You're ready to tackle your taxes, and TurboTax is on your radar – smart move! Knowing what you might have paid for it in 2023 is a great starting point for understanding your tax prep options. Let's dive deep into the world of TurboTax pricing for the 2023 tax year (which you filed in 2024), so you can be fully informed.
Understanding TurboTax Pricing: It's Not One-Size-Fits-All!
Before we get into the nitty-gritty, it's crucial to understand that TurboTax offers several different versions, each designed for varying tax situations. This means the price you paid (or would have paid) in 2023 depended heavily on the complexity of your tax return and the level of assistance you desired. Think of it like this: you wouldn't pay the same price for a basic car service as you would for a full engine overhaul, right? Taxes are similar!
Let's break down the typical TurboTax offerings and their general price ranges for the 2023 tax year. Keep in mind that these are approximate prices and can fluctuate based on promotions, where you purchase the software (direct from TurboTax, Amazon, Best Buy, etc.), and even the time of year you buy it. Early bird discounts are often available!
Step 1: Identify Your Tax Situation – Engage with Your Financial Reality!
Before we even look at specific prices, let's figure out which TurboTax product likely applied to your tax situation in 2023. Take a moment to consider:
Did you have a simple W-2 income?
Did you own a home or make significant charitable donations?
Were you an investor with stocks, bonds, or rental properties?
Did you work as a freelancer, independent contractor, or small business owner?
Did you need live help from a tax expert?
Your answers will guide you to the right TurboTax edition and, consequently, the price you would have encountered.
Step 2: Decoding TurboTax Editions and Their 2023 Price Ranges
TurboTax generally offers a tiered structure, from basic DIY filing to full-service expert assistance. Here's a look at the typical offerings and their approximate 2023 federal filing prices, plus information on state filing fees.
Sub-heading: TurboTax Free Edition (Federal & State: $0)
Who it's for: This edition is designed for very simple tax returns. If you only had W-2 income, took the standard deduction, and perhaps claimed the Child Tax Credit or Earned Income Tax Credit, this was likely your option.
What it covers in 2023: Simple Form 1040 returns. It does not support additional schedules beyond those needed for the EITC, Child Tax Credit, and student loan interest.
Key takeaway: If your tax situation was straightforward, you could have filed for free with TurboTax. However, many users found themselves needing to upgrade due to even slightly more complex situations.
Sub-heading: TurboTax Deluxe (Federal: ~$60-$89; State: Additional Fee)
Who it's for: This is a popular choice for homeowners, those with charitable contributions, and individuals who need to itemize deductions.
What it covers in 2023: All features of the Free Edition, plus the ability to:
Maximize tax deductions and credits.
Deduct home mortgage interest and property taxes.
Deduct charitable contributions.
Import financial data from participating institutions.
Approximate 2023 Federal Price: Online versions typically started around $60-$89. Downloadable software versions could be found for similar prices, sometimes with federal and one state included as a bundle.
State Filing: State e-filing typically incurred an additional fee, often in the range of $40-$60 per state.
Sub-heading: TurboTax Premier (Federal: ~$90-$119; State: Additional Fee)
Who it's for: Ideal for individuals with investments (stocks, bonds, mutual funds, cryptocurrency) and rental property income.
What it covers in 2023: All Deluxe features, plus:
Guidance for reporting sales of stocks, bonds, and mutual funds.
Assistance with calculating capital gains and losses.
Support for rental property income and deductions (Schedule E).
Help with employee stock plans.
Approximate 2023 Federal Price: Online versions were generally in the $90-$119 range. Downloadable software often bundled federal and one state for a slightly higher price.
State Filing: Similar to Deluxe, state e-filing was an additional cost, usually in the $40-$60 per state range.
Sub-heading: TurboTax Self-Employed (Federal: ~$120-$179; State: Additional Fee)
Who it's for: Designed for freelancers, independent contractors, small business owners, and those with 1099 income. Essentially, anyone with self-employment income and associated expenses.
What it covers in 2023: All Premier features, plus:
Guidance for reporting self-employment income and expenses (Schedule C).
Support for deducting business expenses like home office, vehicle mileage, and supplies.
Help with ride-share and food delivery income.
Maximizing industry-specific deductions.
Approximate 2023 Federal Price: Online versions ranged from about $120-$179. Downloadable software (often called Home & Business) was typically in a similar ballpark.
State Filing: Expect an additional fee for state e-filing, typically $40-$60 per state.
Sub-heading: TurboTax Live Assisted and Full Service (Prices Varied Significantly)
Who it's for: For those who want expert assistance. Live Assisted provides on-demand help and a final review, while Full Service means a tax expert does your taxes for you from start to finish.
What it covers in 2023: These options built upon the features of the underlying editions (Basic, Deluxe, Premier, Self-Employed) but added the crucial element of human expert interaction.
Approximate 2023 Prices: These were considerably higher than the DIY options. Prices for Live Assisted could start from around $80-$100 for Basic federal and go up significantly, potentially reaching $200-$300+ for Self-Employed with live assistance and state filing. Full Service options were the most expensive, easily exceeding $300-$500+ depending on complexity and location. These prices were highly variable and dependent on the specific service level and the complexity of your return.
Step 3: Factor in Additional Costs
Beyond the core software or online service price, there are a few other potential costs you might have encountered in 2023:
State Filing Fees: As mentioned, state e-filing was almost always an additional fee unless explicitly bundled with a desktop software purchase. This was generally $40-$60 per state.
Refund Processing Service: If you chose to have your TurboTax fees deducted from your federal tax refund, TurboTax charged an additional processing fee, typically around $40.
Audit Defense: TurboTax often offered an optional add-on for audit defense, which provides assistance if your return is audited by the IRS. This was an additional cost, usually around $40-$60.
Live Expert Add-ons (for Desktop Users): If you purchased desktop software and later decided you needed expert help, you could typically purchase live tax advice as an add-on, which would incur an additional fee.
Step 4: Consider Where You Purchased TurboTax
The price of TurboTax in 2023 could also vary based on where you bought it.
Direct from TurboTax Website: Often had various promotions throughout the tax season, with prices typically aligning with the ranges mentioned above.
Retailers (Amazon, Best Buy, Walmart, etc.): Often offered desktop versions of TurboTax at competitive prices, sometimes with bundles that included federal and state filing. These prices could sometimes be lower than direct online purchases, especially during sales events.
Third-Party Resellers: Be cautious here, but sometimes you could find legitimate copies at discounted rates, though it's always best to buy from official or reputable sources to ensure authenticity and support.
Step 5: The "Free" Controversy and What it Meant for 2023
It's worth noting the ongoing discussion around TurboTax's "free" offerings. In 2021, Intuit (the maker of TurboTax) ceased participation in the IRS Free File program. This program allowed eligible taxpayers to file their federal taxes for free using commercial software.
For 2023, this meant that while TurboTax still offered its own "Free Edition," it was only for very simple Form 1040 returns with limited credits. If your tax situation was even slightly more complex, you would have been prompted to upgrade to a paid version. This led to some users initially expecting to file for free but then facing unexpected costs. It's an important consideration when evaluating past and future TurboTax costs.
In Summary for 2023:
To give you a very quick overview of TurboTax's general pricing in 2023 for federal filing:
Free Edition: $0 (for very simple returns)
Deluxe: ~$60 - $89
Premier: ~$90 - $119
Self-Employed (Home & Business): ~$120 - $179
Live Assisted/Full Service: Significantly higher, varying widely based on complexity and service level.
State filing was almost always an additional fee of ~$40-$60 per state.
10 Related FAQ Questions (How to)
Here are 10 frequently asked questions, all starting with "How to," with quick answers, to further assist you:
How to determine which TurboTax product I needed in 2023?
Quick Answer: Evaluate your income sources (W-2, 1099, investments, rental), deductions (standard vs. itemized), and the complexity of your financial situation. TurboTax itself has a questionnaire to guide you to the right product.
How to avoid paying for TurboTax in 2023 if my return was simple?
Quick Answer: If you had only W-2 income and took the standard deduction, you likely qualified for TurboTax's Free Edition. Be mindful that even slight complexities (like certain credits or deductions) could trigger an upgrade.
How to get the best deal on TurboTax in 2023?
Quick Answer: Look for early bird discounts, check prices at various retailers (Amazon, Best Buy, Walmart), and compare online vs. desktop software options. Promotions typically run from December through February.
How to tell if TurboTax will charge me for state filing?
Quick Answer: Unless you specifically purchased a desktop software bundle that explicitly stated "Federal + State," assume state e-filing will be an additional fee, typically displayed before you finalize your purchase.
How to know if I qualify for TurboTax Free Edition?
Quick Answer: You qualified if you had a simple Form 1040 return with only W-2 income, took the standard deduction, and only claimed the Earned Income Tax Credit, Child Tax Credit, or student loan interest deduction.
How to pay for TurboTax without deducting from my refund?
Quick Answer: You could pay for TurboTax directly with a credit card at the time of filing, which avoids the additional "refund processing service" fee.
How to get live help with TurboTax if I'm using the desktop version?
Quick Answer: For desktop versions, you could typically purchase an "expert help" add-on directly within the software or through the TurboTax website to connect with a tax expert.
How to ensure I'm getting all possible deductions with TurboTax?
Quick Answer: TurboTax is designed to ask questions that help you identify deductions. For more complex situations or extra peace of mind, consider TurboTax Deluxe or Premier, or a Live Assisted/Full Service option.
How to switch TurboTax editions if I realize I need a more advanced one?
Quick Answer: TurboTax often allows you to upgrade your edition seamlessly within the online platform or desktop software if your tax situation proves more complex than initially thought. Your entered data usually transfers.
How to get a refund if I purchased the wrong TurboTax product in 2023?
Quick Answer: TurboTax (Intuit) generally has a satisfaction guarantee. You would typically need to contact their customer support within a specified timeframe to discuss a refund or exchange.
