RALEIGH, N.C. (WNCN) – North Carolina citizens who were forced to pay Turbo Tax for filing their taxes are now entitled to getting that money back.

Attorney General Josh Stein, along with 50 other attorneys general, won a more than $4 million settlement from Intuit Inc., the parent company for TurboTax. Turbo Tax is accused of deceiving North Carolinians into paying for tax services that should have been free.

In total, the company will pay $141 million in restitution to millions of consumers across the nation. The company will also be forced to stop its “free, free, free” ad campaign.

Stein’s office said the advertisement lured people in for free tax preparation services only to have them pay for the services in the end.

“I’m pleased that nearly 140,000 North Carolinians who were affected will get back some of the money they unnecessarily paid to file their taxes. It doesn’t matter how big or small a company is – deception is not only unacceptable, it’s against the law,” said Attorney General Josh Stein.

About 139,000 North Carolinians who filed federal taxes through TurboTax between 2016 and 2018 are eligible for about $30 in restitution.

Stein’s office said the dollar amount represents about 60 percent of the average annual fees consumers paid to Intuit.

People who are eligible will automatically receive notices and a payment. 

Intuit withdrew from the IRS Free File program in July 2021.

Stein’s office reported Intuit has also agreed to reform its business practices, by:

  • Refraining from making misrepresentations in connection with promoting or offering any online tax preparation products;
  • Enhancing disclosures in its advertising and marketing of free products; 
  • Designing its products to better inform users whether they will be eligible to file their taxes for free; and
  • Refraining from requiring consumers to start their tax filing over if they exit one of Intuit’s paid products to use a free product instead.