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Florida, Georgia secure millions of dollars for citizens misled by TurboTax

Fla. more than $10.3 million, Ga. more than $4 million
Posted at 5:08 PM, May 04, 2022
and last updated 2022-05-04 17:29:05-04

(WTXL) — The states of Georgia and Florida announced Wednesday they secured millions of dollars for their citizens from the owner of TurboTax, a tax filing service, after it was determined that TurboTax deceived individuals for tax years 2016 through 2018.

More than 134,000 Georgians are expected to receive a portion of a more than $4 million award, while some Floridians will receive a portion of a more than $10.3 million award.

According to the Georgia Attorney General’s Office, consumers were deceived by TurboTax into paying for free tax services.

The Georgia Attorney General's Office joined a multi-state effort with Florida and the District of Columbia against TurboTax.

As result of the multi-state agreement, Intuit, which is the parent company of TurboTax, will pay $141 million in restitution to consumers in the United States who were wrongfully charged.

Part of the agreement forces Intuit to end an advertising campaign that promised free tax preparation.

The preparation led to consumers paying for TurboTax’s services.

Intuit provides a free tax preparation service to the Internal Revenue Service for those making less than $34,000 a year and military personnel.

Intuit also markets TurboTax’s Free Edition for users that only need a simple tax return filed.

If an individual doesn’t meet the criteria for a simple tax return, then they were ‘misled’ by TurboTax to complete the paid return.

The Georgia Attorney General’s Office notes Intuit had unfair practices that guided consumers that qualified for the free tax preparation provided by the IRS, to its tax return platform.

Consumers are expected to receive a direct payment of approximately $30 for each year that they were deceived into paying for filing services. Impacted consumers will automatically receive notices and a check by mail.