Taxpayers can score one-time payments from $14.95 million filing settlement – and there are three ways to claim

Americans who utilized a do-it-yourself tax service may be eligible for cash from a $14.95 million settlement involving TaxAct.com. This settlement arises from reports indicating that taxpayer information may have been shared with third parties, including major companies like Meta and Google.

Allegations of Privacy Violations

Clients allege that TaxAct failed to adequately protect user privacy by allowing other companies to access their data. Users who filed a tax return and a Form 1040 through the service between January 1, 2018, and December 31, 2022, may qualify for compensation. Although TaxAct denies any wrongdoing, the company opted to settle to avoid the costs associated with further litigation.

Important Deadline Approaches

TaxAct currently offers filing plans ranging from $0 to $99.99, but the deadline to claim your share of the settlement is fast approaching—set for September 11, 2024.

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Who Qualifies for the Settlement?

Americans who filed taxes using TaxAct and completed a Form 1040 may be eligible for a payout. Importantly, even if you did not file your taxes personally, you could still qualify if your spouse filed jointly on your behalf.

Most eligible filers can expect payouts of approximately $18.65, according to the settlement website. Californians who qualify may also receive additional benefits, including free TaxAct services for the 2024 tax year if they choose to use the company again.

Exclusions from the Settlement

Note that anyone who has previously filed an arbitration demand with TaxAct is excluded from the settlement.

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How to File a Claim

Claims can be submitted online or by mail, and individuals can also call the administrators to request a claim form.

Other Class Action Opportunities

Data breaches are a common catalyst for class-action settlements. For instance, a services company that collaborates with telecommunications providers is paying out $4,400 to individuals whose data was exposed.

Additionally, New Yorkers may qualify for compensation following a significant religious rights lawsuit involving two Muslim women who were compelled by police to remove their head coverings for a mugshot. Those eligible could receive nearly $8,000.

If you’re interested in skincare, check for potential payouts from a $9.2 million settlement related to another data breach, with payments reaching $5,000

Also Read: Top beauty brands face lawsuits over hair product concerns

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