After pressure from the American Civil Liberties Union, H&R Block has agreed to give $100 coupons or free TaxCut software to all gay couples who incurred additional costs because they were barred from using the company’s online tax service, TaxCut Online.

The settlement follows a March 24 complaint by the ACLU on behalf of Jason Smith and Settimio Pisu, a Connecticut couple who attempted to use the company’s online tax-filing service but were told through the website that “We Don’t Support Connecticut Civil Union Returns.”

Connecticut law makes it illegal to discriminate based on civil union status. ACLU’s March letter demanded that H&R Block stop penalizing gay couples with civil unions who were barred from filing their taxes online. Those couples may now ask for the compensatory package.

The $100 coupon is available from the ACLU, and can be applied toward the costs of future tax preparation expenses with the company for the 2008 tax season. The company has also agreed to direct future tax filers with civil unions to a free online support specialist to help couples complete their taxes.

“We’re pleased that H&R Block has decided to do right by gay couples throughout the country,” said Rebecca Shore , a staff attorney with the ACLU Lesbian Gay Bisexual Transgender Project. “Saying you’ve been civilly united will never be the same as saying you’re married, but at least gay couples will no longer face the prospect of paying more to prepare their taxes.

“No one enjoys doing their taxes,” Smith continued. “But it’s especially annoying when you’re reminded in a not-too-subtle-way that your relationship is considered inferior. “We’re glad H&R Block came through in the end.”

Andrew Schneider, Executive Director of the ACLU of Connecticut added, “While this story has a happy ending, these kinds of problems will continue for gay couples as long as the state insists on barring gay people from marriage.”

Read the letter from H&R Block and other information: