TurboTax Lawsuit: $141M Settlement Status and Details

State attorneys general alleged Intuit steered eligible consumers away from free filing; the 2022 settlement led to $141 million in automatic restitution.

The multistate TurboTax lawsuit ended in a $141 million settlement that paid restitution to nearly 4.4 million consumers in May 2023. Because administrators distributed those settlement checks automatically without requiring a formal claims process, there is no open claim form or application window available for that agreement today.

While the multistate agreement resolved state-level claims, the Federal Trade Commission (FTC) pursued separate administrative litigation regarding commercial advertising practices.

What the TurboTax Lawsuit Was and Whether Money Is Still Available

The multistate TurboTax lawsuit ended in a $141 million restitution agreement announced by the New York Attorney General in May 2022. Checks from this settlement were mailed in May 2023, meaning there is no active claims portal or filing deadline to collect money from that agreement today. Three steps are worth taking if you are unsure whether a payment reached you.

First, check the official settlement administrator website at www.AGTurboTaxSettlement.com to review official distribution notices. Rust Consulting was the settlement administrator. Second, look through your mail and email from 2023 for notices from the administrator or your state attorney general. Third, verify any communication by contacting the settlement administrator or a state attorney general at the contacts on this page.

The official announcement gave no late-claim procedure. Our general guide on how to claim settlement money explains how claim-based settlements usually work.

The 2022 Multistate Settlement Details

In May 2022, Intuit agreed to pay $141 million to resolve an investigation joined by all 50 states and the District of Columbia. The settlement was formally announced in a New York Attorney General press release.

State attorneys general alleged that Intuit steered consumers who were eligible to file for free through the Internal Revenue Service (IRS) Free File program into paying for TurboTax products. According to the New York Attorney General, the restitution covered nearly 4.4 million consumers who started in TurboTax's Free Edition for tax years 2016 through 2018 and were told they had to pay although eligible for IRS Free File through TurboTax.

The agreement also required Intuit to suspend its "free, free, free" ad campaign. Roughly $2.5 million of the $141 million went to administrative costs.

Distribution of the 2023 Settlement Payments

Settlement checks were distributed automatically to eligible consumers during May 2023 without requiring participants to submit a claim form. On May 4, 2023, the New York Attorney General (AG) issued a consumer distribution alert stating that checks would be mailed automatically throughout May 2023, with Rust Consulting as settlement administrator. In New York alone, more than 176,000 eligible consumers received checks under the distribution plan.

According to the announcement, most consumers received about $29 to $30, and people eligible for three consecutive years could receive up to $85. No claim was required.

The official announcements from state regulators gave no cash-by-date or late-claim procedure for individuals who misplaced their checks or did not receive them. If you are unsure whether a payment reached you, contact the settlement administrator through www.AGTurboTaxSettlement.com or your state attorney general. The New York Attorney General consumer line is 1-800-771-7755.

The Separate Federal Trade Commission Action

Separately, the Federal Trade Commission (FTC) filed a complaint against Intuit on March 29, 2022, as documented in the FTC TurboTax case proceedings. The FTC alleged that Intuit's "free" ads were deceptive, saying roughly two-thirds of tax filers could not use the free product in 2020.

An Administrative Law Judge (ALJ) issued an initial decision on September 8, 2023. The Commission issued its final opinion and order on January 22, 2024, by a unanimous 3-0 vote. In a formal FTC press release, the agency confirmed it found deceptive advertising practices by Intuit.

The Commission's final order barred Intuit from advertising any product or service as free unless that product is truly free for all consumers or the promotion discloses, clearly and conspicuously near the claim, the exact percentage of taxpayers who qualify. Intuit subsequently sought judicial review of the agency's order by filing a petition in the U.S. Court of Appeals for the Fifth Circuit under docket number 24-60040.

Judicial Review in the Fifth Circuit Court of Appeals

In March 2026, the U.S. Court of Appeals for the Fifth Circuit reviewed the administrative order issued against Intuit. As reported from the court's published opinion, the federal appellate court held that FTC deceptive-advertising claims must be decided in an Article III court under the legal framework established in SEC v. Jarkesy rather than through internal agency proceedings before an ALJ. Based on that holding, the Fifth Circuit granted Intuit's petition, vacated the FTC administrative order, and remanded the matter back to the agency.

The ruling concerns the FTC's advertising order. The state settlement payments in May 2023 are a separate matter.

Consumers monitoring regulatory developments should check the official FTC case proceeding page to see what steps the agency takes following the remand.

Steps for Consumers Who Missed Settlement Payments

Only the settlement administrator can confirm whether you were included in the settlement. The official announcement points readers to the settlement website, www.AGTurboTaxSettlement.com, and to Rust Consulting, the settlement administrator.

You can also contact your state attorney general, and New York residents can contact the consumer assistance hotline at 1-800-771-7755. You can learn more about standard consumer protections by reviewing our guide on state and federal consumer rights.

Be wary of any individual, service, or website that asks for an upfront fee to release or recover settlement money. For general background, see our guide on whether legal settlements are taxable.

Legal Representation and Private Legal Options

The 2022 settlement was an agreement between Intuit and state attorneys general, and the FTC case was a federal agency proceeding. If you have questions about your own situation, a licensed attorney can review it.

You can read our explanation of contingency fee agreements to see how some attorneys charge for their work.

If you are considering a lawsuit of your own, our overview on how to file a consumer lawsuit walks through foundational procedural requirements. You can also explore our broader coverage of consumer class action lawsuits for other matters. Speak directly with a qualified attorney in your jurisdiction to evaluate any private legal strategy.

Frequently Asked Questions

What was the TurboTax lawsuit about?

State attorneys general alleged that Intuit steered eligible taxpayers away from the IRS Free File program into paid TurboTax products. According to the New York Attorney General, the restitution covered consumers who started in TurboTax's Free Edition for tax years 2016 through 2018 and were told they had to pay despite being eligible to file for free.

Is there a TurboTax class action I can still join?

No. The $141 million settlement was negotiated by state attorneys general and checks were sent automatically in May 2023. There is no open claim form or application process for that settlement, though you may speak with a licensed attorney to check whether any newly filed private lawsuits exist.

How much was the TurboTax settlement?

Intuit agreed to pay a total of $141 million under the multistate agreement signed by all 50 states and the District of Columbia. Most eligible consumers received about $29 to $30, while consumers eligible across three consecutive tax years received up to $85, and roughly $2.5 million went to administrative costs.

What happened in the FTC case against Intuit?

The FTC issued an opinion and final order in January 2024 finding that Intuit engaged in deceptive advertising and ordering marketing restrictions. However, in March 2026, the Fifth Circuit Court of Appeals granted Intuit's petition, vacated that order, and remanded the case as reported from the court's opinion, holding that FTC deceptive-advertising claims must be decided in an Article III court under SEC v. Jarkesy.

Is TurboTax really free?

In its March 2022 complaint, the FTC alleged that about two-thirds of tax filers could not use TurboTax's free product in 2020. Current eligibility criteria and product pricing are established directly by Intuit, so consumers should verify current terms on the official TurboTax website.

What should I do if I never got a settlement check?

Because the settlement distributed automatic checks in May 2023 without an ongoing late-claim procedure, contact the settlement administrator through www.AGTurboTaxSettlement.com or your state attorney general.