TurboTax is one of the most popular tax preparation software products available. It offers different features at different pricing levels, so figuring out how much TurboTax costs depends on whether your income situation is simple or complex.
TurboTax’s costs in 2024 will vary based on the complexity of the return and any pricing specials its parent company, Intuit, may run during tax season. People with simple returns may be able to use the free software, but people with investments, rental properties or who work in multiple states, for example, may have to look into the pricing levels of TurboTax’s full-service products.
An overview of TurboTax
There’s a reason why TurboTax is so popular. Its software uses plain language as it guides users through their tax returns and makes it easy for people who have limited understanding of taxes to file. The software uses an interview-style process to ask the user questions as it walks you through all the tax forms necessary to file your return. A banner at the top shows you where you are in the process.
“This software has a friendly interface and seems to have really perfected the interview-style interface,” said Karla Dennis, an enrolled tax agent and founder of KDA, an accounting and tax services firm.
The tax preparation software also offers features like free Internal Revenue Service (IRS) audit support, an active online forum and a maximum refund guarantee. It also provides a range of refund options, depending on the plan chosen, she said.
Steven Crews, a mortgage broker, said he uses TurboTax. He agreed the software is easy to use since it guides people through the process. He said it’s best for people who have straightforward tax returns, like salaried and hourly employees, or someone with two jobs. It’s also good for people whose tax returns include rental property income. People with complicated returns, such as those who are self-employed or have multiple income streams, may be better off paying up for professional help, he suggested.
“The help of a tax professional could provide more insights and potentially save you more taxes than the cost of their services,” he said.
Dennis said TurboTax also offers real-time support through TurboTax Live, with options for assisted preparation or having a tax professional complete your return. This service is available in assisted and full-service versions, typically starting at $89, though the assisted version may be available at no cost for some filers.
TurboTax pricing breakdown
How much it costs to file taxes with TurboTax depends on the software package you buy. There is a free edition for simple tax situations, which includes both federal and state filings, but TurboTax’s pricing and packages vary as the complexity of your tax situation increases.
Federal e-filing is free, up to a certain amount, but state e-filing costs an additional $20 for each of TurboTax’s do-it-yourself options, based on the date when you e-file, as of February 2024. Here’s a breakdown of how much it costs to use the various editions of TurboTax:
| Product edition | Cost | Features |
|---|---|---|
Free | $0 | Covers W-2 income, standard deduction, limited investment income, earned income tax credit & child tax credit |
Basic | $40 | Includes five federal e-files (state download and e-file cost extra) but does not give tips on deductions nor checks for potential audit triggers |
Deluxe | $70 | Guides you through tax deductions and credits, includes five federal e-files and one state download, but state e-file costs extra |
Premier | $105 | Recommended for people with investments and rental property, includes five federal e-files and one state download, but state e-file is extra |
Home & Business | $120 | Recommended for self-employed people, includes five federal e-files and one state download, but state e-file is extra |
Comparing TurboTax with other tax software
Dennis said aside from H&R Block, which she said is a strong competitor to TurboTax, other brands such as TaxAct and Credit Karma Tax, another Intuit offering, are decent software, ”but the customer service with Turbo Tax … makes the extra expense worth it in comparison to others that may be a bit less expensive.”
For a breakdown of cost differences between TurboTax and other providers, check out our guide to the best tax software options of 2024.
Pros and cons of using TurboTax
TurboTax is popular for a reason, although its cost can be a concern for budget-conscious taxpayers, Dennis said.
Pros
- Intuitive, user-friendly interface: Makes it easy for users to navigate through the tax filing process
- Comprehensive coverage: Offers a wide range of options for different tax situations, from simple to complex
- Excellent support and guidance: Provides detailed explanations of tax concepts and thorough guidance throughout the process
- Live expert help: Offers the option to get live, on-screen help from a tax professional (additional fees may apply)
- Accuracy guarantee: TurboTax will pay penalties and interest if there’s a calculation error
Cons
- Cost: Generally pricier than other tax software, especially for the more complex versions that are needed to cover investments, rental properties or self-employment
- Upselling: Frequently prompts users to upgrade to more expensive services, essentially giving a sales pitch inside the software
Frequently asked questions (FAQs)
Included features vary depending on the type of package purchased, but generally, you get free federal tax e-filing. State e-file costs extra.
In February 2024, TurboTax Full Service starts at $89 for Form W-2 and Form 1040 filing, while state filing costs more. Prices will vary depending on specials or other deals, and TurboTax makes it clear that prices are subject to change without notice.
Yes, TurboTax offers a very basic free e-file for simple tax filing.
State e-filing costs extra, and TurboTax has tiered pricing depending on a taxpayer’s needs. For example, the Premier edition, meant for taxpayers with investment and rental income, costs $105 in February 2024, while the Basic edition, which does not give tips on deductions or check for potential audit triggers, costs just $40.
