As the tax deadline creeps closer, picking the right tax software becomes crucial for a smooth filing experience. Among the contenders we examined, TurboTax stands out, mainly due to its user-friendly platform and a tax-prep journey that flows like a breeze for most users.
While not perfect in every arena, TurboTax shines with its solid customer support and streamlined online process, making it a solid contender for many filers.
TurboTax at a Glance
- DIY Pricing
Federal: $0 up to $89
State: Free or $64 per state - Free Version Available?
Yes, but with some limitations. - Key Selling Points
– Multiple expert help options during filing
– Comprehensive educational tools
– Straightforward uploading of tax documents
Who Should Consider TurboTax?
TurboTax might be your go-to if you:
- Are juggling a complicated return and desire detailed professional guidance.
- Prefer a tax pro to electronically file on your behalf.
- Run a small business.
- Deal with cryptocurrency investments.
Who Might Want to Look Elsewhere?
TurboTax may not be your favorite if you:
- Crave face-to-face interaction with a tax preparer.
- Are hunting for the absolute cheapest tax filing alternative.
Breaking Down the Cost of TurboTax
TurboTax’s pricing spectrum varies with the complexity of services offered and tends to spike as the April 15 deadline looms. Additional fees apply for enhanced support.
The entry-level self-service package ranges from complimentary up to $89 for federal filing. Stepping up, the Live Assisted plan ($89 to $219) brings unlimited expert help and an ultimate professional review, though you’ll connect with a group of specialists rather than a single point-person. For those seeking a hands-off approach, the Live Full Service option begins at $129 but can skyrocket beyond $2,000 for highly intricate returns involving multiple tax forms. This premium tier pairs you with a dedicated pro who manages filing and reviews everything on your behalf.
Desktop software options are also available, priced from $50 to $130, which suit those comfortable without expert advice.
TurboTax’s Tax Filing Suites
TurboTax offers three main avenues online: Do It Yourself, Live Assisted, and Live Full Service.
- Do It Yourself: The free DIY tier applies to about 37% of taxpayers — mainly those submitting Form 1040 with few credits and deductions. Otherwise, the DIY plan can cost up to $89. State filings are either free or $64 per state, depending on your profile.
- Live Assisted: Spanning $89 to $219, this tier suits folks wanting expert guidance and year-round help, including audit support and final expert review. State filing fees range from $59 to $69 per state.
- Live Full Service: Commanding the highest price tag starting at $129 (and climbing steeply for complex returns), this premium service assigns a dedicated expert for personal consultations by phone or video. The pro not only handles filing but reviews everything with you. Expect $69 per state for state filing.
Additional Fact: According to TurboTax, roughly 37% of filers qualify for free federal filing if they meet eligibility criteria, highlighting the service’s accessibility for simple returns.
Desktop Software Tiers Explained
| Basic | $50 | Five federal e-files, stepwise guidance, educational tax law updates | $45 to download, plus $25 e-file fee (print free) |
| Deluxe | $80 | Five federal e-files, deduction maximization tools, one state download included | $25 e-file fee |
| Premier | $115 | Ideal for investment and rental property owners; five federal e-files, one state download | $25 e-file fee |
| Home & Business | $130 | Designed for self-employed; covers rental income, investments, retirement tax guidance; five federal e-files, one state download | $25 e-file fee |
Note: Pricing for tax software is fluid and tends to surge as tax day nears. Checking TurboTax’s official page for updates is wise.
Is TurboTax Right for You?
For many, TurboTax simplifies the often-daunting tax filing ordeal. Its jargon-light interface translates intricate tax talk into digestible steps—even the free tier offers this clarity. That said, if you fall outside free-filing eligibility, be prepared for a pricier experience compared to some rivals.
If you treasure in-person support, visiting a local tax preparer’s office might be the ticket. Conversely, self-confident DIYers with solid tax know-how might find TaxSlayer a better match.
About TurboTax’s Parent Company
Owned by Intuit, TurboTax benefits from a massive infrastructure: over 18,000 employees worldwide and a customer base exceeding 100 million. The program dates back to 1984, joining Intuit in 1993. The tax pros TurboTax connects you with undergo mandatory training, and you can review their credentials when matched.
Filing Made Simple
Whether navigating online or opting for downloadable software, TurboTax leads users through a clear-cut questionnaire tailored to personal tax circumstances. Based on these inputs, the software auto-fills necessary tax forms, ready for electronic submission or printing, depending on your preference.