How Much Does It Cost To Do Your Own Taxes On Turbotax

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Are you ready to tackle your taxes head-on this year? Feeling a little overwhelmed by the thought of it? Well, you're not alone! Many people wonder if they can save money by doing their own taxes, and TurboTax often comes up as a popular option. But the big question is, how much does it actually cost to do your own taxes on TurboTax?

The answer, like most things tax-related, isn't a simple, single number. It varies significantly based on your individual tax situation and the level of assistance you need. But don't worry, we're here to break it all down for you.

Let's dive into the details and help you understand the potential costs involved in using TurboTax for your DIY tax filing.

Step 1: Assess Your Tax Complexity - Are You a "Simple" Filer?

Before you even think about TurboTax pricing, the very first thing you need to do is understand your own tax situation. This is the biggest determinant of what you'll pay.

Sub-heading: What qualifies as a "simple" tax return? TurboTax offers a Free Edition for very basic tax situations. If your tax life looks something like this, you might be in luck:
- You only have W-2 income (from a single job or multiple jobs, but no complex income sources).
- You're claiming the standard deduction.
- You only need to claim common credits like the Earned Income Tax Credit (EITC), the Child Tax Credit (CTC), or the student loan interest deduction.
- You don't have income from investments, rental properties, self-employment, or other more complex scenarios.
- You generally file a Form 1040 without any additional schedules (except for those specifically allowed by the Free Edition).
If your tax situation is more involved than this, you'll likely need to upgrade to a paid version.

Step 2: Explore TurboTax Online Editions and Their Costs

TurboTax offers several online editions, each designed for different levels of tax complexity. The prices generally increase as your tax situation becomes more intricate. Keep in mind that prices for the current tax year (which you'll file in 2025) are subject to change and often increase closer to the tax deadline. The prices mentioned below are estimates based on current publicly available information for the 2024 tax year (filed in 2025) and can fluctuate.

Sub-heading: TurboTax Free Edition
- Cost: $0 Federal, $0 State (for qualifying simple returns)
- Who it's for: As mentioned above, this is for individuals with very straightforward tax situations, typically with W-2 income and claiming the standard deduction. Approximately 37% of filers qualify for this.
- Key takeaway: This is truly free if your situation fits the criteria. However, if you add even one form that isn't supported, you'll be prompted to upgrade.
Sub-heading: TurboTax Deluxe
- Cost: Approximately $89 - $139 Federal, plus an additional fee for State (around $64 - $69 per state)
- Who it's for: This is the most popular option for homeowners, those with charitable donations, high medical expenses, or who need to itemize deductions. It helps you maximize over 350 deductions and credits.
- Key features:
  - Maximize tax deductions and credits.
  - Handles mortgage and property tax deductions.
  - Guidance for charitable donations.
  - Personalized guidance from AI-powered Intuit Assist.
Sub-heading: TurboTax Premier
- Cost: Approximately $149 - $219 Federal, plus an additional fee for State (around $64 - $69 per state)
- Who it's for: If you have investments (stocks, bonds, mutual funds, crypto) or rental property income, this is likely the version you'll need.
- Key features:
  - Everything in Deluxe.
  - Guidance for investments (stocks, bonds, crypto).
  - Support for rental property income and related deductions.
  - Helps determine correct cost basis for stock sales.
Sub-heading: TurboTax Self-Employed
- Cost: Approximately $179 - $229 Federal, plus an additional fee for State (around $64 - $69 per state)
- Who it's for: This edition is crucial for freelancers, independent contractors, small business owners, gig workers, and anyone with 1099-NEC or 1099-MISC income.
- Key features:
  - Everything in Premier.
  - Helps you find industry-specific deductions.
  - Guidance for business expenses and self-employment taxes.
  - Simplifies reporting for various income sources.

Step 3: Consider Desktop Software vs. Online Versions

While the online versions are popular for their convenience, TurboTax also offers downloadable desktop software. The pricing model for desktop versions is slightly different.

Sub-heading: TurboTax Desktop Software Costs
- TurboTax Basic Desktop: Around $50 (includes 5 federal e-files, step-by-step guidance). State e-file usually an additional fee (e.g., $25).
- TurboTax Deluxe Desktop: Around $80 (includes 5 federal e-files and one state download, but state e-file is an additional fee, e.g., $25).
- TurboTax Premier Desktop: Around $115 (includes 5 federal e-files and one state download, with an additional fee for state e-file, e.g., $25). Ideal for investments and rental properties.
- TurboTax Home & Business Desktop: Around $130 (includes 5 federal e-files and one state download, with an additional fee for state e-file, e.g., $25). Best for self-employed individuals.
The desktop versions typically offer a flat fee for the software itself, and sometimes include one state download, with subsequent state filings or e-filing incurring additional costs.

Step 4: Factor in Additional Services and Their Costs

Beyond the core product editions, TurboTax offers several add-on services that can impact your final cost. These are optional, but many users find them valuable.

Sub-heading: State Filing Fees
- Cost: Typically $64 - $69 per state for online versions, or around $25 for e-filing with desktop versions (after any included state downloads).
- Importance: Most states require their own separate tax return. Even if your federal return is free, your state return likely won't be with TurboTax.
Sub-heading: TurboTax Live (Expert Assistance)
- Cost: Varies widely based on the edition and level of assistance, but can range from approximately $89 to over $2000.
- What it is: TurboTax Live connects you with a tax expert (CPA or Enrolled Agent) who can answer your questions, provide unlimited advice, and even conduct a final review of your return before you file. There are generally two main tiers:
  - Live Assisted: Provides on-demand access to a tax expert for questions and a final review. Prices start from around $89 (Basic) to $219 (Premier/Self-Employed) for federal, plus state fees.
  - Live Full Service: An expert handles your entire tax return from start to finish. This is the most expensive option, starting at around $129 for simple returns but potentially exceeding $2000 for very complex situations.
Sub-heading: Refund Processing Service (Pay with Your Refund)
- Cost: Approximately $40.
- What it is: This service allows you to deduct TurboTax fees directly from your federal or state tax refund, so you don't have to pay upfront. While convenient, it comes with an additional processing fee.
Sub-heading: Audit Defense (Powered by TaxAudit)
- Cost: Approximately $49.99 for individuals (as of current information).
- What it is: This is an optional add-on that provides full audit representation from a TaxAudit professional in the event you're audited by the IRS or state. While TurboTax offers free audit guidance, this service provides a dedicated expert to handle all communication and representation for you.

Step 5: Look for Discounts and Promotions

TurboTax, like many software providers, often runs promotions, especially early in the tax season.

Sub-heading: Early Bird Specials
- Tip: If you're an early bird and get your taxes done well before the April deadline, you might find lower prices. Prices tend to increase as the deadline approaches.
Sub-heading: Previous Year User Discounts
- Tip: Sometimes, TurboTax offers discounts to returning customers. Keep an eye on your email or within your TurboTax account for such offers.
Sub-heading: Bundles and Promotions
- Tip: Look for bundles that include both federal and state filing, or even add-ons like Audit Defense, at a slightly reduced rate.

Step 6: Final Review and Payment

Sub-heading: The "Pay When You File" Model
- One of the nice things about TurboTax is that you typically don't pay until you're ready to file. This means you can start your return, explore different sections, and see which edition your tax situation requires without any upfront cost. The price will be displayed clearly before you finalize your filing.
Sub-heading: Double-Check Everything
- Before you hit that "file" button, always double-check all your information. TurboTax has built-in checks, but ultimately, the accuracy of your return is your responsibility.
Sub-heading: Understanding Your Refund/Amount Due
- As you progress through your return, TurboTax provides a running tally of your estimated refund or amount due. This helps you understand the financial implications of your entries in real-time.

In Summary: What's the Real Cost?

To recap, the cost of doing your own taxes on TurboTax can range from $0 (if you qualify for the Free Edition) up to several hundred dollars if you have a complex return, multiple states, or opt for premium features like TurboTax Live Full Service and Audit Defense.

Simple W-2 filer, standard deduction: $0 Federal, $0 State (with Free Edition)
Homeowner, itemizing deductions: ~ $89-$139 Federal + ~$64-$69 State
Investor or rental property owner: ~ $149-$219 Federal + ~$64-$69 State
Self-employed individual: ~ $179-$229 Federal + ~$64-$69 State
Any of the above with TurboTax Live Assisted: Add ~$50-$100+ to the above federal prices.
Any of the above with TurboTax Live Full Service: Can range from ~$129 up to $2000+ depending on complexity.
Add Audit Defense: ~$49.99

By carefully evaluating your tax situation and considering the features each TurboTax edition offers, you can choose the right product and avoid any unexpected costs. Happy filing!