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

AMERICANS who used a do-it-yourself tax service may be entitled to cash from a $14.95 million settlement.

It comes after reports that taxpayers who used TaxAct.com to file may have had their information shared with third parties.

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Those include companies like Meta and Google .

Clients alleged the site failed to protect user privacy when it allowed other companies to access user’s data.

TaxAct users who filed a tax return and a form 1040 through the service between January 1, 2018, and December 31, 2022, may qualify.

TaxAct currently offers filing plans from $0 to $99.99.

The company denied any wrongdoing but settled to avoid the costs of more litigation.

But the deadline is fast approaching — it’s just days away on September 11, 2024.

WHO QUALIFIES?

Americans who filed taxes using TaxAct and who filled out a 1040 may qualify for payment .

However, even if you personally did not file your taxes, you might get money.

If your spouse filed jointly on your behalf, you may also qualify.

Payouts will be roughly $18.65 for most filers, according to the settlement website .

Californians who qualify may be able to get additional benefits.

On top of a payout, you may also get free tax service with TaxAct for the 2024 tax year, if you choose to file with the company again.

Anyone who has previously filed an arbitration demand with the company is excluded from the settlement.

Claims can be filed online or by mail. You can also call the administrators to request a form.

What's a class-action settlement?

Class action lawsuits offer groups of people, or 'classes,' a way to band together in court.

These suits are often brought by one or a few people who allege a company or other entity has wronged a large group of people.

When a suit becomes a class action, it extends to all “class members,” or people who may have similar complaints to those who filed the suit.

Companies often settle class actions – offering payment to class members who typically waive their right to pursue further legal action by accepting money.

These payout agreements frequently include statements by the defendant denying wrongdoing. Companies tend to settle class actions to avoid the costs of further litigation.

Pollution, discrimination, or false advertising are a few examples of what can land a class action on a company’s doorstep.

MORE CLASS ACTIONS

Data breaches are a common reason for class-action settlements.

For example, a services company that works with telecommunications providers is paying out $4,400 to some whose data was exposed.

But class actions happen for a variety of reasons.

New Yorkers could qualify for payment after a major religious rights lawsuit .

The settlement came after two devout Muslim women were forced by police to remove their head coverings for a mugshot.

Those who qualify could get nearly $8,000.

Check if you can get cash from a $9.2 million skincare settlement.

Another data breach led to payments of $5,000.