Are You One Of The Iowans Getting Money Back From Turbo Tax?

I’m one of the many Iowans who use Turbo Tax to do their taxes each year. Some years the refunds are bigger than in others. But thousands of Iowans will be getting even more money back soon, and it will be coming directly from Turbo Tax.

The Des Moines Register reports that thousands of Iowans who were “scammed” into paying for free tax services will be getting settlement checks thanks to a 2022 settlement with Turbo Tax’s owner, Intuit. Iowa Attorney General Brenna Bird made the announcement yesterday. In a statement, Bird said,

Tax season is already stressful enough for many Iowans. No Iowan struggling to make ends meet should have to fear being taken advantage of by deceptive business practices when filing their taxes. Thanks to the bipartisan coalition of all 51 (attorneys general), hard-working Iowans are being repaid the money they are owed.

The Register reports that more than 35,000 Iowans paid money to submit their federal tax return, which should have been a free service. Approximately $1 million will be paid out to Iowa residents who paid but shouldn’t have. The Register reports that the Iowa payout is just part of a $141 million settlement to be sent to millions of Americans.

So how do you know if you’re eligible for some of the settlement money? The Register reports that you should have already been contacted through the mail by Rust Consulting, the settlement fund administrator. Iowans who paid their federal taxes using Turbo Tax for tax years 2016, 2017, and 2018 and were eligible for the IRS Free File program will receive compensation checks in the mail.