Figuring out how much TurboTax Federal and State will cost you can feel like navigating a maze. Prices fluctuate, your tax situation is unique, and different versions cater to different needs. But don't worry! This comprehensive guide will break down TurboTax pricing for the 2024 tax year (filed in 2025), helping you understand the factors that influence the cost and choose the right option for your specific situation.
Step 1: Let's start by figuring out your basic tax situation!
Are you someone with a simple W-2 income and maybe the standard deduction? Or do you have investments, a rental property, or a small business? Your answer to this initial question is the most crucial determinant of what you'll pay for TurboTax.
Think of it like this: if you're just heating up a frozen pizza, you don't need a gourmet kitchen with all the bells and whistles. Similarly, if your taxes are straightforward, you likely won't need the most expensive TurboTax package.
Step 2: Understanding the Core TurboTax Offerings
TurboTax generally offers several tiers of their software, both online and desktop versions, designed to accommodate varying tax complexities. Prices can also vary depending on whether you choose to "Do it myself," "Help me do it" (Live Assisted), or "Do it for me" (Live Full Service).
Sub-heading: Online Editions - Do It Yourself (DIY)
These are the most common options for self-filers. The prices listed below are approximate and can change, especially as the tax deadline approaches. State filing is always an additional cost with paid online editions.
TurboTax Free Edition:
Federal: Free
State: Free (for simple returns)
Who it's for: This is designed for individuals with very simple tax situations, typically those with W-2 income who take the standard deduction. It may also cover basic credits like the Child Tax Credit or Earned Income Tax Credit, and student loan interest. Approximately 37% of taxpayers qualify for the Free Edition. If you have anything beyond a simple Form 1040, you'll likely need to upgrade.
TurboTax Deluxe:
Federal: Starting around $89
State: Around $64 per state
Who it's for: This is the most popular option for many taxpayers. It's ideal if you own a home, make charitable donations, or have significant medical or educational expenses that allow you to itemize deductions. It helps you find over 350 deductions and credits.
TurboTax Premium (formerly Premier):
Federal: Starting around $129 - $149
State: Around $64 per state
Who it's for: This version is for those with investments (stocks, bonds, cryptocurrency), rental property income, or other more complex income streams. It provides specialized guidance and forms for these situations.
TurboTax Self-Employed:
Federal: Starting around $219
State: Around $69 per state
Who it's for: As the name suggests, this is for freelancers, independent contractors, small business owners, and anyone with self-employment income (e.g., 1099-NEC). It includes guidance for business expenses and helps you maximize business deductions.
Sub-heading: Live Assisted & Full Service Options
If you want expert help, TurboTax offers more hands-on options.
TurboTax Live Assisted:
Federal: Higher than DIY versions (e.g., Deluxe Live Assisted can be $149-$179)
State: Higher than DIY versions (e.g., $69 per state)
What it offers: You do your taxes yourself, but you have access to a tax expert for unlimited advice and a final review before you file. This is great for those who want confidence their return is accurate without handing everything over.
TurboTax Live Full Service:
Federal: Starts around $129, but can significantly increase based on complexity (potentially over $2,000 for very complex returns)
State: Around $69 per state
What it offers: An expert does your taxes from start to finish. You simply provide your documents, and they handle the rest. This is the most expensive option but offers the most convenience and peace of mind.
Sub-heading: Desktop Software (CD/Download)
TurboTax also offers desktop versions that you purchase and install on your computer. These often come with a federal e-file included, and sometimes one state download, but there's typically a separate fee to e-file your state return.
TurboTax Basic: (Often free with certain offers) Simple federal returns.
TurboTax Deluxe Desktop: Around $80. Includes one state download, but state e-file is an additional $25. Good for maximizing deductions.
TurboTax Premier Desktop: Around $115. Includes one state download, state e-file is an additional $25. For investors and rental property owners.
TurboTax Home & Business Desktop: Around $130. Includes one state download, state e-file is an additional $25. For self-employed individuals and small business owners.
Step 3: Factors that Influence the Final Price
You might start with one price, but here's why it can change:
Sub-heading: Tax Complexity
More forms, more cost: The more complex your tax situation (e.g., owning a business, investments, multiple states, foreign income), the more likely you are to need a higher-tier TurboTax product, which comes with a higher price tag.
Upgrading mid-process: TurboTax is designed to automatically suggest an upgrade if your tax situation requires forms or features not available in your current version. This is why it's crucial to understand your needs upfront.
Sub-heading: Time of Filing
Early bird gets the worm (and the discount!): TurboTax often offers early-season discounts. As the April 15th deadline approaches, prices tend to increase. Filing earlier can save you money.
Sub-heading: State Filing Fees
The "Additional" Cost: For most paid TurboTax versions (both online and desktop), filing your state tax return incurs an additional fee per state. This can range from $25 (for e-filing desktop versions) to around $64-$69 for online versions.
Multiple States: If you lived or worked in multiple states during the tax year, you'll pay a state filing fee for each state.
Sub-heading: Add-on Services
Audit Defense: TurboTax offers additional services like Audit Defense for an extra fee (e.g., around $45). This provides full audit representation if you are audited by the IRS.
Refund Processing Fees: If you opt to have your TurboTax fees deducted from your tax refund, there may be an additional "refund processing fee" charged by a third-party bank. It's often cheaper to pay upfront with a credit card.
Live Expert Help: As mentioned, choosing "Live Assisted" or "Live Full Service" will significantly increase your cost, as you're paying for professional tax advice and/or preparation.
Step 4: Step-by-Step Guide to Estimating Your TurboTax Cost
Ready to get a clearer picture of your potential TurboTax bill? Follow these steps:
Sub-heading: Step 4.1: Gather Your Tax Documents
Before you even open TurboTax, have a good idea of what income and deduction forms you'll be dealing with. This includes:
W-2s: For employment income.
1099s (various types): For freelance income (1099-NEC), investment income (1099-B, 1099-DIV, 1099-INT), retirement income (1099-R), etc.
1098s: For mortgage interest (1098), student loan interest (1098-E), tuition (1098-T).
Health Insurance forms: 1095-A, B, or C.
Receipts for itemized deductions: Medical expenses, charitable contributions, state and local taxes, etc.
Sub-heading: Step 4.2: Determine Your Federal Filing Needs
Based on your documents, identify which of the main TurboTax tiers (Free, Deluxe, Premier, Self-Employed) best fits your federal return.
Simple W-2, standard deduction? Start with Free Edition.
Homeowner, itemized deductions, charitable contributions? Deluxe is likely your starting point.
Stocks, crypto, rental property? Premier is probably what you need.
Freelancer, small business owner? Self-Employed is your go-to.
Sub-heading: Step 4.3: Account for State Filings
Do you live in a state with income tax? Most states require a state tax return if you live or work there.
Did you move states or work in another state? You might need to file in multiple states, incurring additional state filing fees for each. Some states have no income tax, so you wouldn't need to file a state return.
Sub-heading: Step 4.4: Consider Live Help or Full Service
Do you want a tax expert to review your return or do it for you? Factor in the significantly higher cost for Live Assisted or Live Full Service if you prefer professional guidance or full outsourcing.
Sub-heading: Step 4.5: Check for Discounts and Promotions
Keep an eye out! TurboTax, especially early in the tax season, may offer discounts directly on their website or through partnerships. Military members or those with certain financial products might also qualify for special pricing.
Check for the "Start for Free" option: You can usually start your return for free with any online TurboTax product. You only pay when you're ready to file. This allows you to explore the interface and see if an upgrade is necessary before committing.
Sub-heading: Step 4.6: Review the "My Fees" Section
Once you start inputting information into TurboTax online, there's usually a "My Fees" or "Pricing" section. This is your best resource for a real-time estimate of your current cost based on the forms you've generated so far. Always check this before you hit "File."
Step 5: A Quick Word on "Free"
It's important to differentiate between TurboTax's Free Edition and the IRS Free File program.
TurboTax Free Edition: As discussed, this is for very simple returns. If your tax situation becomes even slightly more complex, TurboTax will prompt you to upgrade to a paid version.
IRS Free File Program: This is a partnership between the IRS and various tax software companies (including some TurboTax products). If your Adjusted Gross Income (AGI) is below a certain threshold (often around $84,000 for tax year 2024), you may qualify to file both federal and state taxes for free through one of these partnered programs. The catch is that you usually must access these programs through the IRS Free File website, not directly from the software provider's main site, to ensure it's truly free.
Step 6: Making Your Final Decision
Compare Features to Cost: Don't just pick the cheapest option. Ensure the TurboTax version you select covers all the forms and guidance you need for your specific tax situation. An incorrect filing could cost you more in penalties or missed deductions than the software itself.
Read the Fine Print: Prices can change, and special offers often have expiry dates. Always confirm the final price before paying.
Consider Alternatives: While TurboTax is popular, other reputable tax software options like H&R Block, TaxAct, and FreeTaxUSA exist, often with different pricing structures. FreeTaxUSA, for example, often offers free federal filing with a low state filing fee.
10 Related FAQ Questions
How to calculate my exact TurboTax Federal and State cost?
The most accurate way is to start your return with TurboTax. As you input your information, the "My Fees" section (usually accessible via "Tax Tools" or "Tools" in the online version) will update to show your real-time cost based on the forms and services you've used.
How to avoid paying for TurboTax state filing?
If your income situation qualifies, you might be able to file both federal and state for free through the IRS Free File program by accessing a participating software provider (which may include a TurboTax Free File product) directly through the IRS Free File website. Otherwise, with paid TurboTax versions, state filing almost always incurs a fee. For desktop versions, you can avoid the e-file fee by printing and mailing your state return, but the software still charges for the state return preparation.
How to know if my tax situation is "simple" enough for TurboTax Free Edition?
Generally, a simple tax situation means W-2 income only, taking the standard deduction, and potentially claiming the Earned Income Tax Credit, Child Tax Credit, or student loan interest deduction. If you have itemized deductions, investments, self-employment income, or rental properties, you will likely need a paid version.
How to upgrade my TurboTax product if my tax situation changes?
TurboTax will typically prompt you to upgrade automatically if you enter information that requires a higher-tier product. You can also manually upgrade within the software or online account at any time before filing.
How to get a discount on TurboTax?
Look for early-season discounts on the TurboTax website, check for promotions through your bank or financial institutions, or see if you qualify for a free version through the IRS Free File program. Sometimes, military personnel also receive discounts.
How to pay for TurboTax without a credit card?
You can often pay for TurboTax by having the fees deducted from your federal tax refund. However, be aware that this usually incurs an additional "refund processing fee" from a third-party bank.
How to find out the current TurboTax pricing for my specific state?
While TurboTax advertises general state fees, the exact cost for your state will be displayed as you progress through your state return within the software, or you can find specific state fee information on the TurboTax website's pricing page.
How to decide between TurboTax online and desktop versions?
Online versions offer accessibility from any device and automatic updates. Desktop versions give you more control over your tax data on your own computer and often allow filing for multiple federal returns (e.g., up to 5) if you have family members whose returns you prepare. Desktop versions also typically charge a separate e-file fee for state returns, while online versions include the e-file fee within the state preparation fee.
How to get help if I have questions while using TurboTax?
TurboTax offers various help options depending on your chosen product. This can include a searchable knowledge base, community forums, and, with Live Assisted or Full Service products, direct access to tax experts for questions or full preparation.
How to track my refund after filing with TurboTax?
After filing, you can track your federal refund using the IRS "Where's My Refund?" tool on their website. For state refunds, you'll typically use your individual state's revenue department or tax agency website.
