TurboTax from Intuit has agreed to pay $141 million to 4.4 million customers who used their free filing service but ended up paying for it. The settlement follows claims that TurboTax was misleading in advertising their product as free and then charging more for more complicated returns. This affected low-income taxpayers who could have filed for free with the IRS filing tool but were not eligible under TurboTax's free program.
Customers who could have filed for free with the IRS program are eligible for payment, and TurboTax has agreed to make changes to better inform customers about their eligibility.