Filing taxes can often feel like a daunting task, and one of the first questions that comes to mind for many is: how much will this cost me? If you're considering TurboTax, a popular tax preparation software, you're in the right place. This comprehensive guide will break down the costs associated with filing taxes on TurboTax, step by step, for the 2024 tax year (filed in 2025).
Ready to unravel the mystery of TurboTax pricing? Let's dive in!
Understanding TurboTax Pricing: It's Not One-Size-Fits-All
The cost of filing your taxes with TurboTax isn't a fixed price. It varies significantly based on several factors, primarily the complexity of your tax situation and the level of assistance you require. TurboTax offers various online editions and desktop software, each with different features and price points. Additionally, state filing often incurs separate charges.
Here's a breakdown to help you understand what you might pay:
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| How Much Does It Cost To File Taxes On Turbotax |
Step 1: Determine Your Tax Situation Complexity
This is the most crucial step in understanding your potential TurboTax costs. TurboTax categorizes tax situations into different levels of complexity, and each level typically corresponds to a different product tier.
Sub-heading: Simple Tax Returns (Often Free)
Are you one of the lucky ones with a straightforward tax situation? Many people qualify for TurboTax's Free Edition.
Who qualifies? Generally, if you have a simple tax return, meaning you only need to file a Form 1040 with:
W-2 income (from an employer)
Standard deduction
Limited interest and dividend income (Form 1099-INT/1099-DIV, as long as it doesn't require Schedule B)
Earned Income Tax Credit (EITC)
Child Tax Credit (CTC)
Student loan interest deduction
Taxable qualified retirement plan distributions
Approximately 37% of taxpayers qualify for the TurboTax Free Edition.
Cost for Federal: $0
Cost for State: $0 (in many cases, but check for your specific state, as some states may still charge an e-file fee even for simple returns).
Special Note: If you are active-duty military or in the reserves, you may also qualify for free federal and state filing regardless of complexity.
Sub-heading: Moderate Tax Returns (Deluxe Edition)
If your tax situation is a bit more involved than just a simple W-2, you'll likely need the Deluxe edition.
QuickTip: A careful read saves time later.
Who needs it? This tier is ideal for:
Homeowners (who itemize deductions, e.g., mortgage interest, property taxes)
Those with significant charitable contributions
Individuals with medical expenses
Filers with health savings account (HSA) contributions
Key Feature: The Deluxe edition helps you maximize deductions and credits by searching through over 350 possibilities. It supports Schedule A for itemized deductions.
Estimated Cost for Federal (Online): Around $89 - $139 (prices can fluctuate throughout the tax season, with earlier filing often offering lower rates).
Estimated Cost for State (Online): Around $64 - $69 per state.
Sub-heading: Complex Tax Returns (Premium/Self-Employed Edition)
For those with investments, rental properties, or self-employment income, you'll need the more robust Premium or Self-Employed editions. Note: TurboTax Online has combined Premier and Self-Employed into a single "Premium" offering for online users.
Who needs it? This tier is designed for:
Self-employed individuals, freelancers, and gig workers (those receiving 1099-NEC income)
Independent contractors
Small business owners (sole proprietors)
Investors (stocks, bonds, mutual funds, cryptocurrency)
Rental property owners (Form Schedule E)
Key Features: This version includes all Deluxe features plus specialized tools for:
Finding industry-specific deductions for self-employed individuals.
Snap and auto-fill for 1099-NEC or 1099-K forms.
Guidance on mileage and vehicle deductions, home office expenses, and startup tax deductions for new businesses.
Seamless reporting of investment income and rental property income/expenses.
Estimated Cost for Federal (Online): Around $149 - $219 (prices vary, and tend to increase closer to the tax deadline).
Estimated Cost for State (Online): Around $64 - $69 per state.
Step 2: Consider Additional TurboTax Services and Add-ons
Beyond the base product, TurboTax offers various add-on services that can increase your overall cost. It's important to understand these before you commit.
Sub-heading: TurboTax Live Assisted (Get Expert Help)
If you prefer some human guidance without handing everything over, Live Assisted might be for you.
What it offers: This service provides unlimited access to a tax expert (CPA or Enrolled Agent) for advice and answers as you prepare your return. They also perform a final review of your return before you file.
Cost (in addition to product tier):
Live Assisted Basic: Around $89 federal; $59 state (for simple returns).
Live Assisted Deluxe: Around $129 federal; $69 state.
Live Assisted Premium: Around $209 federal; $69 state.
Sub-heading: TurboTax Live Full Service (Have an Expert Do It For You)
For those who want a completely hands-off approach, TurboTax Live Full Service means an expert prepares and files your taxes for you.
What it offers: You upload your documents, and a dedicated tax expert handles everything from start to finish.
Cost (Comprehensive Service):
Starting at around $129 federal; $69 per state for simple returns.
Can go up to $349 federal; $69 per state or more for self-employed or complex situations.
Sub-heading: MAX Defend & Restore / Audit Defense
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This is an optional add-on that provides support in case you're audited by the IRS.
What it offers: If you get audited, TurboTax assigns a representative to assist with the audit process and help manage communication with the IRS.
Estimated Cost: Around $60 (can be part of a "MAX" bundle). Note that this typically does not include court representation or help with fraud-related audits.
Tip: Reread if it feels confusing.
Sub-heading: Refund Processing Service (Pay with your Refund)
TurboTax offers an option to deduct your filing fees directly from your federal or state tax refund.
What it offers: Convenience, as you don't pay upfront.
Estimated Cost: A processing fee of around $40 is typically charged for this service.
Step 3: Factor in State Filing Fees
Even if your federal return is free, state filing often comes with a separate charge on TurboTax, unless you qualify for their specific Free Edition in certain states or military programs.
General Rule: For paid federal products (Deluxe, Premium), state filing typically costs an additional $64 - $69 per state.
Free Edition: Some simple state returns may be free with the TurboTax Free Edition, but it's important to verify this for your specific state.
Step 4: Consider TurboTax Desktop Software
While the online versions are popular, TurboTax also offers desktop software, which can be purchased as a CD or digital download.
How it differs:
You own the software, so you can prepare multiple federal returns (typically up to 5 federal e-files).
It generally includes one state download. Additional states may incur further fees.
Prices are usually a one-time purchase.
Desktop Product Tiers & Estimated Costs:
Basic: Around $60 (federal only, one state download included, but e-file fees apply).
Deluxe: Around $60 - $89 (federal, one state download included).
Premier: Around $115 - $149 (federal, one state download included). Best for investors and rental property owners.
Home & Business: Around $130 - $169 (federal, one state download included). Ideal for freelancers and self-employed individuals.
State E-filing for Desktop: Typically an additional $25 - $40 per state e-filed after the included one.
Step 5: Watch Out for Promotional Pricing and Price Increases
TurboTax, like many tax software providers, often has promotional pricing early in the tax season. Prices tend to increase closer to the filing deadline (April 15th).
Tip: If you know you'll be using TurboTax, filing earlier can sometimes save you money.
Mobile App Offer: TurboTax has offered free federal and state filing for new users who file via their mobile app by a certain date (e.g., February 28th, 2025 for the 2024 tax year). Always check their official website for the latest offers.
Step 6: Review Your Fees Before Filing
TurboTax is designed to show you your fees before you finalize your return. Always double-check the breakdown of federal, state, and any add-on service charges before you hit "file." You can usually remove add-ons if you don't need them, which can reduce your final cost.
In Summary: A Range of Costs
Tip: Patience makes reading smoother.
To summarize, the cost to file taxes on TurboTax can range from $0 for very simple returns (federal and sometimes state) to over $300-$400 if you have a complex tax situation and opt for comprehensive expert assistance (like TurboTax Live Full Service) with multiple state filings. Most individuals with moderate complexity (homeowners, some deductions) can expect to pay in the range of $150 - $250 for federal and one state return.
10 Related FAQ Questions
How to reduce TurboTax filing fees?
You can reduce TurboTax filing fees by filing early to take advantage of promotional pricing, ensuring you qualify for and use the Free Edition if your tax situation is simple, declining optional add-ons like Audit Defense or "Pay with your Refund," and opting for the desktop software if you file multiple federal returns or prefer a one-time purchase model for states.
How to know if I qualify for TurboTax Free Edition?
You generally qualify for TurboTax Free Edition if you have a simple tax return with W-2 income, take the standard deduction, and have limited other income sources like interest or dividends that don't require additional schedules. It also covers common credits like the EITC and Child Tax Credit. Always check the specific eligibility criteria on the TurboTax website for the current tax year.
How to avoid state filing fees on TurboTax?
To avoid state filing fees on TurboTax, you would typically need to qualify for their Free Edition for both federal and state (which is limited to simple returns in participating states), or be eligible for a special program like active-duty military free filing. Otherwise, state filing usually incurs a separate charge with paid federal products.
How to remove TurboTax add-ons before filing?
Before you e-file your return, you can typically go back through the review or payment section of TurboTax to unselect or remove any add-on services like MAX Defend & Restore, PLUS Help & Support, or the "Pay With Your Refund" option. Look for options to "remove" or "edit" services in your payment summary.
QuickTip: Revisit this post tomorrow — it’ll feel new.
How to get expert help on TurboTax without paying for Full Service?
You can get expert help on TurboTax without paying for the full "Done for Me" service by opting for TurboTax Live Assisted. This option allows you to prepare your own taxes with the ability to connect with a tax expert for live advice and a final review before filing, at a lower cost than the full service.
How to compare TurboTax to other tax software options?
To compare TurboTax to other tax software, consider your tax situation's complexity, the features you need (e.g., investment tracking, self-employment support), the level of customer or expert support desired, and the overall cost for both federal and state filing across different platforms like H&R Block, TaxAct, or FreeTaxUSA.
How to track my TurboTax refund?
After filing your taxes with TurboTax, you can track your federal refund directly through the IRS "Where's My Refund" tool on their website (IRS.gov). For state refunds, check your respective state's department of revenue website. TurboTax also provides updates on your filing status within its platform.
How to pay TurboTax fees if I don't want to use my refund?
If you prefer not to pay TurboTax fees from your refund, you can typically pay directly using a credit card or debit card. This avoids the additional $40 "Refund Processing Service" fee.
How to know if I need TurboTax Deluxe vs. Premier?
You likely need TurboTax Deluxe if you own a home, itemize deductions, or have significant charitable contributions or medical expenses. You'll need TurboTax Premier (or the combined Premium online version) if you have income from investments (stocks, crypto), rental properties, or are self-employed with 1099-NEC income.
How to get a discount on TurboTax?
You can often get a discount on TurboTax by filing early in the tax season when promotional pricing is offered. Checking for special offers for new customers (especially through their mobile app), looking for student or military discounts, or potentially purchasing through third-party retailers (for desktop software) can also provide savings.
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