The question of "how much to e-file with TurboTax" is a common one, and the answer, like many things tax-related, isn't a single, straightforward number. It depends heavily on your individual tax situation and the level of service you choose. TurboTax offers a range of products, from free options for simple returns to premium tiers with expert assistance, each with its own pricing structure.
Are you ready to unravel the mystery of TurboTax e-filing costs and find the best fit for your tax needs? Let's dive in!
Step 1: Understand Your Tax Complexity
Before you even think about pricing, the first and most crucial step is to understand the complexity of your tax situation. This is the primary driver of how much you'll pay with TurboTax.
Sub-heading: What Makes a Tax Return "Simple" or "Complex"?
Simple Returns: Generally, a simple return involves W-2 income (from a job), taking the standard deduction, and potentially claiming credits like the Child Tax Credit or Earned Income Tax Credit. If you have no dependents, no investments, no self-employment income, and no itemized deductions, you're likely in the "simple" category.
More Complex Returns: Your tax situation becomes more complex (and thus potentially more expensive with TurboTax) if you have:
Itemized deductions (e.g., mortgage interest, charitable contributions, medical expenses).
Investment income (stocks, bonds, mutual funds, cryptocurrency, etc., requiring Schedule D).
Rental property income and expenses (requiring Schedule E).
Self-employment income (freelancers, independent contractors, gig workers, small business owners, requiring Schedule C).
Multiple state filings (living in one state, working in another).
Foreign income.
Certain tax credits beyond basic ones.
Step 2: Explore TurboTax Product Tiers
TurboTax offers several product tiers, each designed for different tax situations and offering varying levels of support. The cost of e-filing is tied directly to the product you select. Prices are subject to change and can vary throughout the tax season, with early filers sometimes getting better rates.
Sub-heading: TurboTax Online Editions
These are the most common choices for individual filers. Prices listed below are approximate for the 2024 tax year (filing in 2025) and are for federal filing; state filing is almost always an additional cost.
TurboTax Free Edition:
Cost: $0 Federal, $0 State (for qualifying users).
Who it's for: Individuals with very simple tax returns (W-2 income, standard deduction, limited interest/dividend income, Child Tax Credit, Earned Income Tax Credit, student loan interest deduction). Approximately 37% of taxpayers qualify.
Key Features: Easy step-by-step guidance, federal e-file included, mobile app filing.
TurboTax Deluxe:
Cost: Approximately $89 Federal, plus $64-$69 per state.
Who it's for: Homeowners, those with significant charitable donations, medical expenses, or other itemized deductions. It helps maximize various deductions and credits.
Key Features: Searches 350+ deductions and credits, helps with mortgage and property tax deductions, optimizes charitable contributions.
TurboTax Premium (formerly Premier):
Cost: Approximately $149 Federal, plus $64-$69 per state.
Who it's for: Investors (stocks, bonds, crypto), those with rental property income, and some self-employed individuals (though Self-Employed is often better for dedicated business income).
Key Features: All Deluxe features, plus guidance for investments (Schedule D) and rental property income (Schedule E).
TurboTax Self-Employed:
Cost: Approximately $219 Federal, plus $64-$69 per state.
Who it's for: Freelancers, independent contractors, gig workers, and small business owners with Schedule C income and expenses.
Key Features: All Premium features, plus specific guidance for self-employment income and expenses, industry-specific deductions, and assists with calculating estimated taxes.
Sub-heading: TurboTax Live and Full Service Options
These options provide varying levels of access to tax experts. They are generally more expensive but offer added peace of mind.
TurboTax Live Assisted:
Cost: Higher than DIY editions, ranging from approximately $79 (Basic) to $209 (Premium) Federal, plus $59-$69 per state.
Who it's for: Those who want an expert to review their return before filing, or who need unlimited tax advice as they go.
Key Features: Access to a live tax expert via chat or video, screen share capabilities, and a final review of your return by an expert.
TurboTax Live Full Service:
Cost: The most expensive option, starting around $129 (Basic) to $349 (Self-Employed) Federal, plus $69 per state.
Who it's for: Individuals who prefer to have a tax expert do their taxes for them.
Key Features: You upload your documents, and a dedicated tax expert prepares, signs, and files your return for you. Includes audit support.
Sub-heading: TurboTax Desktop Software
For those who prefer to install software on their computer and work offline, TurboTax offers desktop versions. These typically allow for 5 federal e-files and printing of unlimited state returns for one state (though state e-filing often costs extra).
TurboTax Basic (Desktop): Similar to the Free Edition online, for simple returns.
TurboTax Deluxe (Desktop): Similar to the Deluxe online, for itemized deductions.
TurboTax Premier (Desktop): Similar to the Premium online, for investments and rental property.
TurboTax Home & Business (Desktop): Comparable to the Self-Employed online, for personal and small business taxes.
Costs: Desktop versions are typically a one-time purchase, ranging from approximately $50 for Basic to $130 for Home & Business. State e-file fees for desktop versions can be around $20-$25 per state.
Step 3: Consider Additional Fees and Services
Beyond the core product price, there are other potential costs to be aware of:
State Filing Fees: As mentioned, state returns are almost always an additional cost, whether you use online or desktop software. These can range from $0 (for the Free Edition) to around $69 per state for paid versions.
Audit Defense/Assistance: TurboTax often offers add-on services like Audit Defense or Audit Support. These provide help if your return is audited by the IRS. The cost for these can range from $40 to $60 or more.
Refund Processing Service Fee: If you choose to have your TurboTax fees deducted from your federal or state tax refund (instead of paying upfront with a credit card), there's typically an additional "Refund Processing Service" fee, often around $40.
Live Expert Add-ons (for DIY users): Even if you start with a DIY online product, you might be offered the option to add a "Live Expert" review or advice for a fee as you go along.
Prior Year Taxes: If you need to file past tax returns, there will be separate fees for each prior year's software or online access.
Step 4: Find Ways to Potentially Reduce Your Cost
While TurboTax can be expensive, there are ways to potentially reduce your out-of-pocket costs:
Qualify for Free Edition: The most obvious way to save money! If your tax situation truly is simple, utilize the TurboTax Free Edition. Make sure you don't accidentally upgrade to a paid version by entering information that triggers a need for more complex forms.
IRS Free File Program: If your Adjusted Gross Income (AGI) is below a certain threshold (typically around $79,000 for Tax Year 2024), you might qualify for the IRS Free File Program, which partners with several tax software companies, including a limited version of TurboTax, to offer free federal and sometimes state filing. You must go through the IRS Free File website to access this, not directly to TurboTax.
Military Discount: Active-duty military members and reservists often qualify for free federal and state filing with TurboTax, regardless of the complexity of their return.
Employer or Financial Institution Offers: Check if your employer, bank, credit union, or other financial institution offers any discounts or free access to TurboTax products.
Early Bird Discounts: TurboTax, like many tax software providers, often offers promotional pricing at the beginning of the tax season. Filing earlier can sometimes save you money.
Use the Mobile App for Free Filing (Limited Time): Occasionally, TurboTax may offer promotions for free federal and state filing for all filers (regardless of complexity) if they use the mobile app and didn't use TurboTax for the prior tax year. Keep an eye out for such offers.
Step 5: Review and E-file
Once you've entered all your information and selected your product, TurboTax will calculate your refund or amount due. Before you hit that "e-file" button, take your time and review everything carefully.
Sub-heading: The E-file Process
Review Your Return: TurboTax performs thousands of error checks. Pay attention to any flags or suggestions it provides. Ensure all your income, deductions, and credits are accurately entered.
Choose Your Payment Method: If you're using a paid version, you'll be prompted to pay. You can typically pay with a credit card or choose to have the fees deducted from your federal or state refund (which incurs the extra processing fee).
Electronic Signature: To e-file, you'll need to provide an electronic signature. This usually involves entering your Adjusted Gross Income (AGI) from your prior year's tax return or using a self-selected PIN.
Confirm and Transmit: Double-check everything one last time, then confirm and transmit your return to the IRS and relevant state tax authorities.
Confirmation Emails: You'll receive email confirmations from TurboTax, and then separate emails from the IRS (and state, if applicable) once your return has been accepted. Keep these emails for your records!
Step 6: Understand the "Pay When You File" Model
TurboTax Online products generally operate on a "pay when you file" model. This means you can start your tax return, enter all your information, and even navigate through different product tiers without paying anything upfront. You only pay when you are ready to:
E-file your federal and/or state return.
Print your return for mailing.
Purchase additional services like Audit Defense.
This allows you to explore the software and see which tier your tax situation naturally falls into before committing financially.
10 Related FAQ Questions
How to determine which TurboTax product is right for me?
The best way to determine the right product is to start with the Free Edition online and begin entering your information. TurboTax will guide you and suggest an upgrade if your tax situation requires forms or features not covered by the lower-tier product.
How to avoid unexpected fees when e-filing with TurboTax?
To avoid unexpected fees, be clear about your tax situation from the start, choose the appropriate product, and read all disclosures before adding services or finalizing payment. Be wary of entering information that might automatically upgrade you if you're trying to stay within a lower-cost tier.
How to get a free federal and state e-file with TurboTax?
You can get a free federal and state e-file with TurboTax if you qualify for the TurboTax Free Edition (simple 1040 returns) or if you meet the income requirements for the IRS Free File Program and access TurboTax through the IRS Free File website. Active-duty military also qualify for free federal and state filing.
How to access the IRS Free File Program through TurboTax?
You must go to the official IRS Free File website (irs.gov/freefile) and then click on the link for TurboTax from there. If you go directly to the TurboTax website, you will likely not be able to access the specific Free File version.
How to pay for TurboTax without deducting from my refund?
When you're ready to file, TurboTax will give you payment options. You can simply choose to pay the listed fee using a credit card instead of opting for the "deduct from refund" service.
How to get a discount on TurboTax?
Look for early bird discounts at the beginning of tax season, check if you qualify for military discounts, or see if your employer or financial institution offers any special promotions for TurboTax users.
How to switch TurboTax products if I realize I need a different one?
With TurboTax Online, you typically don't "switch" products in the traditional sense. As you enter information, if your tax situation requires a higher-tier product, TurboTax will automatically prompt you to upgrade. You'll only pay for the higher tier when you file.
How to confirm my e-file was accepted by the IRS?
After you e-file, TurboTax will send you an email confirmation indicating that your return was transmitted. Within 24-48 hours, you should receive a second email from TurboTax notifying you whether the IRS (and state, if applicable) has accepted or rejected your return. You can also check the status directly on the TurboTax website.
How to file multiple state returns with TurboTax?
For online versions, each state return typically incurs a separate fee beyond the federal cost. For desktop versions, you usually get one state included, and additional states for e-file cost extra per state. TurboTax will guide you through adding and preparing returns for all necessary states.
How to get help from a live tax expert if I'm using a DIY TurboTax product?
If you're using a DIY TurboTax product (Free, Deluxe, Premium, Self-Employed online) and realize you need expert help, you can usually upgrade to a "Live Assisted" version within the software. This will change your product and increase your cost, but it will give you access to a tax expert.
