You're wondering about the cost of TurboTax, and that's a fantastic question to ask! It's not always a straightforward answer, as the price you pay for TurboTax depends heavily on your unique tax situation and the level of assistance you need. Let's break it down step-by-step so you can confidently navigate the world of tax filing.
How Much Do I Have to Pay for TurboTax? A Comprehensive Guide
Getting your taxes done can feel like a daunting task, and understanding the associated costs of tax software is a crucial part of the process. TurboTax, one of the most popular tax preparation platforms, offers a variety of options, from completely free to premium services with expert assistance. The key is to match the product to your specific needs to avoid overpaying.
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| How Much Do I Have To Pay For Turbotax |
Step 1: Assess Your Tax Situation - The Foundation of Your Cost
Before you even look at TurboTax's pricing page, take a moment to understand your own tax complexity. This is the most critical first step to determine which TurboTax product (and therefore, how much you'll pay) is right for you. Grab a pen and paper, or even just open a mental checklist, and consider the following:
What type of income did you have?
Simple W-2 income only? (Income from an employer)
Interest and Dividends? (From savings accounts, investments)
Self-employment income (1099-NEC)? (Freelancing, gig work, small business)
Rental property income?
Stock sales, cryptocurrency, or other investments?
Unemployment income (1099-G)?
Foreign income?
What deductions and credits are you planning to claim?
Are you taking the standard deduction? (This is the simplest option for most)
Are you itemizing deductions? (Mortgage interest, charitable contributions, medical expenses, etc.)
Do you have dependents and plan to claim child tax credits or dependent care credits?
Are you claiming education credits or student loan interest deductions?
Do you qualify for the Earned Income Tax Credit (EITC)?
Do you need to file a state tax return?
Most states have their own income tax, and filing these is almost always an additional cost with TurboTax, even if your federal return is free.
Do you want expert help?
Are you comfortable doing your taxes yourself, or do you want a tax professional to review your return or even prepare it for you?
Answering these questions will guide you directly to the appropriate TurboTax version and help you avoid unnecessary upgrades.
Step 2: Understand the TurboTax Product Tiers - DIY vs. Assisted vs. Full Service
TurboTax generally offers three main approaches, each with varying costs and levels of support:
Sub-heading: A. Do It Yourself (DIY) Online Editions
This is where most people start. You input your information, and TurboTax guides you through the process. The cost increases with the complexity of your tax situation.
TurboTax Free Edition:
Who it's for: Individuals with simple tax returns – typically W-2 income, standard deduction, limited interest/dividend income, and common credits like the Earned Income Tax Credit (EITC) and Child Tax Credit.
What it covers: Federal Form 1040 only.
Cost: $0 for federal, typically $0 for state filing (for qualifying simple returns).
Important Note: Be cautious! While it's advertised as free, many situations quickly push you into a paid tier. If you have any schedules beyond a basic 1040, you'll likely need to upgrade.
TurboTax Deluxe:
Who it's for: Taxpayers looking to maximize deductions and credits, especially homeowners, those with charitable contributions, or significant medical expenses. It allows for itemized deductions (Schedule A).
What it covers: Federal and state tax preparation.
Estimated Cost (Federal): ~$89 - $99 (online version).
Estimated Cost (State): ~$64 - $69 per state (additional fee).
TurboTax Premier:
Who it's for: Individuals with investment income (stocks, bonds, cryptocurrency, ESPPs), and/or rental property income.
What it covers: Federal and state tax preparation, with specialized guidance for investments and rental properties.
Estimated Cost (Federal): ~$149 (online version).
Estimated Cost (State): ~$64 - $69 per state (additional fee).
TurboTax Self-Employed:
Who it's for: Freelancers, independent contractors, gig workers, and small business owners who file a Schedule C (Profit or Loss from Business). This is essential if you receive 1099-NEC forms.
What it covers: Federal and state tax preparation, with comprehensive tools for business income and expenses, including industry-specific deductions.
Estimated Cost (Federal): ~$129 - $179 (online version).
Estimated Cost (State): ~$59 - $69 per state (additional fee).
Note for Multi-Member LLCs/Partnerships: If your LLC is a multi-member LLC (taxed as a partnership), you'll likely need TurboTax Business Desktop Software, which is a separate product.
Sub-heading: B. TurboTax Live Assisted
QuickTip: Slow down when you hit numbers or data.
This option combines the DIY approach with on-demand access to a tax expert. You prepare your return, and an expert can answer your questions, offer guidance, and perform a final review before you file.
Who it's for: Those who want the confidence of expert eyes on their return without paying for full preparation.
Cost: Generally significantly higher than the DIY online editions.
Live Assisted Basic: ~$89 - $119 (Federal) + state fees.
Live Assisted Deluxe: ~$129 - $179 (Federal) + state fees.
Live Assisted Premier: ~$199 - $229 (Federal) + state fees.
Live Assisted Self-Employed: ~$209 - $260 (Federal) + state fees.
State fees are typically around $59-$69 per state for Live Assisted products.
Sub-heading: C. TurboTax Live Full Service
With this premium option, a dedicated tax expert handles your entire tax return for you, from start to finish. You simply upload your documents, and they do the rest.
Who it's for: Individuals who want a completely hands-off approach and prefer a professional to handle their taxes.
Cost: This is the most expensive option.
Prices vary widely based on your tax complexity, but can start from ~$129 and go up to $400+ for federal, plus additional state fees (often around $69 per state).
For complex situations like self-employment or rental properties, the cost can easily exceed $500.
Sub-heading: D. TurboTax Desktop Software (CD/Download)
TurboTax also offers desktop software versions that you purchase once and install on your computer. These are generally more cost-effective if you need to file multiple federal returns (e.g., for family members) or if you prefer to work offline.
Basic: Similar to Free Edition, but with added flexibility.
Deluxe: For maximizing deductions. Often includes one state download.
Premier: For investments and rental properties. Often includes one state download.
Home & Business: For self-employed individuals and small business owners. Often includes one state download.
Business: Specifically for multi-member LLCs, partnerships, S-Corps, C-Corps, and trusts (Form 1065, 1120, 1120S, 1041). This is a separate product from the personal tax software.
Cost: One-time purchase fee, typically ranging from ~$60 (Basic) to ~$190 (Business).
State e-filing for desktop versions usually incurs an additional fee per state, often around $20-$25. The initial desktop purchase usually includes a "state download" but not the e-filing itself.
Step 3: Beware of Additional Fees and Upsells
TurboTax, like many software companies, has some optional add-ons that can increase your final bill. Be aware of these as you navigate the filing process:
Sub-heading: A. State Filing Fees
As mentioned, this is almost always an extra charge for online products, even if your federal return is free. The cost typically ranges from $39-$69 per state per return. For desktop software, the state program might be included, but e-filing it often costs extra.
Sub-heading: B. Refund Processing Service Fee
If you choose to pay your TurboTax fees directly from your federal tax refund, TurboTax will charge an additional processing fee, often around $40. It's usually cheaper to pay upfront with a debit or credit card if you can.
QuickTip: Look for lists — they simplify complex points.
Sub-heading: C. Audit Support and Audit Defense
While TurboTax often includes basic audit guidance (assistance with understanding IRS letters, etc.) with its paid products, more comprehensive Audit Defense (where a tax professional represents you) is usually an optional paid add-on. This can cost an extra $40-$60.
Sub-heading: D. Live Tax Advice / Expert Review (if not using Live Assisted/Full Service)
Sometimes, even within the DIY versions, you might be offered the chance to connect with a tax expert for specific questions. These "live advice" sessions or expert reviews, if not part of a Live Assisted package, will incur additional charges.
Step 4: Monitor Your Price as You Go
One of the great features of TurboTax (and most online tax software) is that it generally doesn't make you pay until you're ready to file. As you enter your information, TurboTax will often suggest upgrades if your tax situation becomes more complex than what your current version covers.
Keep an eye on the displayed price: The platform usually shows your running total for federal and state filing as you progress through the interview. This allows you to see how different inputs affect your cost.
Don't be afraid to downgrade: If you realize you've accidentally selected a feature that puts you in a higher tier but you don't actually need it, you can often go back and adjust your answers to try and qualify for a less expensive version.
Step 5: Look for Discounts and Special Offers
Early bird specials: TurboTax often offers lower prices earlier in the tax season. Filing earlier can sometimes save you money.
Bank/Financial Institution partnerships: Some banks or credit unions might offer discounts or even free filing for their customers through partnerships with TurboTax. Check with your financial institution.
Military discounts: Active duty and reserve military members may qualify for free federal and state filing with certain TurboTax Online products.
IRS Free File Program: While Intuit (the maker of TurboTax) no longer participates directly in the IRS Free File program for all income levels, you might still find an Intuit-branded "Free File" option if your AGI (Adjusted Gross Income) is below a certain threshold (often around $45,000, but check the IRS Free File website for current limits). This is a separate portal from the main TurboTax website and is for simpler returns.
Step 6: Consider Alternatives (If Cost is a Major Factor)
If TurboTax's pricing doesn't align with your budget, remember there are other options available:
IRS Free File Fillable Forms: For those comfortable with tax forms, this offers free federal e-filing directly through the IRS website. No guidance, just forms.
Other Tax Software: Competitors like H&R Block, TaxAct, TaxSlayer, and FreeTaxUSA often have different pricing structures and may be more affordable for certain situations.
Local Tax Assistance: Programs like VITA (Volunteer Income Tax Assistance) and TCE (Tax Counseling for the Elderly) offer free tax preparation for qualifying individuals (low to moderate income, elderly, or disabled).
By following these steps, you'll be well-equipped to determine how much you'll have to pay for TurboTax and ensure you're getting the best value for your specific tax needs.
10 Related FAQ Questions
Here are 10 frequently asked questions about TurboTax pricing, with quick answers:
Tip: Don’t rush — enjoy the read.
How to know if I qualify for TurboTax Free Edition?
You typically qualify if you have a simple tax return with only W-2 income, take the standard deduction, and claim common credits like the EITC or Child Tax Credit. Any complexities like itemizing, self-employment, or investment income usually require a paid version.
How to avoid paying for state filing with TurboTax?
For most online TurboTax products, state filing is an additional fee. The Free Edition might include free state filing for very simple returns, but it's not guaranteed for all users or situations. Your best bet for truly free state filing often involves the IRS Free File program (if you qualify and use a participating provider) or direct state tax portals.
How to get a discount on TurboTax?
Look for early bird specials at the start of tax season, check if your bank or credit union offers partnerships, or see if you qualify for military discounts.
How to switch TurboTax versions if I realize I need a different one?
TurboTax usually allows you to upgrade or downgrade your product as you go, before you pay and file. The software will often suggest an upgrade if you enter information that requires a more advanced version.
How to pay for TurboTax if I don't want to use my refund?
You can typically pay for TurboTax with a debit card, credit card, or sometimes directly from your bank account. This avoids the extra "Refund Processing Service" fee.
Tip: Absorb, don’t just glance.
How to use TurboTax if I have self-employment income (1099-NEC)?
You will almost certainly need the TurboTax Self-Employed online edition or the Home & Business desktop software to accurately report and maximize deductions for your self-employment income.
How to determine if TurboTax Live Assisted is worth the extra cost?
It's worth it if you prefer to do most of the work yourself but want the peace of mind of having a tax expert review your return and answer questions, especially for moderately complex situations.
How to file business taxes (e.g., multi-member LLC, S-Corp) with TurboTax?
You'll need the TurboTax Business Desktop Software, which is separate from the personal online or desktop versions and is designed specifically for partnership, corporate, and trust returns.
How to get help if I get audited after filing with TurboTax?
TurboTax generally offers basic audit guidance with its paid products. For more in-depth representation, you'll likely need to purchase Audit Defense as an add-on, or seek assistance from a separate tax professional.
How to know the final price before I commit to filing?
TurboTax will display your total federal and state fees before you finalize the filing process and enter your payment information. You won't be charged until you click to file.
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