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AG secures settlement funding for Delawareans scammed by TurboTax

Delaware Public Media

Over $400,000 will be reimbursed to Delawareans who were swindled by TurboTax.

Attorney General Kathy Jennings secured the funding Thursday as part of a nationwide settlement with the owner of TurboTax, Intuit Inc. The company will pay out a total of $141 million to consumers across the country for the scam.

Free tax services were advertised through TurboTax, but customers for tax years 2016-2018 reported sudden charges when it came time to file.

Jennings described Intuit’s tactics as deceptive and unfair to low-income Delawareans. A multi-state investigation also described their marketing as “aggressive” – repeating the word “free” dozens of times within a 30 second ad.

There are two free versions of TurboTax – one through the IRS Free File Program for members of the military and taxpayers earning roughly $34,000 or less – and one for taxpayers with simple returns, which Intuit defines as only a 1040.

The investigation also determined that Intuit used confusingly similar names for both its IRS Free File product and its commercial “freemium” product.

Those eligible come out to only one-third of US taxpayers.

Per the settlement, Intuit has also agreed to reform its business practices and be transparent in its advertising and marketing.

Rachel Sawicki was born and raised in Camden, Delaware and attended the Caesar Rodney School District. They graduated from the University of Delaware in 2021 with a double degree in Communications and English and as a leader in the Student Television Network, WVUD and The Review.