TurboTax settlement checks heading to 35,000 Iowans soon

Iowan who were "scammed" into paying for free tax services will begin receiving checks from a 2022 settlement with TurboTax's owner, Intuit, Iowa Attorney General Brenna Bird announced Thursday.

About $1 million will go to the more than 35,000 Iowans who paid to submit their federal tax return, which should be a free service, according to a news release from the Iowa Attorney General's Office. This is only a fraction of the approximately 4.4 million Americans who are owed money from the $141 million settlement.

“Tax season is already stressful enough for many Iowans,” Bird said in a statement. “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.”

Eligible Iowans were contacted through email by the settlement fund administrator, Rust Consulting, according to the release. These Iowans paid to file their federal tax returns with TurboTax for tax years 2016, 2017 and 2018 but were eligible to file for free through the IRS Free File Program.

Iowans will receive about $30 for each year they were "mislead," according to the release. The check will arrive through the mail and there is nothing recipients need to do to receive them.

Those who are eligible to receive a settlement check and don't by mid-June should contact the Iowa Attorney General's office at 888-777-4590.

Noelle Alviz-Gransee is a breaking news reporter at the Des Moines Register. Follow her on Twitter @NoelleHannika or email her at NAlvizGransee@registermedia.com.

This article originally appeared on Des Moines Register: TurboTax settlement checks for federal tax returns going to 35,000 Iowans