Legal settlements are reported as "Other Taxable Income." You may or may not receive a 1099-MISC reporting the income. Regardless, this is how you should enter it in TurboTax: Click on Federal Taxes > Wages & Income [In TT Self-Employed: Personal > Personal Income].
Full Answer
What are the terms of the TurboTax settlement?
The terms of the settlement require TurboTax pay $141 million in restitution to customers who were told they had to pay to file despite qualifying for the version of TurboTax offered through the IRS Free File program, which the company offered at the time. Anyone making less than $73,000 a year is eligible for free filing through IRS Free File.
Did TurboTax steal millions from taxpayers?
You may have heard on the news that TurboTax owner Intuit, Inc. has agreed with the attorneys general of all 50 states to pay $141 million in restitution for allegedly tricking millions of taxpayers into paying to file their taxes when they were eligible to do so for free.
What does the $141 million settlement with Intuit mean for TurboTax?
Attorneys general for all 50 states and the District of Columbia announced on May 3 they had reached a $141 million settlement with Intuit, the creator of TurboTax, over deceptive practices regarding its free tax filing services.
Did you have to pay to file taxes with TurboTax?
Intuit is providing restitution to nearly 4.4 million people in all 50 states who used TurboTax's Free Edition between tax years 2016 and 2018. These people were told they had to pay to file, even though they qualified for the IRS Free File program, a partnership between the agency and major tax prep software companies.
How do I get my money from TurboTax settlement?
0:431:30No action required to receive money from TurboTax settlement - YouTubeYouTubeStart of suggested clipEnd of suggested clipNow if you are one of those people. And you file between the 2016. 17 or 18. Tax years you are nowMoreNow if you are one of those people. And you file between the 2016. 17 or 18. Tax years you are now eligible for a 30 check and you don't have to do anything to get it simply get a notice in the mail.
How much will you get from TurboTax settlement?
How do I file a settlement claim with TurboTax? If you qualify, you will automatically receive a direct payment of approximately $30 for each year that they were deceived into paying for filing services, according to James' office.
What's going on with the TurboTax lawsuit?
Under terms of a settlement signed by the attorneys general of all 50 states, Intuit Inc. will suspend TurboTax's “free, free, free” ad campaign and pay restitution to nearly 4.4 million taxpayers.
How long does it take to get a check from TurboTax?
21 daysMost refunds will be issued in less than 21 days. You can start checking the status of your refund within 24 hours after you have e-filed your return. Remember, the fastest way to get your refund is to e-file and choose direct deposit.
Is TurboTax giving money back to customers?
New York Attorney General Letitia James announced a legal settlement Wednesday in which Intuit, the company that owns popular tax preparer TurboTax, agreed to provide $141 million in restitution to customers it "unfairly charged," according to a news release.
Will I be getting a check from TurboTax?
Eligible customers will automatically receive notices and checks in the mail.
What law firm is handling the TurboTax settlement?
OAKLAND – California Attorney General Rob Bonta today, as part of a coalition of 51 attorneys general and with the Los Angeles City Attorney and Santa Clara County Counsel, announced a $141 million settlement against Intuit, resolving allegations that the California-based company deceptively advertised its “free” ...
Why did TurboTax refund some users?
Millions of Americans will receive refunds from TurboTax because they were duped into paying for tax prep that was supposed to be free, according to a nationwide settlement announced by the New York attorney general's office.
Is the TurboTax settlement real?
The company was accused of using "deceptive tactics" to steer working class customers away from their free program. TurboTax, a California-based tax filing company owned by Intuit, has agreed to a settlement totaling $141 million to be distributed to customers across the United States.
How do I check the status of my TurboTax refund?
We'll help you track your tax refundIf you. e-filed. with TurboTax. Sign in to check your federal return. ... Track your federal. tax refund. Once your return's accepted, you can track your refund. If you don't receive it within 21 days, contact the IRS. ... Track my. state refund. We'll help you find your. state's instructions.
What bank does TurboTax use?
Santa Barbara Tax Products Group, LLC (SBTPG) is the bank that handles the Refund Processing Service when you choose to have your TurboTax fees deducted from your refund.
Why hasn't TurboTax sent my refund?
shows “Refund Sent”, the IRS has sent your tax refund to your bank for direct deposit. If you don't receive it after 5 business days, then you should contact your bank. If it has not been received after the 5th business day, then you would need to contact the IRS directly.
Is the lawsuit against TurboTax real?
TurboTax maker will pay $141M in settlement over ads for free tax-filing Under a settlement signed by the attorneys general of all 50 states, Intuit Inc. will suspend TurboTax's "free, free, free" ad campaign and pay restitution to nearly 4.4 million taxpayers.
How do I know if TurboTax was paid?
Log into your TurboTax account. If you have filed, you should be able to scroll down and click on View Order Details. This will provide you with an invoice of payment for your return.
How do I sue someone on TurboTax?
However, most of the steps are very similar: Send TurboTax your demand letter....*Note: The address you should use will be listed in your individual agreement.Fill out any required forms for your state. ... Formally filed the documents with the court. ... Now you have to legally serve TurboTax.More items...
How accurate is TurboTax?
100% Accurate, Expert-Approved Guarantee If you pay an IRS or state penalty (or interest) because of an error that a TurboTax tax expert or CPA made while providing topic-specific tax advice, a section review, or acting as a signed preparer for your return, we'll pay you the penalty and interest.