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šµ Those Taxes Wonāt File Themselves (For Free)
Class actions helped TurboTax read their own disclaimers (in commercials now)
Good afternoon. Tax season is back upon us! Surprise reminder to those without a calendarā¦ Today weāre digging into how a class action lawsuit helped tax-filing software giant TurboTax start reading their own disclaimers (literally in their commercials) and stop hiding the āfreeā plan to serve up more ways to charge you. Letās dig in.
In Todayās Newsletter:
š§¾ Donāt let taxes take you downā¦ like Al Capone or TurboTax Free Edition.
šļø What else weāre checking out: Newsletter recs to round out the week.
šļø Case Docket: settlements ready for you to file: Visa Mastercard, Verizon Admin Fee, Chicken Price Fixing are all live ā file now before their gone!
š„” Thursday Takeaways: Our weekly list to help fuel your growth!
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SETTLEMENT SPOTLIGHT
šµ Those Taxes Wonāt File Themselves (For Free)
šŖ Weāre shining a light on a settlement that drove changes for good.
Tax season typically brings its share of headache, heartache, and wallet-ache ā especially to those who start three hours before the deadline, have a shoddy wifi connection and think they are using a āfreeā software planā¦ Sounds familiar (looking at you recent college grads š)?
However, allās (not) fair in taxes and filingā¦ or it wasnāt when it came to thinking you were using a free version, only to get slapped with having to pay a bill at the end. Not to worry, you werenāt alone. A significant shake up ($141 million worth) came knocking on the tax filing software world.
What Happened?
ProPublica dropped an article revealing TurboTaxās sneaky move of burying its free file page from search engines. Shortly after, the FTC knocked on Intuitās door, accusing TurboTax of falsely labeling its products as "free" when many couldn't even use it during the 2016-2018 tax seasons. Turns out, if you had a 1099 gig or farmed for a living, tough luck. Based on 2020 data, about two-thirds of taxpayers were left puzzled by TurboTax's notion of "free."
Per CNBC, 70% of taxpayers (~100 million Americans) are eligible to file their taxes for free, but a whopping 3% used the IRS Free File programā¦ I guess it depends who you ask because according to TurboTax, only about 37% of taxpayers qualify for their free filing. Something seems off there. š¬
So, It was an Easy Fight?
Not exactly. TurboTax did what any founding member of the IRS Free File program would do ā in capitalist fashion they opted out of the program altogether and made sure to call the FTCās argument ājust not credible.ā But after a quick hiatus starting in 2021, TurboTax Free Edition is back.
Payouts En Routeā¦ Automatically!
Starting in February 2024, Intuit began sending out checks for the $141 million settlement reached in 2022. Normally, we'd nudge you and say ālike filing your taxes, remember to file your class action settlements (they usually take 5 mins), but in this case, Intuitās got you covered.
They're automatically sending checks to those affected with no filing necessary, since they already have all your info (because they literally have ALL of your taxable infoā¦).
What Else Changed?
Besides no longer hiring engineers to bury the Free Edition 12 ft deep (double the legal depth), TurboTax has released a new bombardment of commercials spelling out how those with āsimpleā tax situations and file with them for, you guessed it, free. Those of you that still have (or mooch off your parentsā) cable provider can back me up on the number of commercials.
In the End
Moral of the story is that class actions can do more than one thing. In this scenario, they helped both put money back in your pocket AND changed company practices (like hiding free editions from customers and changing their marketing practices), which is a pretty sweet win in our books.
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Claims Closed
If you filed your Pork Purchaser Antitrust settlement claim with us, we appreciate you! Weāll be sure to keep you updated as the payout process starts in the next few months ā stay tuned.
WEāVE GOT RECS
šļø What Else Weāre Checking Out
These donāt get us paid, weāre just enjoying and recommending them to you.
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WHAT ELSE IS GOING ON
šļø Case Docket
More cases that could be affecting you! Click on any of these below or check out our website for our full list of open settlements.
ROCKINā DOWN THE HIGHWAY (Open and filing claims!)
BUSINESS FILINGS:
š³ Visa & Mastercard ($5.54B settlement) Your biz may have paid excessive fees for accepting Visa or Mastercard swipesā¦
PERSONAL FILINGS:
šµ Verizon Wireless ($100M settlement) Verizon may have been charging customers extra āadmin feesā every monthā¦
š Buy Raw Chicken? ($181M settlement) You may have been overcharged by some of the biggest names in the chicken gameā¦
NOT QUITE RIPE FOR THE PICKINā (Not open for claims, yet)
PERSONAL FILINGS:
š©ļø Fly Recently? ($60M-so farā¦) American, Delta, Southwest and United may have overcharged you for flights over the years...
š Search in Incognito? (~$5B settlement) Google may have tracked yours (+ Mās of other Americans) data while you were browsing privately...
š ļø Sell Your House? ($208.5M settlement) This is what we just talked about above!
š„” THURSDAY TAKEAWAYS
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Weāre all trying our best to be smart people and make responsible choices here. Nothing in this newsletter is legal or financial advice and content is created for informational and educational purposes only. If you are looking for legal and/or financial advice, help yourself out and hire a professional. We appreciate you checking out our newsletter and look forward to bringing more exciting (and dollar filled) settlement opportunities to your inbox! š¤š¤š¤
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