward paid versions. Payments are distributing through 2026.

What TurboTax Did Wrong

TurboTax marketed a "Free Edition" that was not actually free for most users. The company was accused of deliberately confusing the genuinely-free IRS Free File program with its paid "Free Edition," using SEO to hide the actual free federal filing program, steering low-income users eligible for free filing into paid products, and blocking search engines from indexing TurboTax's Free File landing page.

Who Is Eligible for the TurboTax Settlement?

You are likely eligible if you meet all three of these conditions:

  1. You filed your federal taxes using TurboTax in tax years 2016, 2017, or 2018
  2. You started in the "Free Edition" but were told you needed to upgrade and paid
  3. Your income was $34,000 or less (or you were active military with income under $66,000, or you qualified for the Earned Income Tax Credit)

Approximately 4.4 million Americans are eligible. Eligible claimants received approximately $30 per year of paid filing ($90 maximum for all three years).

Did Payments Already Go Out?

Initial payments were mailed in 2023 automatically to eligible taxpayers — the settlement administrator used IRS data to identify and pay eligible claimants without requiring a claim form. However, some payments went uncashed, and additional distribution rounds may still be occurring. If you believe you were eligible and did not receive a check, contact the settlement administrator.

What If I Missed the Initial Payment?

Uncashed checks and returned mail from the TurboTax settlement have generated follow-up distribution rounds. Check TurboTax settlement status on SettlementRadar to see if additional distribution opportunities are available.

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Frequently Asked Questions

I earned more than $34,000. Can I still claim?

The income threshold was $34,000 for most filers. Active-duty military with income under $66,000 and EITC-eligible filers had different thresholds. Check your AGI on your 2016–2018 tax returns to confirm eligibility.

I used H&R Block, not TurboTax. Is there a separate settlement?

Yes. H&R Block reached a separate settlement for similar conduct. Search H&R Block on SettlementRadar for current status.

I never filed taxes those years. Am I excluded?

The settlement covers only those who did file using TurboTax and were charged. Non-filers are not class members.