Preparing your tax return with TurboTax is a lot like sitting down with a tax preparer. The software walks you through the tax preparation and filing process with a series of interview-style questions.
As part of my review process, I went through the process of preparing three sample returns. Here’s how long it took me to get from start to filing for each one:
- Single taxpayer, no dependents, W-2 income and the student loan interest deduction: 13 minutes
- Married couple filing jointly, one dependent, two W-2s, Child Tax Credit and child and dependent care credit: 20 minutes
- Single taxpayer, no dependents, self-employment income, federal and state estimated tax payments: 30 minutes
During the process, a banner at the top of the screen keeps a running tally of your estimated federal and state refund or amount due.
Embedded links on each screen offer tips, explain different income, deductions, and tax credits.
If you get stuck along the way, you have the option of paying an additional fee and upgrading to TurboTax Live to get on-demand help from a TurboTax expert or CPA. When you choose this option, the tax pro will do a final review of your return before you file.
You can also pay an additional fee to move to Full Service and have your tax return prepared for you. Before filing your return, a tax pro will schedule a time to review your return with you.
While the software offers many tips to help do-it-yourselfers, including a bot (known as the TurboTax Digital Assistant), you won’t have access to hands-on customer service unless you’re willing to upgrade to TurboTax Live.
And that’s another aspect of using TurboTax you should be aware of: near-constant urging to upgrade your package. During the 13 minutes I spent preparing a simple return, I encountered no fewer than three offers to upgrade.
Throughout the tax preparation process, you’ll periodically come across screens encouraging you to upgrade from Free* to Deluxe, get help from a TurboTax Live expert, or add TurboTax MAX—an add-on package that includes audit representation, identity theft resources, and priority customer service.
In some cases, these upgrades can be useful. For example, if you could reduce your tax bill by itemizing deductions, upgrading from the Free Edition* to Deluxe might make sense. And if you legitimately want extra help from a tax expert, you may be happy to pay for TurboTax Live. Just make sure you need and want the upgrade before accepting the offer.
Some reasons you may want to upgrade include:
- Your total itemized deductions are greater than the standard deduction available for your filing status
- You have self-employment or rental income, capital gains and losses, or other income, deductions or credits not covered by the Free Edition*
- You don’t feel entirely comfortable preparing your tax return on your own and want help from a TurboTax Live or Full Service tax expert
- You’re worried about an IRS audit or identity theft, and the peace of mind offered by TurboTax MAX is worth the extra fee
