We've all been there: staring at tax forms, feeling a growing sense of dread, and wondering if we're missing out on crucial deductions or credits. The world of taxes can be daunting, but thankfully, tools like TurboTax Online exist to simplify the process. However, one of the most common questions that comes to mind is, How much does TurboTax Online actually cost? This comprehensive guide will break down the various TurboTax Online editions, their features, and their associated costs for the 2024 tax year (filed in 2025). By the end, you'll have a clear understanding of which option might be best for your financial situation and how to navigate the pricing.
Understanding TurboTax Online Pricing: A Step-by-Step Guide
TurboTax offers a range of online products designed to cater to different tax complexities. The key is to choose the edition that aligns with your specific income sources, deductions, and credits.
Step 1: Identify Your Tax Complexity - Are You a Simple Filer or Something More?
Before we dive into the specific prices, let's start with you. Take a moment to consider your tax situation. Are you:
Just a W-2 employee with no dependents or other income?
A homeowner with mortgage interest and property taxes?
An investor with stocks, bonds, or cryptocurrency?
A freelancer, gig worker, or small business owner with self-employment income?
Someone with rental property income?
Your answer to these questions will significantly influence which TurboTax edition you'll need and, consequently, how much you'll pay.
Step 2: Explore the TurboTax Online Editions and Their Core Offerings
TurboTax primarily offers three main online editions for self-preparers, plus "Live" options that include expert assistance. Here's a breakdown of each for the 2024 tax year (filed in 2025):
Sub-heading 2.1: TurboTax Free Edition (Federal & State: $0)
Who it's for: This edition is designed for simple tax returns only. This typically means taxpayers who:
Claim the standard deduction.
Have W-2 income.
Have limited interest and dividend income (Form 1099-INT/1099-DIV for earnings under $1,500).
Claim the Earned Income Tax Credit (EITC).
Claim the Child Tax Credit.
Claim student loan interest deductions.
Key Features:
100% free federal and state filing for those who qualify.
Step-by-step guidance for basic tax situations.
Automatic import of W-2 information from participating employers.
Maximum refund guarantee.
Audit guidance (though full representation costs extra).
Important Note: Approximately 37% of filers may qualify for the TurboTax Free Edition. If your tax situation becomes even slightly more complex, you'll need to upgrade.
Sub-heading 2.2: TurboTax Deluxe Online (Federal: ~$79, State: ~$64 additional)
Who it's for: This is the most popular choice for homeowners and those with common deductions. It's ideal if you:
Itemize deductions (e.g., mortgage interest, property taxes, charitable contributions).
Have significant medical or educational expenses.
Had unemployment income.
Contributed to a Health Savings Account (HSA).
Have childcare expenses.
Key Features (in addition to Free Edition features):
Maximizes over 350 deductions and credits. This is where the value truly kicks in for many taxpayers.
Guidance for homeowners to ensure you claim all eligible deductions.
Personalized guidance from AI-powered Intuit Assist.
Pricing: Expect to pay around $79 for federal filing, with an additional $64 for each state return you need to file. Prices can fluctuate, especially closer to the tax deadline, so filing earlier can sometimes save you money.
Sub-heading 2.3: TurboTax Premium Online (Federal: ~$139, State: ~$64 additional)
Who it's for: This edition is designed for investors, rental property owners, and self-employed individuals with more complex income and deductions. It's suitable if you have:
Investment income (stocks, bonds, mutual funds, cryptocurrency).
Rental property income (Schedule E).
Sold employee stock.
Complex IRA transactions.
Freelance, gig worker, or self-employment income (1099-NEC or 1099-K income) but without significant business expenses to deduct (for that, see Home & Business/Self-Employed).
Key Features (in addition to Deluxe features):
Seamlessly reports income from investments and rental property.
Finds industry-specific deductions for self-employed individuals.
Helps with mileage and vehicle deductions.
Guidance on home office expenses.
Ability to snap and auto-fill 1099-NEC or 1099-K forms.
Pricing: The federal filing for TurboTax Premium typically costs around $139, plus $64 for each state return.
Sub-heading 2.4: TurboTax Self-Employed Online (Federal: ~$119-$149, State: ~$64 additional)
Who it's for: This is specifically tailored for self-employed individuals, independent contractors, and small business owners who need to report business income and expenses. If you:
Are a freelancer, independent contractor, or gig worker with substantial business expenses.
Receive 1099-NEC income and need to deduct business costs.
Own a small business (sole proprietorship) and file Schedule C.
Key Features (in addition to Premium features, with a stronger focus on business):
Optimized for Schedule C filers.
Helps find every possible business deduction.
Guidance on new business startup costs.
Seamlessly handles self-employment taxes.
Pricing: Pricing for TurboTax Self-Employed Online can range from $119 to $149 for federal filing, plus the standard $64 for each state return. This higher tier reflects the specialized guidance and forms required for business income and expenses.
Step 3: Consider "Live" Options for Expert Assistance
Beyond the "Do It Yourself" (DIY) online editions, TurboTax also offers "Live" versions that include varying levels of expert help:
TurboTax Live Assisted: This option allows you to prepare your taxes yourself, but with the ability to get unlimited, on-demand help from a tax expert as you go. An expert will also review your return before you file to ensure accuracy. The cost for Live Assisted will be higher than the DIY versions (e.g., TurboTax Live Assisted Basic might be around $79 federal, Live Assisted Deluxe around $129 federal, Live Assisted Premium around $209 federal). State filing is also an additional cost.
TurboTax Live Full Service: With this premium option, a dedicated tax expert does your taxes for you from start to finish. You upload your documents, and they handle everything. This is the most expensive option, with prices starting from around $129 for basic returns and going up significantly (e.g., $269 for Premier, $349 for Self-Employed) depending on your tax complexity.
Step 4: Factor in State Filing Fees
Almost universally, state filing is an additional cost with TurboTax Online editions, unless you qualify for the Free Edition (where both federal and state are free for simple returns). For the Deluxe, Premium, and Self-Employed editions, expect to pay around $64 per state return. This can add a significant amount to your total cost if you need to file in multiple states.
Step 5: Watch Out for Add-ons and Discounts
Audit Defense: TurboTax offers an optional "Audit Defense" service for an additional fee. This provides full representation from a tax professional if your return is audited. While TurboTax generally offers free audit guidance, full representation is a separate paid service.
Refund Processing Service: If you want your TurboTax fees deducted from your federal tax refund instead of paying upfront, there's usually a processing fee (around $40).
Promotional Pricing: TurboTax often offers early-bird discounts at the beginning of the tax season. The prices mentioned above are generally the regular listed prices, but you might find lower promotional rates if you file earlier in the season. Keep an eye out for these deals!
Switching Editions: TurboTax generally allows you to downgrade to a lower-cost edition if you realize your tax situation isn't as complex as you initially thought. However, downgrading from Premium to Deluxe might require you to first downgrade to the Free Edition and then upgrade to Deluxe.
Step 6: Finalizing Your Purchase and Filing
Once you've entered all your information, chosen your edition, and reviewed everything, TurboTax will clearly display your total cost before you finalize payment and file your return. You typically don't pay until you're ready to file.
Remember: TurboTax guarantees 100% accurate calculations and your maximum refund. This can offer peace of mind, knowing that the software is designed to help you get all the deductions and credits you qualify for.
10 Related FAQ Questions about TurboTax Online Pricing
Here are 10 frequently asked questions about TurboTax online pricing, with quick answers to help you navigate your tax filing decisions:
How to determine if I qualify for TurboTax Free Edition? You generally qualify if you have a simple tax return, which includes W-2 income, claim the standard deduction, and have limited interest/dividend income (under $1,500), along with certain credits like the EITC or Child Tax Credit.
How to avoid paying for TurboTax if my return is simple? Ensure your tax situation strictly adheres to the criteria for the TurboTax Free Edition. Any additional forms or complexities will automatically move you to a paid version. You can also explore IRS Free File if your AGI is below $84,000, which offers free filing through various partners.
How to find the cheapest time to buy TurboTax Online? The cheapest time is usually at the beginning of the tax season (often in December or January) when promotional pricing is offered. Prices tend to increase as the tax deadline approaches.
How to know if I need TurboTax Deluxe versus Free Edition? If you own a home and want to itemize deductions (mortgage interest, property taxes), have significant medical expenses, or have childcare expenses, you'll likely need TurboTax Deluxe.
How to choose between TurboTax Premier and Self-Employed? Choose TurboTax Premier if your primary complexity comes from investments (stocks, crypto) or rental property. Opt for TurboTax Self-Employed if you have significant freelance, gig, or small business income and a need to deduct associated business expenses.
How to reduce the cost of state filing with TurboTax? For online editions, state filing is generally a fixed additional cost ($64 per state). You might consider printing and mailing your state return if using a desktop version of TurboTax (which often has a separate, lower e-file fee or allows free printing).
How to get expert help without paying for TurboTax Live Full Service? Consider TurboTax Live Assisted, which provides on-demand access to tax experts and a final review, at a lower cost than Full Service where an expert does everything for you.
How to avoid add-on fees like Audit Defense? Simply decline the offer for optional add-on services like Audit Defense during the filing process if you don't wish to purchase them. TurboTax's core guarantee includes basic audit guidance.
How to switch between TurboTax Online editions if I start with the wrong one? You can usually downgrade to a simpler edition if your tax situation allows. For instance, you might be able to downgrade from Premium to Free Edition and then upgrade to Deluxe if you initially chose too high a tier. Look for a "switch products" option within the software.
How to pay for TurboTax Online? You typically pay for TurboTax Online using a credit card. Alternatively, for a fee, you can opt to have the filing fees deducted from your federal tax refund.
