AG Dana Nessel Announce $141 Million Settlement

LANSING – Michigan Attorney General Dana Nessel announced that consumers who were tricked by TurboTax's owner Intuit into paying for free tax services will begin receiving checks from a $141 million multistate settlement announced in May 2022. Approximately 4.4 million consumers nationwide will receive checks in the mail from the multistate settlement. Michigan will receive more than $3.5 million for more than 122,000 customers who were tricked into paying to file their federal tax return. Eligible consumers will be contacted by email about the settlement. Checks will be mailed throughout May 2023.

"Intuit defrauded hard-working taxpayers for no other purpose than to increase its company's profits," Nessel said. "This settlement should be a warning to all corporations that mislead the public that they will be held accountable for their deception and their professional reputation is likely to suffer."

In 2022, New York Attorney General Letitia James, with assistance from the attorneys general of Florida, Illinois, New Jersey, North Carolina, Pennsylvania, Tennessee, Texas, and Washington, 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 have signed onto 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 for payment will be notified by email by the settlement fund administrator, Rust Consulting. These consumers will receive a check in the mail automatically, without filing a claim. Checks are expected to be mailed out starting next 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 the AG Turbo Tax Settlement website.