"How much will TurboTax cost me?" This seemingly simple question often leads to a maze of pricing tiers, add-ons, and last-minute surcharges. But don't worry, we're here to help you navigate the landscape of TurboTax pricing for the 2024 tax year (filed in 2025) and ensure you get the best value for your specific tax situation.
Step 1: Let's start by figuring out your tax complexity! Before we dive into the nitty-gritty of TurboTax's various offerings, let's take a quick moment to consider your personal tax situation. Are you a simple W-2 filer with no major changes? Do you own a home, have investments, or are you self-employed? Your answers to these questions will be the biggest determinant of your TurboTax cost.
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Think about your income sources: Do you primarily have income from a W-2 (your employer)? Do you have interest or dividend income? Did you sell stocks or cryptocurrency? Do you own a rental property?
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Consider your deductions and credits: Are you taking the standard deduction, or do you plan to itemize? Do you qualify for credits like the Child Tax Credit, Earned Income Tax Credit, or education credits?
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Assess your self-employment status: Do you have a side gig, freelance work, or own a small business where you receive 1099-NEC or 1099-K forms?
Keeping these factors in mind will help you pinpoint the TurboTax version that best suits your needs, and ultimately, your budget.
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| How Much Will Turbotax Cost Me |
Step 2: Understanding TurboTax's Core Offerings
TurboTax offers various products, both online and desktop (CD/download), designed to cater to different tax complexities. The prices often fluctuate throughout the tax season, with early filers sometimes seeing lower rates. Prices also tend to increase closer to the tax filing deadline (April 15th).
2.1 TurboTax Online Editions: Convenience at Your Fingertips
The online versions of TurboTax are accessible from any device with an internet connection, saving your progress as you go.
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TurboTax Free Edition:
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Cost: $0 Federal, $0 State.
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Who it's for: This is designed for simple tax returns only. This typically means filers who take the standard deduction and only have W-2 income, along with a few common credits like the Earned Income Tax Credit (EITC) and Child Tax Credit (CTC), or the student loan interest deduction.
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Limitations: If your tax situation involves itemizing deductions, investment income (Schedule D), rental property income (Schedule E), or self-employment income (Schedule C), you will not qualify for the Free Edition and will need to upgrade. Approximately 37% of filers qualify for the Free Edition.
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TurboTax Deluxe:
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Cost: Typically around $89 for Federal filing, plus an additional $64 per state filed (prices can vary).
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Who it's for: This is the most popular choice for homeowners and those who need to itemize deductions. It helps you maximize common deductions and credits such as mortgage interest, property taxes, and charitable contributions.
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Key Features: Helps you uncover over 350 deductions and credits, and includes a charitable donation calculator.
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TurboTax Premium (formerly Premier & Self-Employed):
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Cost: Generally around $149 for Federal filing, plus an additional $64 per state filed (prices can vary).
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Who it's for: This tier is designed for investors, rental property owners, freelancers, and self-employed individuals. It combines the features of the former Premier and Self-Employed packages.
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Key Features: Covers investment income (stocks, cryptocurrency, bonds, K-1s), rental property income and expenses, and detailed guidance for business income and expenses (Schedule C), including industry-specific deductions, mileage and vehicle deductions, and home office expense help. It also allows for importing 1099-NEC or 1099-K forms.
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2.2 TurboTax Live Options: When You Need Expert Help
TurboTax Live offers varying levels of assistance from tax experts, adding a layer of professional support to your DIY filing experience.
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TurboTax Live Assisted:
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Cost: Prices vary widely based on your tax complexity, starting from around $89 for federal (Deluxe level) and up to $219 for federal (Premium level), plus $59-$69 per state filed.
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Who it's for: This option is for those who want to prepare their own taxes but desire unlimited live tax advice from a tax expert and a final review of their return before filing.
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Key Features: Year-round access to tax experts via one-way video (you see them, they see your screen), and an expert review of your completed tax return to ensure accuracy and maximize deductions.
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TurboTax Live Full Service:
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Cost: Starts around $129 for federal, but can exceed $2,000 for complex situations, plus $69 per state filed.
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Who it's for: This is for individuals who prefer to have a dedicated tax expert prepare and file their taxes for them.
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Key Features: You're matched with a tax expert who handles everything, from gathering your documents to preparing and filing your return. This is the most hands-off approach.
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QuickTip: Don’t just scroll — process what you see.
2.3 TurboTax CD/Download Software: For Desktop Users
If you prefer to install software on your computer and have more control over your tax data, the CD/Download versions might be for you. These generally include 5 federal e-files.
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TurboTax Basic:
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Cost: Around $50 for federal. State downloads and e-files are usually separate.
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Who it's for: Similar to the online Free Edition, but as desktop software. Best for simple tax situations with W-2 income and standard deductions.
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TurboTax Deluxe (CD/Download):
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Cost: Around $80 for federal (often includes one state download). State e-file typically costs an additional $25, or you can print and mail for free.
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Who it's for: Homeowners and those who need to itemize deductions.
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TurboTax Premier (CD/Download):
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Cost: Around $115 for federal (often includes one state download). State e-file typically costs an additional $25.
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Who it's for: Investors and rental property owners.
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TurboTax Home & Business (CD/Download):
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Cost: Around $130 for federal (often includes one state download). State e-file typically costs an additional $25.
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Who it's for: Self-employed individuals, freelancers, and small business owners. Includes extra guidance for business expenses and startup deductions.
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Step 3: Unpacking Potential Additional Costs
Beyond the core product prices, there are a few other fees you might encounter with TurboTax.
3.1 State Filing Fees: The Almost-Always-Extra Cost
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For online versions, expect to pay an additional fee for each state tax return you need to file. This commonly ranges from $59 to $64 per state.
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For CD/Download versions, while some versions include one state download, there's usually an additional e-file fee for state returns, typically around $25. You can usually avoid this by printing and mailing your state return.
3.2 Refund Processing Service Fee: Paying from Your Refund
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If you choose to have your TurboTax fees deducted directly from your federal tax refund, TurboTax often charges an additional "refund processing fee" or "money movement fee," which can be around $40.
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To avoid this fee, simply pay for TurboTax directly with a credit or debit card when you file.
3.3 Audit Defense/Support: Peace of Mind for an Extra Price
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TurboTax offers free one-on-one audit guidance from their staff if you filed with them.
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However, for full audit representation, where a tax professional represents you before the IRS, you can purchase TurboTax Audit Defense as an add-on. This is typically part of their PLUS or MAX bundles and incurs an additional charge. The cost for this can vary.
3.4 TurboTax Live Upgrades: Deciding on Real-Time Help
Tip: Don’t skip the details — they matter.
Even if you start with a DIY version, you might find yourself needing a bit more help. TurboTax makes it easy to upgrade to their Live Assisted or Full Service options at any point during your filing process. Be aware that these upgrades come with their own pricing structure, as detailed in Step 2.
Step 4: Maximizing Savings and Avoiding Unnecessary Costs
Now that you know the potential costs, here are some strategies to keep your TurboTax bill as low as possible.
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File Early: As mentioned, TurboTax often offers promotional pricing at the beginning of the tax season. Prices tend to increase as the April 15th deadline approaches.
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Determine Your True Needs: Don't automatically jump for the most expensive version. Carefully review your tax situation (Step 1) to identify which features you truly require. If you have a simple return, sticking with the Free Edition or Basic CD/Download will save you money.
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Avoid the Refund Processing Fee: Always pay with a credit or debit card if you can. The $40 fee for deducting from your refund is easily avoidable.
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Consider Alternatives (for very simple returns): For truly simple returns (Form 1040 only), you might even qualify for IRS Free File, which partners with various tax software providers (including sometimes a version of TurboTax if your AGI is below a certain threshold, which for 2024 tax year is $84,000). Check the IRS website for more details.
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Look for Discounts: Keep an eye out for potential discounts through financial institutions, credit card offers, or affiliations. NerdWallet, for instance, sometimes offers discounts on TurboTax.
Step 5: The Final Calculation – Putting It All Together
To get a precise estimate of your TurboTax cost, follow these steps:
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Identify your tax complexity: Based on Step 1, determine which TurboTax product (Free, Deluxe, Premium, or a Live option) best fits your federal tax situation.
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Check current pricing: Visit the official TurboTax website (or a reputable financial news site that tracks their pricing) to see the most up-to-date prices for your chosen federal product. Remember, prices can change!
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Add state filing fees: If you need to file a state return, add the applicable state fee for your chosen online or desktop version.
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Consider add-ons: Decide if you want Audit Defense or any other premium features.
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Factor in refund processing: If you absolutely need to pay from your refund, add the $40 processing fee.
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Compare online vs. desktop: If both options suit you, compare the total cost of the online version (federal + state) versus the desktop version (federal + state e-file fee).
By carefully following these steps, you'll arrive at a clear understanding of what TurboTax will likely cost you for the upcoming tax season.
10 Related FAQ Questions
How to choose the right TurboTax version for my needs?
To choose the right TurboTax version, assess your income sources (W-2, investments, self-employment), deductions (standard vs. itemized), and if you need expert assistance. The Free Edition is for simple returns, Deluxe for homeowners/itemizers, Premium for investors/self-employed, and Live options for expert help.
QuickTip: Skip distractions — focus on the words.
How to avoid extra fees on TurboTax?
To avoid extra fees, pay for TurboTax directly with a credit/debit card instead of having the fees deducted from your federal refund (which incurs a $40 processing fee). Also, ensure you select the appropriate product version for your tax complexity to avoid unnecessary upgrades.
How to know if I qualify for TurboTax Free Edition?
You generally qualify for TurboTax Free Edition if you have a simple tax return, meaning only W-2 income, take the standard deduction, and claim common credits like the Child Tax Credit or Earned Income Tax Credit. It does not support itemized deductions, investment income, or self-employment income.
How to switch from one TurboTax version to another?
You can typically upgrade to a higher-tiered TurboTax product within the software at any point before filing if you find your tax situation requires more features. Downgrading might be possible if you haven't entered data that necessitates a higher version, but it's less common.
How to find the most current TurboTax pricing?
The most current TurboTax pricing can always be found on the official TurboTax website. Prices are subject to change, especially as the tax season progresses towards the filing deadline.
QuickTip: Compare this post with what you already know.
How to file state taxes with TurboTax?
When using TurboTax online, you'll be prompted to add your state return after completing your federal return, and an additional fee will apply for each state. For desktop software, some versions include one state download, but a separate e-file fee is typically charged for submitting it electronically.
How to get tax expert help with TurboTax?
You can get tax expert help with TurboTax by upgrading to TurboTax Live Assisted (for unlimited advice and a final review) or TurboTax Live Full Service (where an expert prepares and files your taxes for you).
How to pay for TurboTax without a refund processing fee?
To pay for TurboTax without the refund processing fee, simply select the option to pay by credit card or debit card when you are ready to file your return.
How to get a discount on TurboTax?
Discounts on TurboTax are often available at the beginning of the tax season or through partnerships with financial institutions. Keep an eye on promotions on the TurboTax website or through reputable financial news sources.
How to handle self-employment income with TurboTax?
Self-employment income requires the TurboTax Premium online edition or the TurboTax Home & Business CD/Download software. These versions are designed to help you report Schedule C income and expenses, and find industry-specific deductions.
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