Are You Eligible for the TurboTax Settlement Money? Find Out Here
Sep 30, 2023 By Triston Martin

If you are one of the millions of TurboTax users who filed your taxes online in the past few years, you might be eligible for some settlement money. TurboTax, the popular tax preparation software, has agreed to pay $40 million to settle a class-action lawsuit that accused the company of misleading customers into paying for services they could have gotten for free.

As a result, many TurboTax users paid unnecessary fees to file their taxes, ranging from $40 to $200. If you are one of them, you could get some money back. In this article, we will explain how the TurboTax settlement works, who is eligible for it, and how to claim your share of the settlement money in a simple and easiest way! So, let’s dive in!

What is TurboTax Settlement Money?

The TurboTax settlement money is like a financial remedy for TurboTax users who got caught up in a mix-up. Intuit, the company behind TurboTax, has agreed to pay out this fund to folks who were led to believe they had to pay for tax prep services that should've been free. This whole thing came about because of a lawsuit in May 2022, accusing Intuit of some tricky marketing moves.

So, here's the deal: the settlement money adds up to a cool $141 million. It's going to head to TurboTax users who filed their taxes with them in the 2016, 2017, or 2018 tax years and had an income of less than $72,000. On average, folks are looking at around 30 bucks, but some might score up to $85.

Now, the good part is you don't need to jump through hoops to get your hands on this cash. If you qualify, Rust Consulting, the settlement administrator, will send you an email with all the instructions to grab your share.

How to Know that You’re Eligible for TurboTax Settlement Money?

Curious if you qualify for TurboTax settlement money? Let's break it down to see if you're eligible:

TurboTax User

First off, you must have used TurboTax to file your taxes during the tax years 2016, 2017, or 2018.

Income Limit

To qualify, your modified adjusted gross income (MAGI) for those years must not exceed $72,000. MAGI is a calculation method for income that encompasses elements such as wages, interest, and contributions to retirement plans. Meeting this income limit is crucial to be eligible for certain benefits or tax deductions.

Misled into Payment

You should have been directed to TurboTax's "free" product but then ended up being charged for it. If you were misled into paying for a service you initially thought was free, you meet this criterion. If you tick all these boxes, congratulations! You're eligible for the TurboTax settlement money. No need to take any immediate action; the settlement administrator, Rust Consulting, will send you an email notification if you qualify. This email will include a claimant ID number and instructions on how to track your payment status.

The average payout is expected to be around $30, but some lucky individuals might receive up to $85. Your specific payment amount hinges on factors like how many years you used TurboTax and whether you were charged during those years.

FAQs Related to TurboTax Settlement Money

Here are some FAQs related to TurboTax settlement money:

Who Is Eligible for the TurboTax Settlement Money?

To be eligible, you must have filed your taxes using TurboTax in the 2016, 2017, or 2018 tax years and had a modified adjusted gross income (MAGI) of less than $72,000 during those years. Additionally, you should have been directed to TurboTax's "free" product but were then charged for it.

How Much Money Will I Receive from the TurboTax Settlement?

The compensation you'll get from the TurboTax settlement hinges on the duration of your TurboTax usage and whether you were billed for its services. While the typical payment is estimated at approximately $30, certain individuals might receive as much as $85 as part of the settlement. The exact amount you receive will be determined by these factors, reflecting your particular circumstances and history with TurboTax.

How do I Claim My TurboTax Settlement Money?

Claiming your TurboTax settlement money is a straightforward process. If you qualify, you'll receive an email from the settlement administrator, Rust Consulting, containing comprehensive instructions on how to access and claim your payment. Additionally, you can monitor the progress of your payment by visiting the settlement website. This ensures a seamless and transparent procedure for eligible recipients to receive their settlement funds without complications.

What if I'm Unsure If I'm Eligible for the TurboTax Settlement Money?

No worries! You can check your eligibility by visiting the settlement website, AGTurboTaxSettlement.com, and entering your information. If you have further questions or need assistance, you can reach out to the settlement administrator, Rust Consulting, at 1-844-837-9645. They'll be happy to help clarify any doubts.

Conclusion

So, there you have it! If you're a TurboTax user who filed taxes in 2016, 2017, or 2018, and your income was less than $72,000 during those years, you might just be eligible for that TurboTax settlement money.

No need to fret; claiming your share is straightforward, and you'll receive instructions via email. Don't miss out on what's rightfully yours!