SC consumers will receive checks in TurboTax case settlement

COLUMBIA, S.C. (WCSC) - The state of South Carolina will receive $2.2 million from a multistate settlement against the maker of TurboTax tax preparation software, the state’s attorney general says.

Intuit, which makes the software, agreed to pay out a total of $141 million in May 2022 after several state attorneys general accused Intuit of tricking low-income taxpayers into paying to file their federal tax returns when they were eligible to file free through the Internal Revenue Service.

“No one likes to fill out their tax returns, but it’s a low blow to trick people into paying to file when they could have done it for free,” South Carolina Attorney General Alan Wilson said. “Our office will continue to protect the people of South Carolina from being taken advantage of.”

Some 72,000 state taxpayers are expected to receive checks for approximately $30 as part of the settlement.

Eligible consumers are 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, a release from Wilson’s office states.

Consumers who are eligible for 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.

Click here for more information about eligibility and the settlement fund.

The amount each consumer receives will be based on the number of tax years for which they qualify, the release states.

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