Let's talk taxes! Specifically, let's break down the often-asked question: "How much does it cost for TurboTax?" If you're anything like me, you want to get your taxes done right, maximize your refund, and ideally, not break the bank doing it. TurboTax is a hugely popular option, but its pricing structure can sometimes feel like a maze. Fear not! This comprehensive guide will walk you through everything you need to know about TurboTax costs, so you can choose the right plan for your unique financial situation.
Understanding TurboTax Pricing: It's Not a One-Size-Fits-All Answer
The cost of TurboTax isn't a fixed number. It varies significantly based on several factors, including:
The complexity of your tax situation: Simple W-2 income? Or are you a freelancer with investment income and rental properties?
The specific TurboTax product you choose: Online editions, desktop software, or services with live expert help all have different price points.
Whether you need to file a state return: State filing is almost always an additional cost.
Optional add-ons: Audit defense, live expert review, or paying fees out of your refund can increase the final price.
Time of year: Prices can fluctuate, often increasing closer to the tax deadline.
Ready to demystify those tax dollars? Let's dive in!
Step 1: Identify Your Tax Complexity - Where Do You Fit In?
Before you even look at a price tag, the most crucial step is to understand your own tax situation. This will largely dictate which TurboTax version you'll need.
Sub-heading: Are You a "Simple Filer"?
A "simple tax return" generally means:
You only have W-2 income.
You're taking the standard deduction.
You might claim common credits like the Earned Income Tax Credit (EITC) or the Child Tax Credit.
You have student loan interest deductions.
If this describes you, you might be eligible for TurboTax's Free Edition!
Sub-heading: Stepping Up - Homeowners, Deductions, and Basic Investments
You'll likely need a paid version if your tax situation includes:
Itemizing deductions (e.g., mortgage interest, property taxes, charitable contributions).
Having investment income (e.g., stocks, bonds, mutual funds) reported on Schedule D or K-1.
Rental property income (Schedule E).
Health Savings Account (HSA) contributions.
Sub-heading: The Self-Employed, Freelancers, and Small Business Owners
This is where things get more complex and, typically, more expensive. You'll definitely need a higher-tier product if you have:
Income from self-employment, freelancing, or gig work (1099-NEC income).
Business expenses (Schedule C).
Home office deductions.
Significant mileage or vehicle deductions for business.
Step 2: Choose Your TurboTax Product Line - Online, Desktop, or Live?
TurboTax offers different ways to prepare and file your taxes, each with its own pricing model.
Sub-heading: TurboTax Online Editions (DIY)
These are web-based versions you access directly through your browser. You handle the input, and TurboTax guides you.
TurboTax Free Edition:
Federal Cost: $0
State Cost: $0 (typically includes one free state return)
Best for: Simple tax returns only (Form 1040, W-2 income, standard deduction, limited credits like EITC and Child Tax Credit, student loan interest).
Limitations: You cannot itemize deductions or file most schedules (like Schedule A, C, D, or E) with the Free Edition. If you try to enter information that requires a paid version, you'll be prompted to upgrade.
TurboTax Deluxe Online:
Federal Cost: Around $60 - $89 (prices can fluctuate)
State Cost: Around $20 - $64 per state (online editions typically charge per state)
Best for: Homeowners, those who itemize deductions, and filers with more complex W-2 income situations. This is generally suitable for the "average" taxpayer looking to maximize deductions.
TurboTax Premier Online:
Federal Cost: Around $89 - $149
State Cost: Around $20 - $64 per state
Best for: Investors (stocks, bonds, crypto, mutual funds), and rental property owners. It handles Schedule D (capital gains/losses) and Schedule E (rental income).
TurboTax Self-Employed Online:
Federal Cost: Around $119 - $149 (or higher with Live Assisted Premium)
State Cost: Around $20 - $64 per state
Best for: Freelancers, independent contractors, gig workers (Uber, Lyft, DoorDash), and small business owners who file a Schedule C. It helps you find industry-specific deductions.
Sub-heading: TurboTax Desktop Software (CD/Download)
These are software versions you install directly onto your computer. They offer some advantages, like potentially filing multiple federal returns (up to 5) and one state download included with certain versions.
TurboTax Deluxe Desktop:
Federal Cost: Around $70 - $90
State Cost: Usually includes one state program download for free; additional state e-filing typically costs around $25 per state (you can print and mail for free).
Best for: Similar to Deluxe Online, but ideal if you prefer to work offline, want to prepare multiple federal returns, or prefer owning the software.
TurboTax Premier Desktop:
Federal Cost: Around $100 - $120
State Cost: Usually includes one state program download for free; additional state e-filing typically costs around $25 per state.
Best for: Investors and rental property owners, similar to Premier Online, with the benefits of desktop software.
TurboTax Home & Business Desktop:
Federal Cost: Around $110 - $130
State Cost: Usually includes one state program download for free; additional state e-filing typically costs around $25 per state.
Best for: Self-employed individuals and small business owners who need to file Schedule C, with the benefits of desktop software.
TurboTax Business Desktop (for S-Corps, C-Corps, Partnerships):
Federal Cost: Around $130 - $150
State Cost: Varies, can be $0 to $45 per state.
Best for: Businesses filing Forms 1120, 1120S, or 1065. This is distinct from the Home & Business version for Schedule C filers.
Sub-heading: TurboTax Live & Full Service - Expert Assistance
If you want professional help, TurboTax offers options to connect with a tax expert.
TurboTax Live Assisted:
Federal Cost: Starting around $89 - $219 (depending on the underlying product - Deluxe, Premier, Self-Employed)
State Cost: Around $59 - $69 per state
What you get: This service provides on-demand access to a tax expert (Enrolled Agent or CPA) who can answer your questions, offer guidance, and review your return before you file. You still do the data entry.
TurboTax Live Full Service:
Federal Cost: Starting around $129 - $219 (and can increase with complexity)
State Cost: Additional per state
What you get: A tax expert prepares, reviews, and files your taxes for you from start to finish. You simply upload your documents. This is the most expensive option but offers the highest level of assistance.
Step 3: Factor in State Filing Fees - The Often Overlooked Cost
As you've seen, state filing is almost always an additional cost with TurboTax online editions.
Online Editions: Expect to pay anywhere from $20 to $64 per state you need to file in. The exact price can depend on the specific online version you're using.
Desktop Editions: While many desktop versions include one free state program download, e-filing that state return often incurs a separate fee of around $25. You can usually avoid this fee by printing and mailing your state return.
Be sure to account for this if you live in a state with income tax!
Step 4: Consider Optional Add-Ons and Hidden Fees
TurboTax offers several optional services that can increase your total cost.
Audit Defense:
Cost: Typically around $40 - $60.
What it is: This service provides assistance if you get audited by the IRS. While TurboTax generally offers free audit guidance, Audit Defense provides more comprehensive support, sometimes including representation. It's important to note that actual IRS audits are rare, especially for simple returns.
Refund Processing (Pay with Federal Refund):
Cost: Approximately $40 - $45.
What it is: This allows you to pay your TurboTax fees directly from your federal tax refund, so you don't have to pay upfront with a credit card. While convenient, it's essentially a processing fee for this service.
Early Refund Advance:
Cost: Generally $0 in loan fees, but specific terms apply.
What it is: A short-term loan against your expected refund, offered by a third-party bank. You might get funds in as little as 60 seconds after IRS acceptance. Read the terms carefully as eligibility and amounts vary.
Live Expert Chat/Phone Support:
Cost: Included with Live Assisted and Full Service options. For DIY online users, basic support is often free, but more in-depth or personalized assistance might require upgrading to a Live plan or incurring a fee.
Step 5: Look for Discounts and Promotions
TurboTax, like many tax software providers, often has promotions and discounts, especially earlier in the tax season.
Early Bird Deals: Prices are often lower in January and February and tend to increase as the April tax deadline approaches.
Retailers: Sometimes, you can find boxed versions or download codes for TurboTax desktop software at a discount from major retailers like Amazon, Walmart, or Best Buy.
Bundle Deals: Occasionally, there are bundles that include both federal and state filing at a slightly reduced rate.
Always check the official TurboTax website and reputable retailers for the latest pricing and deals before you buy!
Finalizing Your Decision: Weighing Cost vs. Features
Ultimately, the "cost" of TurboTax is what you're willing to pay for convenience, accuracy, and the level of support you need.
If your taxes are truly simple: Start with the Free Edition. If it prompts you to upgrade, then consider the Deluxe version.
If you're a homeowner or have investments: Deluxe or Premier will likely be your best fit.
If you're self-employed: The Self-Employed version is a necessity to ensure you claim all eligible deductions.
If you want peace of mind and expert help: TurboTax Live Assisted offers a balance of DIY and professional review, while Full Service handles everything for you (at a higher price).
Don't pay for features you don't need, but also don't underspend if it means missing out on crucial deductions or risking errors.
10 Related FAQ Questions
Here are some common questions about TurboTax costs, with quick answers:
How to determine if I qualify for TurboTax Free Edition?
You qualify for TurboTax Free Edition if you have a simple tax return, typically with W-2 income, take the standard deduction, and claim common credits like the Child Tax Credit or EITC. It does not support itemized deductions or most schedules.
How to find the exact current pricing for TurboTax editions?
The most accurate and up-to-date pricing for TurboTax editions can always be found on the official TurboTax website (
How to avoid state filing fees with TurboTax?
For online editions, state filing fees are generally unavoidable unless you qualify for the free edition (which typically includes one free state). For desktop editions, you can avoid the e-file fee by printing your state return and mailing it in.
How to pay for TurboTax without a credit card?
You can opt to have your TurboTax fees deducted directly from your federal tax refund. Be aware that this service usually incurs an additional processing fee (e.g., $40-$45).
How to know if I need TurboTax Premier or Self-Employed?
You need TurboTax Premier if you have investment income (stocks, crypto, mutual funds) or rental property income. You need TurboTax Self-Employed if you have freelance, gig work, or small business income reported on a Schedule C.
How to get live expert help with TurboTax and what does it cost?
You can get live expert help by choosing a TurboTax Live Assisted or TurboTax Live Full Service product. Live Assisted costs start around $89-$219 (federal), plus state fees, while Full Service starts around $129-$219 (federal) and increases with complexity.
How to tell if TurboTax Desktop or Online is cheaper for me?
If you only need to file one federal and one state return, online and desktop pricing can be similar. However, if you need to file multiple federal returns, or prefer owning the software, desktop versions might offer better value as they often include one free state program and allow up to 5 federal e-files.
How to get a discount on TurboTax?
Look for "early bird" discounts at the beginning of the tax season (January/February), check major retailers for deals on desktop software, and sometimes bundle deals are offered. Prices usually increase closer to the tax deadline.
How to understand TurboTax's Audit Defense and if it's worth the cost?
Audit Defense is an optional add-on (around $40-$60) that provides more comprehensive assistance in case of an IRS audit, potentially including representation. While TurboTax offers free audit guidance, actual IRS audits are rare, making Audit Defense a personal choice based on your comfort level and tax complexity.
How to upgrade my TurboTax version if my tax situation changes?
If you start with a lower-tier TurboTax product and enter information that requires a more advanced version (e.g., self-employment income on the Free Edition), TurboTax will automatically prompt you to upgrade and pay the difference to the appropriate version.
