If you filed your federal taxes through TaxAct’s online do-it-yourself product between January 1, 2018, and December 31, 2022, you may be entitled to a payment from the TaxAct settlement, a $14.95 million class action fund resolving claims that the company shared users’ tax and financial data with Meta and Google. A federal judge gave final approval in December 2024, but a notice of appeal filed days later has put payouts on hold, and as of June 2026 the case is pending before the Ninth Circuit Court of Appeals. No money has been distributed.
Who Qualifies
The settlement covers two overlapping groups of TaxAct users, each with a California subclass that receives a larger share:
- Anyone with a U.S. postal address who used TaxAct’s online do-it-yourself consumer Form 1040 product to file a return between January 1, 2018, and December 31, 2022.
- Anyone whose spouse used that same product to file a joint return during the same period.
A few groups are excluded. If you only used TaxAct’s downloadable software, its professional products, or its business tax return products, you are not in the class. TaxAct employees and affiliates during the relevant period, plaintiffs’ counsel and their staff, and the presiding judge and judicial staff are also out. Anyone who had already filed an arbitration demand against TaxAct as of January 9, 2024, is excluded unless they opted in by filing a claim.1TaxAct Class Settlement. Long Form Notice
The claim filing window has closed. The deadline to submit a claim was September 11, 2024, and the same date was the deadline to opt out. Objections were due August 12, 2024.2TaxAct Class Settlement. Short Form Notice If you did not file a claim before that date, you cannot join now.
How Much You’ll Receive
The settlement splits the fund using a point system that weights claims by state of residence and filing status:
- California class members: 6 points
- Nationwide class members outside California: 3 points
- California married-filing-jointly subclass: 2 points
- Nationwide married-filing-jointly class outside California: 1 point
After the claim deadline, the administrator divides the available fund by the total points claimed and pays each person according to their share.1TaxAct Class Settlement. Long Form Notice
Based on an estimated 5% claim rate, the projected individual payment is about $18.65, with California residents and joint filers receiving somewhat more.2TaxAct Class Settlement. Short Form Notice The final amount depends on how many valid claims came in. Claimants who returned to TaxAct to prepare a 2024 tax return were also eligible for complimentary access to TaxAct’s Xpert Assist service.3Kiplinger. TaxAct Class Action Settlement
The $14,950,000 fund also covers attorneys’ fees and costs (up to 25% of the cash fund plus up to 25% of the value of redeemed Xpert Assist, capped at $5,800,000 in redeemed value) and service awards of up to $10,000 for each of the five lead plaintiffs. A separate budget of up to $2,500,000 covers notice and administration, and any unused portion of that budget goes back to class members.2TaxAct Class Settlement. Short Form Notice
Why Payments Haven’t Been Sent
Judge Vince Chhabria of the Northern District of California granted final approval on December 30, 2024.4GovInfo. Smith-Washington v. TaxAct, Inc., Order Granting Motion for Final Settlement Approval A notice of appeal was filed on January 2, 2025. As of June 2026 the appeal remains pending at the Ninth Circuit, and no settlement payments will be issued until it is resolved.5Claim Depot. TaxAct $14,950,000 Settlement for Unauthorized Data Sharing Claims If you filed a valid claim by the September 2024 deadline, your claim is preserved; you just have to wait.
What the Lawsuit Alleged
The case, Smith-Washington v. TaxAct, Inc., Case No. 3:23-cv-00830, was filed in February 2023 in the Northern District of California. Plaintiffs alleged that TaxAct shared users’ personal and financial information with third parties, including Meta and Google, without permission. According to the underlying investigation that led to the suit, TaxAct’s website used the Meta Pixel to transmit information such as filing status, adjusted gross income, federal refund amounts, and the names of dependents to Meta’s advertising systems, and sent financial data (but not names) to Google Analytics.6The Markup. Tax Filing Websites Have Been Sending Users’ Financial Information to Facebook TaxAct settled without admitting wrongdoing.3Kiplinger. TaxAct Class Action Settlement The company has said it no longer uses the Meta Pixel within its tax product and now offers a cookie preference center for users to opt out of tracking for targeted advertising.7TaxAct. Do Not Sell or Share My Personal Information
Will You Owe Taxes on the Payment
Probably yes. Under IRS rules, whether a settlement payment is taxable depends on what it replaces. Damages for personal physical injuries are generally not taxable, but payments for non-physical injuries such as privacy violations, emotional distress unrelated to a physical injury, or lost income are typically includable in gross income.8IRS. Tax Implications of Settlements and Judgments Because this settlement compensates for alleged privacy violations, payments are likely taxable. You may receive a Form 1099 from the settlement administrator and should report the amount on your return.9IRS. Settlements – Taxability For a payout in the range of $18.65, the tax impact is small, but the reporting rule is the same regardless of amount.
How to Check on Your Claim
Kroll Settlement Administration LLC is handling claims. You can reach the administrator at (833) 425-9910 or by email at info@TaxActClassSettlement.com. Written correspondence goes to Smith-Washington v. TaxAct, Inc., c/o Kroll Settlement Administration LLC, PO Box 225391, New York, NY 10150-5391.1TaxAct Class Settlement. Long Form Notice If you filed a claim, keep your confirmation and watch for updates once the Ninth Circuit rules on the appeal.