The consumers who made the taxes in TaxAct.com they could receive payments from a $14.95 million TaxAct settlement that resolves claims that were made about privacy violations by the tax website.
This class action settlement will benefit people with a U.S. zip code who used a TaxAct online consumer Form 1040 tax return product and filed a tax return using the product between January 1, 2018 and December 31, 2022.
$14.95M Settlement for TaxAct Users: What’s This About?
The agreement also provides benefits to a joint filing class of individuals with a U.S. zip code whose spouse used a TaxAct online consumer Form 1040 tax return product and filed a tax return using the product between January 1, 2018 and December 31, 2022.
Included in the agreement are two subclasses of California state members of the nationwide class or the nationwide married class, filed jointly with California state mailing addresses.
In the class action, it is explained that, TaxAct violated federal and California state privacy laws by sharing user information with third parties, such as Meta and Google.
The plaintiffs in the case argue that TaxAct shared the sensitive personal and financial information, which they entered when filing their taxes.
TaxAct Privacy Violation Settlement — The Company Denies Allegations
TaxAct is an online tax preparation service. They have not admitted any wrongdoing, but agreed to pay $14.95 million to settle the privacy class action.
Under the terms of the TaxAct settlement, group members can receive a cash payment of approximately $18.65, consumers who used TaxAct products in the state of California and those who filed a joint return can receive larger payments.
In addition to receiving a cash payment, claimants who prepare their 2024 tax return using a TaxAct product will receive complimentary Xpert Assist. The deadline for exclusion is September 11, 2024, the deadline for objection is August 12, 2024.
The final approval hearing of the agreement is scheduled for November 21, 2024.

Who Is Eligible to Claim a Share of the Settlement?
Nationwide class: Individuals who have a U.S. ZIP code that they used on a TaxAct online consumption Form 1040 tax return product and made a tax return using the product between January 1, 2018 and December 31, 2022.
Married Class filed jointly: People who have a U.S. ZIP code and whose spouse used a TaxAct online consumer Form 1040 tax return product and filed a tax return using the product between January 1, 2018 and December 31, 2022.
California Underclass: Members of the national class or the national married class submitted a joint class with California mailing addresses.