TurboTax Review 2024: Easy To Use But Can Be Pricey

TurboTax, a product of the financial, accounting, and tax-preparation software provider Intuit, has been around for nearly 40 years.

TurboTax has long been the most popular do-it-yourself tax software option, thanks to the company’s focus on design and user experience.

For example, when other tax software platforms asked the same questions to all users regardless of their tax situation, TurboTax pioneered a “click here if this applies to you” format. Users can select relevant topics—such as moving, marriage, a new job or selling stock—and skip sections that don’t apply to their situation.

In 2017, TurboTax Live was launched, allowing customers to reach out for help from a credentialed tax expert if they get stuck or have questions while preparing their returns. And in 2020, the company introduced TurboTax Live Full Service, which lets customers hand off their tax filing to an expert.

Whether you’re an experienced tax preparer or have little knowledge of tax law beyond knowing you need to file, TurboTax makes tax filing easy by allowing you to fill out fields automatically by uploading your W-2s and 1099s and walking you through the process with interview-style questions. It also offers numerous plain-language definitions and explanations if you’re unsure whether a particular income category or tax deduction applies to you.

If you get stuck, TurboTax offers live, on-screen support options. You can even turn your tax return over to a tax professional to complete, although this option comes with an additional fee.

Preparing your tax return with TurboTax is a lot like sitting down with a tax preparer. The software takes you through the tax preparation and filing process by asking you a series of simple questions about your situation.

As part of my review process, I went through the process of preparing three sample returns. Here’s how long it took me to get from start to finish for each one:

• Single taxpayer, no dependents, W-2 income and the student loan interest deduction: 13 minutes
• Married couple filing jointly, one dependent, two W-2s, Child Tax Credit and child and dependent care credit: 20 minutes
• Single taxpayer, no dependents, self-employment income, federal and state estimated tax payments: 30 minutes

During the process, a banner at the top of the screen keeps a running tally of your estimated federal and state refund or amount due.

Embedded links on each screen offer tips and explain income, deductions, and tax credits.

If you get stuck along the way, you have the option of paying an additional fee and upgrading to TurboTax Live to get on-demand help from a TurboTax expert or CPA. When you choose this option, the tax pro will do a final review of your return before you file it.

You can also pay an additional fee to move to Full Service and have your tax return prepared for you. Before filing your return, a tax pro will schedule a time to review it with you.

While the software offers many tips to help do-it-yourselfers, including a bot called the TurboTax Digital Assistant, you won’t have access to hands-on customer service unless you’re willing to upgrade to TurboTax Live.

And that’s another aspect of using TurboTax you should be aware of: near-constant urging to upgrade your package. During the 13 minutes I spent preparing a simple return, I encountered no fewer than three offers to upgrade.

Throughout the tax preparation process, you’ll periodically come across screens encouraging you to upgrade from Free* to Deluxe, get help from a TurboTax Live expert, or add TurboTax MAX—an extra package that includes audit representation, identity theft resources and priority customer service.

In some cases, these upgrades can be helpful. For example, if you could reduce your tax bill by itemizing deductions, upgrading from the Free edition* to Deluxe might make sense. And if you legitimately want extra help from a tax expert, you may be happy to pay for TurboTax Live. Just make sure you need and want the upgrade before accepting the offer.

Some reasons you may want to upgrade include:

• Your total itemized deductions are greater than the standard deduction available for your filing status.
• You have self-employment or rental income, capital gains and losses, or other income, deductions or credits not covered by the Free edition*.
• You don’t feel entirely comfortable preparing your tax return on your own and want help from a TurboTax Live or Full Service tax expert.
• You’re worried about an IRS audit or identity theft, and the peace of mind offered by TurboTax MAX is worth the extra fee.

TurboTax offers a variety of features designed to make tax filing convenient and stress-free, such as:

• Import of tax documents. If your employer participates, you can automatically import your W-2 into TurboTax’s software to save you time, rather than manually entering the information. You can also take a picture of your W-2 and other tax documents with your smartphone and import them with a mobile app.
• Fees payable from your tax refund. TurboTax offers you the option to pay your tax-prep fees out of your tax refund. It charges about $40 for the convenience.
• Live support. If you get stuck while preparing your return or have a tax question, TurboTax allows you to pay an additional fee to get live help from a tax professional. TurboTax Live starts at $89. Assistance with a state return costs an additional fee.

TurboTax Fees & Costs

TurboTax offers several pricing options, starting from a free version* for users with straightforward tax returns to pricier packages for people who’d rather turn their taxes over to a professional.

Those pricing options generally fall into three categories:

• Do-it-yourself: If you feel comfortable filing on your own with step-by-step guidance
• TurboTax Live: To get unlimited help and advice from a tax expert while you do your taxes, plus a review of your return before you file
• TurboTax Full Service: A tax expert prepares, signs and files your tax return for you

Currently, those pricing tiers are:

	Package	Price	Includes
Do-it-yourself options	Free Edition (For simple tax returns only. See if you qualify.)	$0 37% of taxpayers qualify. Form 1040 + limited credits only	Free filing of federal and state returns. For simple tax returns only. See if you qualify. Covers W-2 income, limited interest and dividend income, the Earned Income Credit, Child Tax Credit, the standard deduction, and student loan interest deduction
	Deluxe	$69 Federal $64 Per State	Allows itemized deductions
	Premium	$129 Federal $64 Per State	Allows reporting of capital gains and losses Allows reporting of income and expenses from rental properties and pass-through businesses
TurboTax Live	Deluxe	$139 Federal $69 Per State	Everything included in Deluxe, plus on-demand help from a tax pro via video and a final review of your self-prepared return
	Premium	$219 Federal $69 Per State	Everything included in Premier, plus on-demand help from a tax pro via video and a final review of your self-prepared return
	Basic	$89 Federal $69 State	Essentially the free version but with on-demand help from a tax pro via video and a final review of your self-prepared return
Full-Service	Full Service	Starting at $129 for Federal Price includes W-2 and 1040. State additional. Final price may vary based on your actual tax situation and forms used or included with your return. $69 for State

See MoreSee Less

These prices are the list prices advertised as of March 1, 2024, without any discounts that TurboTax may offer to people who file early in the tax filing season. If you want to pay your filing fee out of your federal refund, TurboTax charges an extra $40 processing fee for the convenience.

TurboTax Security

TurboTax’s software includes several features to safeguard your information, including:

• Multi-factor authentication. After you log in with your username and password, TurboTax sends a unique, single-use code to your verified device or email address, or it requires you to answer a series of security questions before accessing your account.
• Biometric support. TurboTax supports fingerprint or facial recognition when accessing your account via the mobile app.
• Data encryption. TurboTax encrypts all the data it stores and uses industry-standard TLS encryption when transmitting your tax return to the IRS or state tax authorities.
• Notifications. When you log into TurboTax, you can see a history of logins and devices used to access your account. You’ll also receive email notifications when changes are made to your account, such as updating your password, signing in from a new device, or updating your bank account information.

There are a few ways to buy TurboTax. You can:

• Access the cloud version from anywhere at TurboTax.Intuit.com
• Download the mobile app from the App Store or Google Play
• Download the desktop version
• Buy the desktop version on a CD, available on Amazon and at many office supply stores

TurboTax Online is generally easier to use than TurboTax Desktop because it automatically rolls your information forward from year to year, and you can easily upgrade your pricing tier if necessary.

Although TurboTax offers an easy-to-use process with helpful interview-style questions and many ways to obtain help when needed, it’s a bit pricier than its competitors.

TurboTax vs. TaxAct

TurboTax charges up to $129 for federal tax filing ($64 per state) for its costliest do-it-yourself tax package. If you need a tax professional, such as a TurboTax expert or CPA, to review your return, TurboTax charges up to $219 for federal tax filing and an additional $69 per state.

TaxAct provides professional tax expert assistance, which includes help from CPAs, enrolled agents (EAs) and tax attorneys, at an additional cost of $59.99.

TurboTax vs. TaxSlayer

TaxSlayer’s pricing is lower for do-it-yourself tax preparation, which costs up to $67.95 for federal tax filing ($44.95 per state).

TaxSlayer’s Premium or Self Employed versions offer tax assistance, but it’s limited to guidance.

TurboTax vs. H&R Block

H&R Block aims to avoid fee shocks with its “No Surprise Guarantee.” If the company fails to deliver transparent pricing up front and then explain any later price changes, you will receive an H&R Block coupon for 20% off next year’s tax preparation.

H&R Block also offers options for in-person tax prep. You can work with a tax pro virtually, through an appointment at an H&R Block office or by dropping off your tax documents at one of the offices. Fees for filing with an H&R Block tax pro start at $85 (plus $70 for a state tax return).

Learn more about Forbes Advisor Taxes Rating and Review Methodology.