Preparing your taxes can often feel like navigating a complex maze, and when it comes to choosing tax software, one name consistently comes to mind: TurboTax. But the big question for many is, how much does it actually cost for TurboTax to do your taxes? The answer, as you'll soon discover, isn't a single, flat fee. It varies significantly based on your individual tax situation, the level of assistance you need, and even when you decide to file.
Let's embark on a detailed journey to understand the TurboTax pricing structure, helping you determine which option is the best fit for your wallet and your peace of mind.
Step 1: Assess Your Tax Situation - Are You a "Simple" Filer?
Before you even think about opening your wallet, the absolute first step is to figure out how complex your tax return is. TurboTax often advertises a "Free Edition," and for a significant portion of the population, this truly is free.
Sub-heading: What Qualifies as a "Simple" Tax Return?
TurboTax's Free Edition is generally designed for individuals with:
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W-2 income only: This means your income primarily comes from an employer who provides you with a W-2 form.
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Standard deduction: You're not itemizing deductions (like mortgage interest, charitable contributions, or medical expenses).
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Limited interest and dividend income: Small amounts reported on a 1099-INT or 1099-DIV.
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Common tax credits: Such as the Child Tax Credit or the Earned Income Tax Credit (EITC).
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Student loan interest deduction: If you paid interest on student loans.
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Taxable qualified retirement plan distributions.
Roughly 37% of filers qualify for the TurboTax Free Edition. If your situation falls neatly into these categories, you could be looking at a zero-cost federal and state filing!
Engage the user: Take a moment to consider your last year's tax return. Did you mostly just have a W-2? Did you itemize, or take the standard deduction? This quick self-assessment will be your first guide!
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| How Much Does It Cost For Turbotax To Do Your Taxes |
Step 2: Explore the "Do-It-Yourself" TurboTax Online Editions
If your tax situation is a bit more involved than what the Free Edition covers, you'll need to step up to one of TurboTax's paid online editions. These are designed for you to prepare your taxes yourself, with the software guiding you through the process. Prices for these versions typically increase as the filing season progresses, so filing earlier can sometimes save you money.
QuickTip: Stop to think as you go.
Sub-heading: TurboTax Deluxe: Maximizing Deductions
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Cost: As of early 2025, the federal filing for TurboTax Deluxe online typically starts around $89, with an additional fee for state filing (often around $64-$69 per state).
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Who it's for: This is TurboTax's most popular paid version. It's ideal for homeowners, those with significant deductions like mortgage interest, property taxes, charitable contributions, and medical expenses. It helps you maximize these deductions and credits to get your biggest refund.
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Key features: Deduction finder, charitable donation calculator, and guidance for homeowners.
Sub-heading: TurboTax Premier: Investments and Rental Properties
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Cost: Federal filing for TurboTax Premier online generally starts around $149, plus the state fee (typically $64-$69 per state).
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Who it's for: This edition is tailored for investors and those with rental property income. If you have income from stocks, bonds, mutual funds, cryptocurrency transactions, or rental properties, Premier is designed to handle these complexities.
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Key features: Investment income reporting, rental property income and expense management, and automatic import of investment data from participating financial institutions.
Sub-heading: TurboTax Self-Employed: For the Freelancers and Gig Workers
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Cost: The federal filing for TurboTax Self-Employed online can start around $179, with the usual state fee of $64-$69 per state.
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Who it's for: This is the go-to for freelancers, independent contractors, small business owners, and gig workers (those who receive 1099-NEC income). It's built to help you find industry-specific deductions and expenses.
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Key features: Tools for self-employment income and expenses (Schedule C), mileage and vehicle deductions, home office expense help, and guidance on startup tax deductions.
Step 3: Consider TurboTax Live: Expert Help When You Need It
TurboTax Live offers a significant upgrade by providing access to a tax expert. You still do your taxes yourself, but a credentialed tax professional (CPA or EA) is available to answer your questions and, depending on the Live tier, review your return.
Sub-heading: TurboTax Live Assisted: Guidance Along the Way
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Cost: These versions are naturally pricier than their "do-it-yourself" counterparts. For example, TurboTax Live Assisted Deluxe can start around $139 (federal) + state fees, while Live Assisted Premier could be around $209 (federal) + state fees, and Live Assisted Self-Employed might be around $219 (federal) + state fees.
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Who it's for: This is for those who want the confidence of expert help without the full cost of having someone else do their taxes. You get unlimited on-demand advice from a tax expert via video or chat as you prepare your return, and a final review of your self-prepared return before filing.
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Benefits: Peace of mind knowing an expert has reviewed your work, especially helpful for trickier situations or if you're unsure about certain deductions.
Sub-heading: TurboTax Live Full Service: Hand It All Over
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Cost: This is the premium offering, where a dedicated tax expert handles your taxes from start to finish. Prices for Full Service can range significantly based on complexity, with starting points around $119 for simple situations but quickly rising to $409 or more for complex self-employment or business returns, plus state fees.
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Who it's for: Individuals who prefer to have a tax professional prepare and file their taxes for them, saving time and eliminating the stress of tax preparation.
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Benefits: Maximum convenience, expert accuracy, and often includes audit support.
QuickTip: Go back if you lost the thread.
Step 4: Factor in State Filing Fees
This is a crucial point many people overlook. While federal filing costs are the primary focus, state tax filing is almost always an additional fee with TurboTax, unless you qualify for the Free Edition for both federal and state.
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Typical State Cost: For paid versions of TurboTax, expect to pay approximately $64-$69 per state for each state return you need to file. This applies whether you're using a "do-it-yourself" online version or one of the TurboTax Live options.
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Important Note: If you reside in a state with no income tax, this fee won't apply to you. However, if you worked in one state and lived in another, you might need to file multiple state returns, incurring multiple state fees.
Step 5: Beware of Additional Fees and Upsells
While the base price covers a lot, TurboTax, like many software providers, has optional add-ons that can increase your total cost.
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Refund Processing Service Fee: If you opt to have your TurboTax fees deducted from your federal or state refund, a separate "Refund Processing Service" fee (around $40) is typically applied. This can be convenient if you don't want to pay upfront, but it adds to the overall cost.
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Audit Defense: While TurboTax offers free audit guidance, full audit representation is often an additional service, usually provided through a third-party partner like TaxAudit. This can cost extra, typically around $40-$50.
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Desktop Software: If you prefer to purchase and install TurboTax software on your computer (rather than using the online version), the pricing model is slightly different. The desktop versions (Basic, Deluxe, Premier, Home & Business) typically include federal e-file for up to five returns and one state download. Additional state e-files or downloads may incur further fees.
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Beware of automatic upgrades: Sometimes, as you input information, TurboTax might suggest an upgrade to a higher-priced version if it detects a situation that could be better handled by that version. Always review if the upgrade is truly necessary for your specific circumstances.
Step 6: Look for Discounts and Promotions
Tax software companies often offer discounts, especially early in the tax season.
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Early Bird Specials: Filing your taxes well before the April deadline can sometimes qualify you for lower prices.
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Specific Offers: Keep an eye out for promotions from financial institutions, employers, or even TurboTax directly, which might offer a reduced price or a limited-time free filing for certain users (e.g., if you didn't use TurboTax last year and file via their mobile app).
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IRS Free File Program: While TurboTax no longer participates in the IRS Free File Program for all eligible taxpayers directly, many taxpayers with an Adjusted Gross Income (AGI) up to $84,000 for tax year 2024 can find free guided tax preparation through other providers via the IRS Free File program website. It's worth checking if you qualify.
Remember: The stated prices are always subject to change by Intuit (the maker of TurboTax) and can vary based on your actual tax situation and the forms you use.
10 Related FAQ Questions
Here are 10 frequently asked questions about TurboTax costs, starting with "How to":
QuickTip: Pause after each section to reflect.
How to determine if I qualify for TurboTax Free Edition?
You generally qualify if you have W-2 income, take the standard deduction, have limited interest/dividend income, and claim common credits like the Child Tax Credit or EITC. TurboTax will guide you through questions to determine your eligibility.
How to minimize the cost of using TurboTax?
File early in the tax season to potentially get lower prices, avoid additional services like refund processing fees, and ensure you're using the lowest-priced version that meets your specific tax needs.
How to find current TurboTax pricing for the upcoming tax season?
Visit the official TurboTax website (turbotax.intuit.com) and navigate to their "Compare Products" or "Pricing" section. Prices are typically updated for the new tax year around late December or early January.
How to know if I need TurboTax Deluxe, Premier, or Self-Employed?
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Deluxe: If you itemize deductions (mortgage interest, property taxes, charitable donations).
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Premier: If you have investment income (stocks, bonds, crypto) or rental property.
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Self-Employed: If you are a freelancer, independent contractor, or small business owner with 1099-NEC income.
How to avoid the refund processing service fee?
Pay for your TurboTax product directly with a credit card or bank account instead of having the fees deducted from your tax refund.
QuickTip: Every section builds on the last.
How to get live expert help without paying for TurboTax Live Full Service?
Consider TurboTax Live Assisted. This option allows you to prepare your own return with the ability to chat with or video call a tax expert for advice and a final review before filing.
How to handle multiple state tax returns with TurboTax?
Each state return typically incurs a separate fee in addition to your federal filing cost. TurboTax allows you to prepare and e-file multiple state returns within the same account.
How to access my prior year's tax returns through TurboTax?
If you filed with TurboTax in a previous year, you can usually access your prior year's returns by logging into your TurboTax account. This also helps pre-fill much of your information for the current year.
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, allow you to prepare multiple federal returns, and may be preferred if you have privacy concerns about cloud storage. Prices and features can differ slightly.
How to contact TurboTax customer support if I have questions about pricing?
You can usually find their customer support options (phone, chat, community forums) on the TurboTax website's "Help" or "Support" section. Keep in mind that support hours and availability can vary throughout the tax season.
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