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1Clear out junk files and repair common Windows errors2Fix the driver behind crashes, sound loss and screen glitches3Repair Windows errors before they cause bigger problemsTaxAct’s federal online-privacy class settlement received final approval on December 30, 2024, but the court-authorized settlement site says an appeal filed January 2, 2025, is delaying monetary distribution. The deadline to file a claim passed on September 11, 2024. Separately, Connecticut announced a $275,000 state settlement with TaxAct in August 2026; that payment is not compensation for federal class members.
What the TaxAct online privacy lawsuit alleged
The federal case, Smith-Washington, et al. v. TaxAct, Inc., No. 3:23-cv-00830, was brought in the U.S. District Court for the Northern District of California. Users alleged that TaxAct shared or otherwise made accessible personal and financial information to third parties, including Facebook (now Meta) and Google, without permission. TaxAct denied liability and wrongdoing and agreed to settle to avoid the costs and risks of continued litigation. The allegations and settlement terms are described on the court-authorized settlement site and in its FAQ.
In its August 19, 2026 announcement about a separate state matter, the Connecticut Attorney General said its investigation found that TaxAct used Meta and Google tracking technologies for analytics and marketing from January 2018 through December 2022, and disclosed detailed taxpayer financial information. The state listed rounded adjusted gross income, rounded refunds or taxes owed, number of dependents, charitable contributions, and whether users had investment income or mortgage or student-loan interest. Connecticut also said TaxAct’s contract with Meta did not limit Meta’s use or onward sharing of the data, and that TaxAct had not informed taxpayers before sharing it. These are findings described by the Connecticut Attorney General, not findings in the federal class action. Connecticut Attorney General’s announcement.
What is the status of the federal settlement?
The settlement administrator reports that the court granted final approval on December 30, 2024, and that an appeal was filed on January 2, 2025. Its current notice says monetary distribution is delayed until all appeals are resolved, while the settlement remains approved. The available notice does not say that the appeal has ended or that money has been distributed. Check the official settlement site for any new status notice.
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The court’s final approval order explains that, if an appeal is filed, the settlement’s Effective Date follows affirmance with no further right of review, or denial or dismissal of the appeal with no further right of review. The order also makes clear that approval does not establish wrongdoing: “The Settlement and this Order are not admissions of liability or fault by TaxAct or the Released Parties, or a finding of the validity of any claims in the Action or of any wrongdoing or violation of law by TaxAct or the Released Parties.” Federal final approval order, December 30, 2024.
Who was included in the federal class?
The nationwide class generally covered natural persons who used TaxAct’s online do-it-yourself consumer Form 1040 product and filed a return from January 1, 2018, through December 31, 2022, using a U.S. postal address. A related nationwide class covered a spouse whose joint return was filed through that online product during the same period. The settlement also includes certain California subclasses. See the administrator’s eligibility FAQ and settlement site for the complete class definitions.
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- Generally excluded: people who used only downloadable DIY Form 1040 software, professional TaxAct products, or TaxAct’s online business filing products.
- Arbitration exception: the settlement site describes an exception for people who had filed certain arbitration demands by January 9, 2024, unless they timely opted in.
These are class-definition rules, not an indication that claims remain open. A person’s eligibility depended on the product and filing circumstances set out in the settlement documents.
Can you still file a claim or receive a benefit?
No new claim opportunity is indicated by the current settlement notice. The deadline to submit a claim or opt out was September 11, 2024. The administrator says only a timely, properly completed claim form approved by it qualified a class member for cash and free TaxAct Xpert Assist. That historical claim deadline has passed.
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A qualifying class member who did nothing did not receive those benefits and, if they did not opt out, could still be bound by the settlement’s release. The settlement site says free Xpert Assist became available to authorized claimants beginning January 7, 2025. For questions about an existing claim or the appeal, use the contact and update information on the settlement administrator’s site.
How the Connecticut settlement differs
Connecticut’s $275,000 agreement is a separate state settlement announced by the Attorney General on August 19, 2026. It is not part of the federal class fund and is not a payment to federal class members. The state announcement says TaxAct must establish a review committee, adopt written policies for third-party tracking technology, keep records of tracked data points, conduct regular tag scans, and undergo two independent audits. Connecticut Attorney General’s announcement.
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| Settlement | Who brought it | Amount reported | Who receives relief | Main remedy |
|---|---|---|---|---|
| Federal class action, Smith-Washington v. TaxAct | Class members in federal court in the Northern District of California | $14.5 million, as reported by the Connecticut Attorney General in its August 19, 2026 announcement | Eligible class members who submitted an approved, timely claim could receive cash and Xpert Assist; payment is delayed pending appeals, according to the administrator | Class settlement benefits and release of claims under the settlement terms |
| Connecticut state settlement | Connecticut Attorney General | $275,000, as announced August 19, 2026 | Payment to the state, not class-member compensation | Tracking governance requirements, records, regular scans, and independent audits |
The $14.5 million figure is reported by Connecticut; it is not stated in the cited federal approval-order excerpt or the settlement administrator’s current page. The state announcement describes TaxAct as having entered that class settlement in December 2024.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What TaxAct says about privacy controls now
TaxAct’s privacy notice, marked last updated September 15, 2026, describes current company practices and lists a “Do Not Sell or Share My Personal Information” control. It also says Global Privacy Control can opt a user out of cookie-based sale or sharing and targeted advertising, and that it must be enabled in each browser. These are present-day policy statements; they do not establish what tracking operated or what information was shared during the 2018–2022 class period. TaxAct Privacy Notice.
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