Tax season can feel like a maze, and figuring out the cost of tax software like TurboTax is often one of the first hurdles. It's not a one-size-fits-all answer, as TurboTax offers various editions designed for different tax situations. So, let's break down exactly how much you might have to pay for TurboTax, step by step!
Understanding TurboTax Pricing: A Comprehensive Guide
Step 1: Discover Your Tax Persona – Are You a Simple Filer or a Tax Guru?
Before we dive into specific prices, let's figure out which TurboTax edition might be right for you. Think about your tax situation. Do you have a W-2 and take the standard deduction? Or do you own a home, have investments, or run a small business? Your answers will guide you to the appropriate TurboTax product.
The "Simple Filer": This is for those with very straightforward tax situations, typically filing a Form 1040 with the standard deduction. This usually includes W-2 income, some limited interest/dividend income, Earned Income Tax Credit (EITC), Child Tax Credit (CTC), and student loan interest deductions.
The "Homeowner/Deduction Maximizer": If you own a home, itemize deductions, or have significant charitable contributions, you'll likely need a step up from the simplest option.
The "Investor/Landlord": For those with investments (stocks, bonds, cryptocurrency) or rental properties, specialized forms and guidance are essential.
The "Self-Employed/Small Business Owner": If you're a freelancer, independent contractor, gig worker, or own a small business (filing Schedule C), your tax needs are more complex.
Step 2: Navigating TurboTax Editions and Their Costs (Approximate 2024-2025 Pricing)
TurboTax offers several online and desktop editions, each with different features and price points. It's important to note that prices can fluctuate throughout the tax season, often increasing closer to the tax deadline. The prices below are approximate for the 2024 tax year (filed in 2025).
TurboTax Online Editions (Do It Yourself):
These are web-based versions you access through your browser.
TurboTax Free Edition:
Federal: $0
State: $0 (for one state)
Who it's for: As mentioned, simple tax returns (Form 1040) with standard deductions, W-2 income, EITC, CTC, and student loan interest. Approximately 37% of taxpayers qualify.
Key takeaway: If your tax situation is truly simple, this is your best bet to file for free. Be aware of the limitations, as adding certain forms or schedules will trigger an upgrade.
TurboTax Deluxe:
Federal: Approximately $39 - $60
State: Approximately $39 - $64 per state (additional to federal)
Who it's for: Homeowners, those with significant deductions, and individuals who want to maximize their common deductions and credits (e.g., mortgage interest, property taxes, charitable contributions).
What you get: All Free Edition features, plus guidance for homeowners, a charitable donation calculator, and the ability to itemize deductions.
TurboTax Premier:
Federal: Approximately $89 - $129
State: Approximately $39 - $64 per state (additional to federal)
Who it's for: Investors (stocks, bonds, mutual funds, cryptocurrency) and rental property owners.
What you get: All Deluxe features, plus specialized guidance for investments, reporting investment income and expenses, and managing rental property income and deductions.
TurboTax Self-Employed (formerly Home & Business):
Federal: Approximately $120 - $149
State: Approximately $39 - $64 per state (additional to federal)
Who it's for: Freelancers, independent contractors, gig workers, and small business owners who file a Schedule C (Profit or Loss from Business).
What you get: All Premier features, plus specific guidance for self-employment income and expenses, industry-specific deductions, mileage and vehicle deductions, and home office expense help.
TurboTax Live Editions (Get Expert Help):
These versions include access to a tax expert for assistance or a full review.
TurboTax Live Assisted:
Federal: Starting around $89 - $219 (depending on the edition: Basic, Deluxe, Premier, Self-Employed)
State: Additional fee per state
Who it's for: Users who want to prepare their own taxes but want the option to connect with a tax expert for guidance and a final review before filing.
What you get: All the features of the corresponding "Do It Yourself" edition, plus unlimited, year-round tax advice from a tax expert and an expert review of your return before you file.
TurboTax Live Full Service:
Federal: Starting around $169 - $400+ (depending on the complexity of your return)
State: Additional fee per state
Who it's for: Individuals who prefer to have a dedicated tax expert do their taxes for them from start to finish.
What you get: You provide your tax documents, and a TurboTax Live expert prepares and files your return, backed by their 100% accurate, Expert Approved Guarantee. This is essentially having a virtual tax preparer.
TurboTax Desktop Software (CD/Download):
These are software programs you purchase and install on your computer. They generally allow for filing multiple federal returns (usually up to 5) and often include one state program download. However, state e-filing typically incurs an additional fee per state.
TurboTax Deluxe Desktop: Federal: Around $60 - $80
TurboTax Premier Desktop: Federal: Around $90 - $120
TurboTax Home & Business Desktop: Federal: Around $100 - $130
State E-file Fee (Desktop): Approximately $25 per state (can be avoided by printing and mailing the state return).
Step 3: Understanding Potential Additional Costs
Beyond the base price of the software, there are a few other things that can impact your final bill:
State Filing Fees: As you've seen, state filing is almost always an additional cost, unless you qualify for the Free Edition (which typically includes one free state). The cost can vary, but expect around $39-$64 per state for online versions and an e-file fee of around $25 for desktop versions.
Paying with Your Refund: TurboTax offers an option to deduct your TurboTax fees directly from your federal tax refund. While convenient, this service often comes with an additional processing fee, which can be around $40-$45.
Audit Defense (MAX or similar services): For an extra fee (often around $40-$60), you can purchase audit defense from a third-party provider (like TaxAudit) through TurboTax. This provides assistance in case you're audited by the IRS or your state. Be aware that the coverage period for these services might be limited.
Premium Services/Add-ons: Sometimes, certain features or higher levels of support are bundled into "Premium Services" which increase the overall cost. Pay close attention during the checkout process to see what's included.
Step 4: Smart Strategies to Minimize Your TurboTax Costs
File Early: Prices for TurboTax (and other tax software) often start lower at the beginning of tax season and increase as the April deadline approaches. Filing early can save you money.
Determine Your True Needs: Don't pay for features you don't need. Carefully review your tax situation and choose the lowest-tier product that adequately covers your forms and deductions. You can often start with a lower version and upgrade if needed.
Check for Discounts and Promotions: Keep an eye out for special offers, particularly early in the tax season. Military members, for example, may qualify for free filing with TurboTax.
Consider IRS Free File: If your adjusted gross income (AGI) is below a certain threshold (which was $84,000 for tax year 2024, filed in 2025), you might qualify for IRS Free File. While TurboTax no longer directly participates in the IRS Free File program, other reputable providers do, allowing you to file federal and often state taxes for free.
Desktop vs. Online: If you file multiple federal returns or prefer to keep the software on your computer, a desktop version might be more cost-effective in the long run, even with state e-file fees.
Step 5: Reviewing Your Fees Before You File
TurboTax is generally transparent about its fees before you finalize your return.
Online Versions: You'll typically see a breakdown of your federal and state fees as you progress through the filing process, often on a "My Fees" or "Review & Pay" screen.
Desktop Versions: The cost will be clearly displayed when you go to print or e-file your return.
Always take a moment to review the charges before you click that final "File My Return" button to ensure you understand what you're paying for.
10 Related FAQ Questions
How to determine which TurboTax version I need? To determine the correct TurboTax version, assess your tax situation:
Simple W-2 income and standard deduction? Free Edition.
Homeowner or significant itemized deductions? Deluxe.
Investments or rental property income? Premier.
Self-employed income (Schedule C)? Self-Employed.
How to avoid paying for TurboTax state filing? You can avoid state filing fees with the TurboTax Free Edition if your tax situation qualifies. For paid versions, you may be able to print and mail your state return instead of e-filing, as desktop versions typically charge an e-file fee for state returns.
How to get TurboTax for free? You can get TurboTax for free if you qualify for their Free Edition, which covers simple Form 1040 returns. Additionally, some taxpayers may qualify for IRS Free File through other providers if their AGI is below the annual threshold.
How to reduce my TurboTax fees? To reduce TurboTax fees, file early in the season, ensure you're using the lowest-tier product that meets your needs, opt out of add-ons like "Pay with Your Refund" (which incurs an extra fee), and consider if the desktop version is more cost-effective for multiple federal returns.
How to know if I qualify for TurboTax Free Edition? You typically qualify for TurboTax Free Edition if you file a simple Form 1040 with only W-2 income, take the standard deduction, and claim common credits like the Earned Income Tax Credit (EITC) or Child Tax Credit (CTC). Complex tax situations usually require an upgrade.
How to pay for TurboTax? You can generally pay for TurboTax using a credit card or debit card. For online versions, you might also have the option to pay your fees from your federal tax refund, though this usually comes with an additional processing fee.
How to get a refund for TurboTax fees? TurboTax offers various guarantees, including a "Maximum Refund Guarantee." If you find a larger refund with another tax preparation method (by filing an amended return), they may refund your applicable TurboTax federal and/or state purchase price. Review their guarantees for full details.
How to upgrade my TurboTax edition? You can typically upgrade your TurboTax edition at any point during the filing process if you realize your tax situation requires more features. The software will usually prompt you to upgrade if you attempt to enter information not supported by your current version.
How to determine if TurboTax Live is worth the cost? TurboTax Live is worth the cost if you desire expert guidance or a full review of your return. If you're confident in preparing your own taxes and only need software, the "Do It Yourself" editions are more economical.
How to get audit defense with TurboTax? You can purchase audit defense as an add-on service through TurboTax, typically provided by TaxAudit. This service offers assistance and representation in the event of an IRS or state audit. Ensure you understand the coverage period and limitations before purchasing.