How Much Does TurboTax Charge to Do Taxes? A Comprehensive Guide
Are you staring down tax season, feeling a familiar mix of dread and confusion? You're not alone! Many people turn to tax software like TurboTax for its user-friendly interface and promise of a simplified filing process. But a common question that quickly arises is: how much is this convenience going to cost me?
The answer, as with many things tax-related, is that it depends. TurboTax offers a range of products and services, from free options for simple returns to premium packages with expert assistance, and the price varies significantly based on your individual tax situation and the level of support you need.
This lengthy guide will walk you through the various TurboTax offerings, their typical costs, and help you determine which option is the best fit for your wallet and your peace of mind.
Step 1: Assess Your Tax Situation – Do You Qualify for Free Filing?
Before you even think about pricing tiers, let's explore if you can file for free! TurboTax does offer a Free Edition, but it's crucial to understand its limitations.
Understanding the TurboTax Free Edition
The TurboTax Free Edition is designed for individuals with simple tax returns. What exactly does "simple" mean to TurboTax?
W-2 Income Only: This is typically the bread and butter of the Free Edition. If your income comes solely from an employer who provides a W-2, you're off to a good start.
Standard Deduction: If you plan to take the standard deduction (meaning you're not itemizing deductions like mortgage interest or charitable contributions), the Free Edition might work for you.
Limited Credits/Deductions: It generally covers common credits like the Earned Income Tax Credit (EITC), the Child Tax Credit (CTC), and the student loan interest deduction.
No Complex Forms/Schedules: If your tax situation requires additional schedules beyond the basic Form 1040 (like Schedule A for itemized deductions, Schedule C for self-employment, or Schedule D for investments), the Free Edition likely won't cut it.
Important Note: While federal filing might be free, state filing can sometimes incur a separate fee, even with the Free Edition. Always double-check this as you proceed.
Engaging Tip: Take a moment right now to gather your W-2s, 1099s, and any other income statements. Do you foresee needing to itemize? Are you self-employed? The answers to these questions will be your first clue in navigating TurboTax's pricing.
Step 2: Explore the Main TurboTax Online Editions and Their Costs
If your tax situation isn't "simple" enough for the Free Edition, you'll need to move up to one of TurboTax's paid online editions. These are typically priced for federal filing, with an additional fee for state filing. Prices can also fluctuate throughout the tax season, with early filers sometimes getting better deals.
Sub-heading: TurboTax Deluxe
Who it's for: This is TurboTax's most popular paid option and is generally recommended for homeowners, those with significant deductions, or individuals with certain types of investment income (though not complex investments).
Key Features:
Maximizes deductions and credits: It helps you find over 350 deductions and credits you might qualify for, including mortgage interest, property taxes, and charitable donations.
Itemized deductions: If you're itemizing on Schedule A, Deluxe is usually your entry point.
Guidance for life changes: It offers guidance for common life events like marriage, divorce, or having a child.
Typical Cost (Federal): Expect to pay around $89-$100 for the federal return.
Typical Cost (State): State returns are usually an additional $50-$60 per state.
Sub-heading: TurboTax Premier
Who it's for: Premier is geared towards investors and rental property owners.
Key Features:
Investment income handling: Seamlessly reports income from stocks, bonds, mutual funds (Schedule D), and cryptocurrency.
Rental property income: Guides you through reporting rental income and related expenses (Schedule E).
Guidance for employee stock plans: Helps with reporting income from employee stock options.
Typical Cost (Federal): The federal filing for Premier generally costs around $120-$150.
Typical Cost (State): State returns are typically an additional $50-$60 per state.
Sub-heading: TurboTax Self-Employed (or Home & Business for Desktop)
Who it's for: This edition is essential for freelancers, independent contractors, small business owners, and gig workers who receive 1099-NEC or 1099-MISC forms.
Key Features:
Industry-specific deductions: Helps you uncover deductions relevant to your self-employment, such as home office expenses, vehicle deductions, and business expenses.
Simplified expense tracking: Tools to categorize and track business expenses.
Estimates quarterly taxes: Provides guidance on estimated tax payments throughout the year.
Typical Cost (Federal): The federal return for Self-Employed can range from $150-$200.
Typical Cost (State): State returns are typically an additional $50-$60 per state.
Step 3: Consider TurboTax Live Options for Expert Help
TurboTax also offers "Live" versions of its products, which provide on-demand access to tax experts for guidance and a final review of your return. These come at a significantly higher price point.
Sub-heading: TurboTax Live Assisted
What it is: You prepare your taxes yourself using the software, but you have the option to connect with a tax expert via video or chat to get your questions answered and have them review your return before you file.
Available for: This option is available for Basic, Deluxe, Premier, and Self-Employed tiers.
Typical Cost (Federal):
Live Basic: Around $80-$100 (if you qualify for the basic version).
Live Deluxe: Approximately $130-$150.
Live Premier: Roughly $200-$220.
Live Self-Employed: Can be around $220-$250.
Typical Cost (State): State returns are usually an additional $60-$70 per state for Live Assisted options.
Sub-heading: TurboTax Live Full Service
What it is: This is the most hands-off option. You hand over all your tax documents to a dedicated tax expert, and they prepare and file your taxes for you. You simply review and approve.
Who it's for: Ideal for those who want minimal involvement in the tax preparation process or have very complex tax situations and prefer a professional to handle everything.
Typical Cost (Federal): This is the most expensive option. Prices vary widely based on complexity but can start from $170 and go up to $400+ for self-employed or business returns.
Typical Cost (State): State filing is also an additional fee, often around $70-$80 per state.
Step 4: Factor in Additional Fees and Add-ons
Beyond the core product prices, there are a few other charges you might encounter.
Sub-heading: State Filing Fees
As mentioned, state filing is almost always an additional charge with TurboTax, even if your federal return is free or you've paid for a federal product. The cost typically ranges from $50 to $70 per state.
Sub-heading: Refund Processing Service Fee
If you choose to have your TurboTax fees deducted from your tax refund, there's usually a "Refund Processing Service" fee, which is an additional charge (often around $40). This allows you to pay for the software without upfront out-of-pocket costs, but you pay a premium for that convenience.
Sub-heading: Audit Defense
TurboTax offers an optional "Audit Defense" service, powered by TaxAudit. This service provides assistance and representation if your return is audited by the IRS or state taxing authorities. While you get basic audit guidance for free with any TurboTax product, full representation comes at an extra cost. The cost for Audit Defense is typically around $40-$50.
Sub-heading: TurboTax Desktop Software vs. Online
While the online versions are subscription-based for a single tax year, TurboTax also sells desktop software (CD/Download). These typically offer 5 federal e-files and 1 state download, with additional state e-files costing extra. The upfront cost for the desktop software can sometimes be slightly lower than the online equivalent if you buy it on sale, but consider the state e-file limitations.
Step 5: Look for Discounts and Special Offers
TurboTax often runs promotions, especially early in the tax season. Keep an eye out for:
Early-bird discounts: Filing early can sometimes save you a significant amount.
Promotional codes: Check reputable coupon sites or TurboTax's own website for current deals.
Student or military discounts: TurboTax may offer special pricing for students or active-duty military personnel.
Bank or financial institution partnerships: Sometimes your bank or credit union might have a partnership with TurboTax that offers discounted rates.
Putting It All Together: A Quick Cost Snapshot (Approximate, for Tax Year 2024, filed in 2025)
Simple Federal & State (W-2, Standard Deduction): Free (Federal) + ~$50-$60 (State) = $50-$60
Deluxe Federal & State (Homeowner, Itemizing): ~$89-$100 (Federal) + ~$50-$60 (State) = $139-$160
Premier Federal & State (Investments/Rental Property): ~$120-$150 (Federal) + ~$50-$60 (State) = $170-$210
Self-Employed Federal & State (Freelancer, 1099 Income): ~$150-$200 (Federal) + ~$50-$60 (State) = $200-$260
Live Assisted (e.g., Deluxe Live): ~$130-$150 (Federal) + ~$60-$70 (State) = $190-$220
Live Full Service (e.g., Self-Employed Full Service): ~$400+ (Federal) + ~$70-$80 (State) = $470-$500+
Remember, these are estimates and prices can change! Always check the official TurboTax website for the most up-to-date pricing for the current tax season.
Final Thoughts on TurboTax Pricing
While TurboTax can seem expensive, especially for more complex situations or with Live assistance, many users find the ease of use, guided questions, and the "maximum refund guarantee" to be worth the cost. For those with straightforward tax situations, the Free Edition remains a viable and genuinely free option for federal filing. The key is to accurately assess your tax needs before committing to a specific product. Don't pay for features you don't need, but also don't hesitate to invest in the right version if it means accurately filing your taxes and potentially maximizing your refund.
10 Related FAQ Questions
How to determine which TurboTax product I need?
To determine the right TurboTax product, assess your income sources (W-2, 1099s, investments, rental income), if you plan to itemize deductions, and whether you require expert assistance. TurboTax's website has a "Compare Products" tool that can guide you based on your answers to a few questions.
How to get TurboTax for free?
You can get TurboTax for free if you have a simple Form 1040 return, meaning primarily W-2 income and taking the standard deduction, without complex schedules. Active-duty military personnel may also qualify for free filing across various editions.
How to avoid state filing fees with TurboTax?
State filing fees are almost always separate. Some states may not have an e-filing fee through TurboTax, or you might find a promotion that bundles federal and state. Otherwise, you may need to pay the separate state filing fee or choose a different tax software that offers free state filing (e.g., FreeTaxUSA charges a smaller fee for state).
How to know if my tax situation is "simple" for the Free Edition?
A "simple" tax situation for TurboTax Free Edition typically involves only W-2 income, taking the standard deduction, and claiming common credits like the Earned Income Tax Credit or Child Tax Credit. If you have freelance income, investments, rental property, or itemized deductions, it's likely not simple enough.
How to get a discount on TurboTax?
Look for early-bird discounts at the start of tax season, especially if you file in January or February. Check TurboTax's website directly for promotions, or look for coupon codes from reputable financial websites. Some banks or credit unions may also offer discounts to their members.
How to pay for TurboTax if I don't want to use my refund?
You can pay for TurboTax directly with a credit card or debit card at the time of filing. This avoids the additional "Refund Processing Service" fee that applies if you choose to have your fees deducted from your refund.
How to get audit support with TurboTax?
All TurboTax products include free one-on-one audit guidance. If you want full audit representation (meaning TaxAudit will communicate with the IRS on your behalf), you'll need to purchase the separate "Audit Defense" add-on.
How to upgrade my TurboTax product if my situation changes?
As you enter information into TurboTax, if your tax situation becomes more complex than the edition you initially selected, TurboTax will prompt you to upgrade to the appropriate product (e.g., from Deluxe to Premier or Self-Employed). Your work will be saved, and you'll just pay the difference.
How to file multiple state returns with TurboTax?
If you need to file in multiple states, TurboTax will charge a separate state filing fee for each state you file in, regardless of the federal product you use. The process within the software is generally straightforward, allowing you to prepare each state return after completing your federal return.
How to contact TurboTax customer support for pricing questions?
You can typically find pricing information directly on the TurboTax website's "Compare Products" or "Pricing" pages. For specific questions or to inquire about your particular situation, you can access their customer support via phone, chat, or their online community forum, especially during peak tax season.
