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TurboTax customers in North and South Carolina could get checks from $141 million settlement

NORTH CAROLINA (QUEEN CITY NEWS) -- Both North and South Carolina will receive millions from a multistate settlement against TurboTax’s owner, Intuit, according to NC Attorney General Josh Stein and SC Attorney General Alan Wilson.

Attorney General Stein said 150,074 North Carolinians "were tricked into paying for free tax services by TurboTax" and will begin receiving checks from Intuit this month.

The payments are the result of a $141 million multistate settlement that was reached in May 2022. North Carolina consumers will receive $4,582,249.00 million from the settlement.

South Carolina will receive more than $2.2 million for more than 72,000 taxpayers who were "tricked into paying to file their federal tax returns," Attorney General Wilson said.

“No one likes to fill out their tax returns, but it’s a low blow to trick people into paying to file when they could have done it for free,” Attorney General Wilson said. “Our office will continue to protect the people of South Carolina from being taken advantage of.”

Approximately 4.4 million consumers nationwide will receive a payment, officials said.

You can view a copy of the settlement agreement by clicking here. The settlement is being administered by a third-party administrator, authorities explained.

The $141 million settlement applies to certain consumers who paid Intuit 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.  

Those eligible for payment will be notified by email. They will receive payment automatically, without needing to file a claim. Payments will be made by check, mailed throughout May 2023.

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.

Who is eligible to receive restitution?

An Intuit TurboTax customer will receive a payment if, in Tax Years 2016, 2017, or 2018, the customer was eligible to use an Intuit IRS Free File Product; began his or her tax returns using a TurboTax Free Edition Product; was informed that he or she was ineligible to use a TurboTax Free Edition Product; subsequently paid to use a TurboTax Paid Product, and had not used the Intuit IRS Free File Product in a previous tax year.

Do I need to do anything to qualify for restitution?

If you received an email from the fund administrator, you do not need to take any further action for a payment to be sent. Payments will be mailed throughout the month of May 2023. 

What does the settlement provide?

Under the settlement, Intuit is required to pay $141 million. Nearly all of this money will be distributed to qualifying Intuit TurboTax customers.

An Intuit TurboTax customer will receive a payment if, in Tax Years 2016, 2017, or 2018, the customer was eligible to use an Intuit IRS Free File Product; began his or her tax returns using a TurboTax Free Edition Product; was informed that he or she was ineligible to use a TurboTax Free Edition Product; subsequently paid to use a TurboTax Paid Product, and had not used the Intuit IRS Free File Product in a previous tax year.

When will I receive my payment?

Payments will be mailed throughout the month of May 2023 to eligible consumers. Please allow adequate time for delivery.

Where can I verify if the check I received is valid?

Click here if you would like to verify the status of your check. You will need both your Claimant ID Number and your check number. Both of these numbers can be located on the tear-off portion of the check you received.

Payments will be mailed throughout the month of May 2023. Please allow adequate time for delivery. It's possible your payment will not be mailed until late May, and therefore you may not receive your payment until early June, officials said.


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