by Logan Finney, Idaho Reports
Idaho residents who paid to file their taxes in 2017-2019 despite qualifying to file for free are receiving payments under a nationwide settlement with Intuit, the company behind tax filing software TurboTax.
Eligible TurboTax customers qualify automatically for the payment, and do not have to opt into the settlement. They should have already received an email from the settlement administrator and will receive a physical check in the mail.
“It’s possible your payment will not be mailed until late May, and therefore you may not receive your payment until early June,” according to the settlement website, run by a third-party administrator.
The checks to Idahoans are sent by “State of Idaho, Office of the Attorney General, Intuit Multistate Settlement Administrator” from a post office box in Minnesota.
The settlement agreement was announced last year after ProPublica reporting revealed the company used deceptive marketing practices to upgrade and upcharge customers who qualified to file for free.
According to the Attorney General’s Office, the checks total more than $892,000 for more than 29,000 Idahoans. Each affected customer is expected to receive about $30 for each tax year they qualified under the settlement, or up to $90. The settlement between Intuit and all 50 states and D.C. totals $141 million.
“On May 4, 2022, my office announced a $141 million multistate settlement with Intuit to compensate Intuit TurboTax customers who were trickd into paying for tax preparation services that should have been free for them,” says the enclosed letter from Idaho Attorney General Raùl Labrador.
The Attorney General’s Office published this press release on May 30:
Attorney General Labrador Announces Distribution of $141 Million Settlement to Millions of Low-Income Americans Deceived by TurboTax Owner Intuit
Consumers to Receive Checks in the Mail from Multistate Settlement Without Needing to File a Claim
Boise, ID – Attorney General Raúl Labrador announced that Idaho consumers who were tricked by TurboTax’s owner Intuit as part of the free filing program 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. Idaho will receive more than $892,000 for more than 29,000 Idahoans 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 starting in May 2023.
“Intuit deceptively received payment from millions of tax filers. They violated the trust of the American taxpayers and thousands of Idahoans who will now receive payment in the mail. I hope that this settlement demonstrates that I will continue to work with other attorneys general, both Republican and Democrat, to defend my constituents from deceptive business practices,” Attorney General Labrador said.
In 2022, New York Attorney General Letitia James, with assistance from the attorneys general of Tennessee, Florida, Illinois, New Jersey, North Carolina, Pennsylvania, 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 on to 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 a 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 www.AGTurboTaxSettlement.com.
Logan Finney | Associate Producer
Logan Finney is a North Idaho native with a passion for media production and boring government meetings. He grew up skiing, hunting and hiking in the mountains of Bonner County and has maintained a lifelong interest in the state’s geography, history and politics. Logan joined the Idaho Reports team in 2020 as a legislative session intern and stayed to cover the COVID-19 pandemic. He was hired as an associate producer in 2021 and they haven’t been able to get rid of him since.