Thousands of Floridians to get checks in the mail from TurboTax 'free' settlement. Here's how much

Did you get an unexpected check in the mail this week? Sometimes these are annoying marketing gimmicks or even just outright scams. But this one might be payback for a scam you already fell for.

If you were one of the millions of Americans who qualified for the federally supported free tax filing service but were tricked into using TurboTax's "free, free, free" service instead, you could be receiving part of the $141 million settlement between the company behind TurboTax, California-based Intuit, and all 50 states from a class-action lawsuit last year.

Checks began going out this week to more than 350,000 Floridians "who fell victim to TurboTax’s deceitful business practices," totaling more than $10 million, according to Florida Attorney General Ashley Moody.

Under the terms of a settlement signed by the attorneys general of all 50 states, TurboTax's owner, California-based Intuit, will suspend TurboTax’s confusing free ad campaign and pay restitution to nearly 4.4 million taxpayers for "predatory and deceptive marketing," New York Attorney General Letitia James said.

Here's what you need to know.

How much will I get from TurboTax's settlement?

First things first: If you qualify for payment and filed with TurboTax for tax years 2016, 2017 and/or 2018, you should see a check for anywhere from $29 to $85, depending on how many years you filed.

If you're eligible, you'll be notified by email from the settlement fund administrator, Rust Consulting.

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Do I have to submit anything, or fill anything out?

No. Consumers do not have to fill out any forms, pay anything or provide any account information to receive a payment if they qualify for the multistate settlement. Checks will automatically be mailed throughout May.

You can check the status of your check at agturbotaxsettlement.com/Payment-Verification.

Is the IRS really texting you? No, it's one of many tax scams.

How do I know if I qualify for the TurboTax settlement?

If you were eligible for the IRS's Free File at the time and started 2016, 2017 or 2018 federal tax returns with TurboTax's free service, but were told you didn't qualify and had to pay to upgrade or complete your filing, you may receive a payment. You also must not have used Intuit's Free File service in a previous year.

In 2016, the threshold for Free File eligibility would have been an adjusted gross income of $64,000, according to the Free File Alliance.

Do you qualify? TurboTax customers to receive checks for $141M settlement. Here's what you need to know.

When do the TurboTax settlement checks go out?

If you're eligible you should get an email from Rust Consulting, the settlement fund administrator, and checks should begin arriving this week. Payments will be sent throughout May but some tax filers may not receive their payment until early June, according to the settlement website.

What if I'm eligible for a TurboTax settlement check but didn't get one?

If you haven't received a payment by mid-June, you can visit agturbotaxsettlement.com and request a reissue. You'll need the Claimant ID Number from the email notice you may have received.

So what did TurboTax do?

If your income is below a certain level you qualify for the Internal Revenue Service Free File Program, and some tax preparation websites partnered with the IRS to offer it. But a 2019 ProPublica investigation showed how TurboTax hid its IRS-related "Free File" option on its website and instead steered eligible taxpayers toward their confusingly named "freemium" service.

"Many consumers did not learn that payment would be necessary until spending time and effort inputting tax information into TurboTax," Moody said in a 2022 release. "Moreover, the investigation found that some consumers eligible for Intuit’s IRS Free File product were misled to believe that an upgrade was necessary."

ProPublica's reporting pointed out that Intuit also blocked its IRS Free File landing page from search engine results.

According to documents obtained by ProPublica, Intuit executives were aware of the impact of advertising free services that were actually not free for everyone."The website lists Free, Free, Free and the customers are assuming their return will be free," an internal company PowerPoint presentation said, per ProPublica. "Customers are getting upset."

What is Free File?

The IRS Free File program is available for those whose adjusted gross income was $73,000 or less in 2022, about 70% of American taxpayers. Free File can even help those who have such low incomes that they're not required to file a federal income tax return but who would miss out on valuable tax credits if they don't file.

Free File, which offers free guided tax preparation help, is open through Oct. 16 and can be found at IRS.gov. Current participants include TaxSlayer, TaxAct, FreeTax USA and others. Partners have specific offers that apply to select groups of tax filers; all offers don't cover every potential participant.

In October 2021, TurboTax voluntarily dropped out of the IRS "Free File" program and, according to the settlement, cannot rejoin it "without approval of the IRS and the Director of the Free File Alliance."

What else does TurboTax have to do?

Intuit did not admit wrongdoing in the settlement. But the company also has agreed to:

• Refrain from making misrepresentations in connection with promoting or offering any online tax-preparation products

• Enhance disclosures in its advertising and marketing of free products

• Stop requiring consumers to restart tax filings if the consumer exits one of Intuit’s paid products to use a free product instead

"For years, Intuit misled the most vulnerable among us to make a profit. Today, every state in the nation is holding Intuit accountable for scamming millions of taxpayers, and we’re putting millions of dollars back into the pockets of impacted Americans," James said in a statement. "This agreement should serve as a reminder to companies large and small that engaging in these deceptive marketing ploys is illegal."

Contributors: Wyatte Grantham-Philips, Associated Press; Susan Tompor, Detroit Free Press

C. A. Bridges is a Digital Producer for the USA TODAY Network, working with multiple newsrooms across Florida. Local journalists work hard to keep you informed about the things you care about, and you can support them by subscribing to your local news organization. Read more articles by Chris here and follow him on Twitter at @cabridges

This article originally appeared on The Daytona Beach News-Journal: TurboTax lawsuit: How much will Florida TurboTax free taxpayers get?