State announces distribution of payment from $141M settlement with Intuit

State officials with the Office of Consumer Protection say consumers who were “deceived” by TurboTax’s owner Intuit Inc. into paying for free tax services will begin receiving checks from a multi-million multi-state settlement announced in May 2022.

Approximately 4.4 million consumers nationwide will receive checks in the mail from the settlement. Up to 15,904 Hawaiʻi consumers who were impacted, will receive checks in the mail, according to a department press release.

The money available to be returned to Hawai‘i consumers is more than $481,135. Eligible consumers will be contacted by email about the settlement. Checks will be mailed throughout May 2023.

“This settlement compensates Hawai‘i residents who were tricked into paying for tax preparation services that should have been free,” said Hawaiʻi Office of Consumer Protection Executive Director Mana Moriarty. “This is a reminder that companies who mislead the public and engage in deceptive practices will be held accountable for their actions.”

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. The states argued that the company deceived 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 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.