Navigating the world of tax filing can feel like deciphering a secret code, and for many, TurboTax is the go-to solution. But one of the most common questions that comes up is: "How much does it actually cost to file taxes with TurboTax?" The answer, as you'll soon discover, isn't a simple flat fee. It varies significantly depending on your individual tax situation, the level of assistance you need, and even when you decide to file.
Are you ready to unravel the mystery of TurboTax pricing and find the option that's right for you? Let's dive in!
Step 1: Understand Your Tax Complexity – Are You a "Simple" Filer or Do You Have More Going On?
Before we even look at TurboTax's specific products and prices, the most crucial first step is to honestly assess your tax situation. This will directly dictate which TurboTax version you need and, consequently, how much you'll pay.
Basic/Simple Filers: Do you only have W-2 income? Are you taking the standard deduction? Do you only need to claim common credits like the Child Tax Credit or Earned Income Tax Credit (EITC)? If so, you might qualify for TurboTax's Free Edition.
Mid-Range Complexity: Do you own a home and want to itemize deductions (mortgage interest, property taxes)? Do you have significant charitable donations? Do you have student loan interest or education credits? These situations typically move you into a paid version like TurboTax Deluxe.
Higher Complexity: Do you have investments (stocks, bonds, mutual funds, cryptocurrency)? Do you own rental properties? Are you self-employed, a freelancer, or an independent contractor with 1099 income and business expenses? These scenarios generally require TurboTax Premier or Self-Employed.
Need Expert Help? Do you want an expert to review your return or even prepare it for you from start to finish? TurboTax offers Live Assisted and Live Full Service options, which come with a higher price tag.
Understanding your tax profile upfront will save you time and potentially money by guiding you to the most appropriate TurboTax product.
Step 2: Explore TurboTax Online Editions and Their Pricing (2025 Tax Year)
TurboTax offers several online editions, each designed for different tax complexities. Keep in mind that prices are subject to change throughout the tax season, with early filers often getting the best rates.
Sub-heading: TurboTax Free Edition
Cost: $0 Federal & $0 State (for eligible users)
Who it's for: This is ideal for taxpayers with simple tax situations. This typically means W-2 income, claiming the standard deduction, and eligibility for basic credits like the Child Tax Credit and Earned Income Tax Credit (EITC). Approximately 37% of taxpayers qualify for the Free Edition.
Key Features:
Filing of Form 1040.
Guidance for student loan interest deductions.
Maximum refund guarantee.
Ability to import W-2 information.
Sub-heading: TurboTax Deluxe
Cost: Around $89 for Federal, plus an additional fee for State filing (typically $64-$69).* (*Prices are subject to change.)
Who it's for: This is TurboTax's most popular option and is suitable for homeowners, those with significant deductions, and individuals with more involved but not overly complex tax situations.
Key Features:
Includes all features of the Free Edition.
Maximizes over 350 tax deductions and credits.
Guidance for homeowners (mortgage interest, property taxes).
Assistance with charitable donations.
Personalized guidance from Intuit Assist (AI-powered).
"CompleteCheck" feature to scan for accuracy.
Sub-heading: TurboTax Premium (or Premier)
Cost: Around $139 for Federal, plus an additional fee for State filing (typically $64-$69).* (*Prices are subject to change.)
Who it's for: This edition is designed for investors and rental property owners.
Key Features:
Includes all features of the Deluxe Edition.
Handles investment income (stocks, bonds, mutual funds, cryptocurrency).
Guidance for rental property income and expenses.
Help with employee stock plans (ESPPs).
Retirement tax help and IRA tools.
Sub-heading: TurboTax Self-Employed (or Home & Business for Desktop)
Cost: Around $149 for Federal, plus an additional fee for State filing (typically $64-$69).* (*Prices are subject to change.)
Who it's for: This is a must-have for freelancers, independent contractors, small business owners, and anyone with self-employment income (1099-NEC, 1099-MISC).
Key Features:
Includes all features of the Premium Edition.
Maximizes business deductions (home office, vehicle expenses, supplies, etc.).
Assistance with tracking business income and expenses.
Integration with QuickBooks Self-Employed (sometimes available as a bundle).
Guidance for new business start-up deductions.
Step 3: Consider TurboTax Live Options for Expert Assistance
If you prefer to have a tax professional assist you, TurboTax Live offers varying levels of support. This comes at a higher cost but provides peace of mind.
Sub-heading: TurboTax Live Assisted
Cost: Starts around $139 for Deluxe, going up to $219+ for Premium/Self-Employed (Federal), plus additional state fees. (*Prices are subject to change and vary by the underlying product chosen.)
Who it's for: For those who want to do their own taxes but want the ability to ask a tax expert questions and have a final review of their return before filing.
Key Features:
All features of the corresponding TurboTax Online product (Deluxe, Premium, Self-Employed).
Unlimited, on-demand advice from a tax expert via phone or video.
A tax expert performs a final review of your return to ensure accuracy and maximize your refund.
Expert Approved Guarantee.
Sub-heading: TurboTax Live Full Service
Cost: Starts around $129 for simple returns, with prices increasing significantly based on complexity (e.g., $219+ for business owners). State filing fees are additional. (*Prices are subject to change and increase with complexity.)
Who it's for: If you prefer to hand off your taxes completely to a tax professional, this is your option.
Key Features:
You upload your documents, and a dedicated tax expert prepares and files your return for you.
They find every deduction and credit you qualify for.
Guaranteed accuracy and maximum refund.
Ability to communicate with your expert throughout the process.
Some options allow you to meet with a local expert in person.
Step 4: Don't Forget State Filing Fees and Other Potential Costs
Beyond the federal filing fee, there are a few other costs to be aware of:
State Filing Fees: For most paid TurboTax online editions, state tax returns are an additional charge, typically ranging from $64 to $69 per state. Some desktop versions might offer a lower e-file fee (e.g., $25), or you can print and mail for free.
Refund Processing Service Fee: If you choose to have your TurboTax fees deducted directly from your federal tax refund, TurboTax usually charges an additional processing fee (around $40). This is a convenience fee for not paying upfront with a credit card.
Audit Defense/Support: While TurboTax offers free basic audit guidance, they often offer an optional Audit Defense product for an additional fee. This provides full representation from a tax professional if you're audited.
Desktop Software vs. Online: TurboTax also offers downloadable desktop software. While the initial purchase price might seem higher, the desktop versions often include federal e-filing for up to 5 returns and preparation for one state (state e-file is usually extra). The pricing structure can differ, so compare carefully if you prefer desktop software.
TurboTax Desktop Deluxe: Around $80 (includes 5 federal e-files, 1 state download; state e-file additional).
TurboTax Desktop Premier: Around $115 (includes 5 federal e-files, 1 state download; state e-file additional).
TurboTax Desktop Home & Business: Around $130 (includes 5 federal e-files, 1 state download; state e-file additional).
Step 5: Maximize Your Savings and Get the Best Deal
File Early: TurboTax often offers lower prices earlier in the tax season. The closer you get to the April deadline, the higher the prices tend to be.
Look for Discounts: Keep an eye out for promotions, especially through financial institutions, employers, or specific affiliations.
Consider Free Options:
IRS Free File Program: If your Adjusted Gross Income (AGI) is below a certain threshold (e.g., $84,000 for tax year 2024), you might qualify to use TurboTax (or other software) for free through the IRS Free File Program. This is different from TurboTax's own Free Edition and often covers more complex scenarios within the income limit.
Cash App Taxes or FreeTaxUSA: These are popular alternatives that offer free federal filing and often significantly lower state filing fees, even for more complex returns. While their user interface might not be as polished as TurboTax, they can be great money-saving options if you're comfortable.
Don't Pay Until You File: With TurboTax Online, you don't pay until you're ready to print or e-file your return. This allows you to explore the software and see which version it recommends for your situation before committing to a purchase.
In summary, the cost of filing with TurboTax can range from absolutely free for very simple returns to several hundred dollars for complex returns with full-service expert assistance. Your personal tax situation is the key determinant.
Frequently Asked Questions about TurboTax Pricing
Here are 10 related FAQs to help you further understand TurboTax costs:
How to know if I qualify for TurboTax Free Edition?
You generally qualify for TurboTax Free Edition if you have a simple tax return, typically meaning W-2 income, taking the standard deduction, and only claiming credits like the Child Tax Credit or Earned Income Tax Credit (EITC). If you have investments, rental property, or self-employment income, you likely won't qualify for the Free Edition.
How to avoid state filing fees with TurboTax?
For online versions, state filing fees are generally unavoidable with paid TurboTax products. However, some desktop versions might allow you to print and mail your state return for free, though e-filing still incurs a fee.
How to get the best price on TurboTax?
File early in the tax season (typically December or January) to take advantage of introductory pricing. Also, look for promotional offers or discounts from various retailers, financial institutions, or through the IRS Free File program if you qualify based on income.
How to upgrade my TurboTax product if my tax situation becomes more complex?
As you enter your tax information, TurboTax will often prompt you to upgrade to a higher-tiered product if your inputs require forms or features not supported by your current version. You'll typically pay the difference in cost.
How to pay for TurboTax?
You can usually pay for TurboTax using a credit card or by having the fees deducted directly from your federal tax refund (though this option often incurs an additional processing fee).
How to get live expert help with TurboTax?
You can opt for TurboTax Live Assisted for on-demand expert advice and a final review, or TurboTax Live Full Service if you want a tax professional to prepare and file your entire return for you. Both are premium, paid services.
How to find out the exact price before I file?
TurboTax shows you the final price of your chosen product and any additional fees (like state filing or refund processing) before you proceed to payment and filing. You won't be charged until you're ready to submit your return.
How to tell the difference between TurboTax Online and Desktop versions?
TurboTax Online is cloud-based and accessed through a web browser, while TurboTax Desktop is software you purchase and install on your computer. Desktop versions often include multiple federal e-files and state preparation for one state in the initial purchase price, with separate fees for state e-filing.
How to know if TurboTax Live Full Service is worth the cost?
TurboTax Live Full Service is generally worth it if you have a complex tax situation, prefer to delegate the entire tax preparation process to an expert, or simply want the highest level of assurance that your taxes are done accurately. The value depends on your comfort level and the complexity of your return.
How to get an audit defense with TurboTax?
While TurboTax offers free audit guidance, for full audit representation, you'll need to purchase their separate "Audit Defense" product. This provides a tax professional to represent you if you receive an audit letter from the IRS.