Many companies featured on Money advertise with us. Opinions are our own, but compensation and
in-depth research may determine where and how companies appear. Learn more about how we make money.

By:
Editor:
Published: May 05, 2022 5 min read
Close-up of a smartphone with the Turbo Tax App open and a 1040 Tax Form in the background
Money; Shutterstock

Some 4.4 million Americans who got duped into paying to file taxes through TurboTax when they could have filed for free are officially getting their money back.

New York Attorney General Letitia James announced a legal settlement Wednesday in which Intuit, the company that owns popular tax preparer TurboTax, agreed to provide $141 million in restitution to customers it "unfairly charged," according to a news release. Those customers will receive $30 for each year they qualified for the federal IRS Free File program but ended up paying to file taxes due to TurboTax's confusing system.

"Intuit cheated millions of low-income Americans out of free tax filing services they were entitled to," James said in the release. "Today, every state in the nation is holding Intuit accountable for scamming millions of taxpayers, and we’re putting millions of dollars back into the pockets of impacted Americans."

The agreement comes after New York and other states investigated TurboTax for encouraging customers to use paid tax prep options when they could have filed at no charge through the IRS Free File, a partnership between the government and several name-brand softwares to help Americans below certain income levels do their annual taxes.