TurboTax Settlement 2026, Payouts, Status, and Eligibility

The TurboTax multistate settlement with Intuit is fully approved and paid out. Intuit paid $141 million to roughly 4.4 million consumers who were charged for tax filing in 2016, 2017, or 2018 despite qualifying for the free IRS Free File program. Most checks were mailed in May–June 2023. No new claim form exists for this settlement. If you missed your payment, it may be held as unclaimed property in your state.

Key Dates at a Glance

Settlement Status: What You Need to Know Right Now

This settlement is final and fully approved. Intuit has already paid the $141 million, and the settlement administrator, Rust Consulting, distributed checks to eligible consumers in May and June 2023. The official settlement website is www.AGTurboTaxSettlement.com.

As of early 2026, the main distribution window has closed. If you were eligible but never received a payment, your money may have been transferred to your state’s unclaimed property division. You can search for it at MissingMoney.com by looking for funds listed under “Rust Consulting” or “Intuit Settlement.”

A separate and newer legal matter — involving alleged sharing of sensitive user data with advertisers like Meta and Google via tracking pixels — is currently in early litigation. That case involves different law firms, different claims, and no approved settlement yet as of February 2026.

What the Lawsuit Was About

State attorneys general from all 50 states and the District of Columbia launched a joint investigation into Intuit after reports emerged that TurboTax used deceptive tactics to push low-income taxpayers away from free filing options and into paid products.

Specifically, Intuit purchased paid search ads that redirected people looking for the free IRS Free File program to TurboTax’s paid “freemium” product. Intuit also blocked its own IRS Free File landing page from appearing in search engine results during the 2019 filing season. The settlement resolved these allegations without Intuit admitting wrongdoing.

Settlement Amount Breakdown

Here is how the $141 million settlement fund was structured and distributed, based on information from official state attorney general announcements:

Total Settlement Fund: $141,000,000 Eligible Claimants: Approximately 4,400,000 consumers Administrator: Rust Consulting Claim process: Automatic — no filing required

Because this was a state attorney general enforcement action rather than a traditional private class action, attorney fees were not deducted from consumer payments in the same way a private lawsuit would work. The attorneys general enforced the settlement on behalf of their states, and the full $141 million was directed toward consumer restitution.

Approximate per-consumer payout: The $141 million divided across roughly 4.4 million consumers yields a base average of about $32 per consumer per qualifying year.

Payment Calculation Examples

Each consumer’s payment was based on how many of the three qualifying tax years (2016, 2017, 2018) they paid TurboTax when they were eligible to file for free.

Assumption used in all examples: Approximately $29–$30 per qualifying year, consistent with figures confirmed by multiple state attorneys general. The maximum total was approximately $85 for consumers who qualified in all three years.

High Scenario — Three Qualifying Years

• Tax years qualified: 2016, 2017, and 2018
• Payment per year: ~$29
• Total payment: approximately $85–$87

This consumer used TurboTax paid products in all three eligible years when their adjusted gross income (AGI) was below the Free File threshold each year (roughly $64,000 in 2016, scaling up to $73,000 by 2022 standards).

Mid Scenario — Two Qualifying Years

• Tax years qualified: 2017 and 2018
• Payment per year: ~$29
• Total payment: approximately $58

This consumer used TurboTax in two of the three eligible years while qualifying for Free File, perhaps switching to a different service or filing method in the third year.

Low Scenario — One Qualifying Year

• Tax years qualified: 2016 only
• Payment per year: ~$29
• Total payment: approximately $29–$30

This is the most common scenario. The majority of the 4.4 million recipients fell into a single qualifying year, which is why most consumers received a check in the $29–$30 range.

Who Was Eligible

To qualify for the original 2022–2023 settlement, a consumer had to meet all of the following:

• Paid Intuit to file their federal tax return through TurboTax
• Filed for tax year 2016, 2017, or 2018
• Was eligible at that time for the IRS Free File program (meaning their AGI fell below the applicable income threshold for that year)

Who was NOT eligible:

• Consumers who used TurboTax’s actual free tier and paid nothing
• Consumers whose income exceeded the Free File AGI threshold in all three years
• Consumers who filed only state returns, not federal returns, through TurboTax
• Consumers who used other tax preparation software or services

How Payments Were Made — And What to Do Now

Unlike most class action settlements, eligible consumers did not need to file a claim. Rust Consulting used Intuit’s internal records to identify who qualified and mailed checks directly. Consumers received an email notification before their check arrived.

If you think you were eligible but never received a check:

1. Search your name on MissingMoney.com, the official multi-state unclaimed property database.
2. Look for a listing under “Rust Consulting” or “Intuit.”
3. Follow your state’s unclaimed property claim process to recover the funds.
4. You can also visit your specific state’s unclaimed property website directly.

Do not contact Intuit about this settlement. Intuit directed all questions to Rust Consulting and the official settlement website.

The Separate TurboTax Privacy Case (2024–2026)

A different legal action is underway as of February 2026. Law firms including Labaton Keller Sucharow allege that TurboTax used third-party tracking tools from companies like Twilio to collect and share sensitive user data — including financial information — with advertisers, without users’ knowledge.

This case is not a court-approved settlement. It is in the early litigation or mass arbitration phase. Some firms estimate potential recoveries of up to $2,500 per user, but no final settlement has been reached, and no payout amounts are guaranteed. Eligibility is generally limited to residents of specific states, and the claims involve TurboTax usage from roughly 2022 to 2025. If you are interested in this separate matter, you can look up participating law firms’ intake portals directly — but be aware you are joining a legal action, not claiming a confirmed settlement fund.

Frequently Asked Questions

Can I still file a claim for the $141 million TurboTax settlement? No. The claim window for the original settlement is closed. Checks were mailed automatically in May and June 2023. If you missed your payment, check your state’s unclaimed property database.

How much will I get from the TurboTax settlement? Most eligible consumers received between $29 and $30. Those who qualified for all three tax years (2016, 2017, and 2018) could have received up to approximately $85.

Do I need to do anything to get my TurboTax settlement money? For the 2022 settlement, no action was required — payments were automatic. For any new privacy-related lawsuits, you may need to register with a participating law firm.

What years does the TurboTax settlement cover? The original multistate settlement covered tax years 2016, 2017, and 2018 only.

What income level qualified for the settlement? You had to be eligible for the IRS Free File program in those years, which generally meant your adjusted gross income was below approximately $64,000 for 2016, with the threshold rising slightly in subsequent years.

Who administered the TurboTax settlement? Rust Consulting was the official settlement fund administrator. The official website was www.AGTurboTaxSettlement.com.

Is there a new TurboTax lawsuit in 2026? Yes, there are separate lawsuits alleging that TurboTax shared user data with advertisers. These are in early stages with no approved settlement as of February 2026.

I received a phishing email about the TurboTax settlement. Is it real? Be careful. The only official email communications came from Rust Consulting and matched the domain associated with the official settlement site. Attorneys general warned about scam emails impersonating the settlement administrator.

Is the TurboTax settlement taxable? Settlement payments received as consumer restitution may or may not be taxable depending on your individual circumstances. Consult a tax professional if you are unsure how to treat settlement income on your return.

Did TurboTax admit wrongdoing? No. Intuit agreed to pay the $141 million and reform its business practices but did not admit to any wrongdoing as part of the settlement.

Mandatory Disclaimer

This article is for informational purposes only and does not constitute legal or tax advice. Settlement terms, eligibility, and payment amounts are subject to court approval and may change. For official information, always refer to the settlement administrator or the official settlement website at www.AGTurboTaxSettlement.com.

AllAboutLawyer.com is not a settlement administrator and is not affiliated with Intuit, Rust Consulting, or any state attorney general’s office. Do not submit personal information to this website to claim a settlement payment.

Sources: California AG Office (May 2023), New York AG Office (May 2023), Illinois AG Office (May 2023), Texas AG Office (May 2023), CNBC (May 2023), official settlement website www.AGTurboTaxSettlement.com.

About the Author

Sarah Klein, JD, is a licensed attorney and legal content strategist with over 12 years of experience across civil, criminal, family, and regulatory law. At All About Lawyer, she covers a wide range of legal topics — from high-profile lawsuits and courtroom stories to state traffic laws and everyday legal questions — all with a focus on accuracy, clarity, and public understanding.
Her writing blends real legal insight with plain-English explanations, helping readers stay informed and legally aware.
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