TurboTax Review [2024]: A User-Friendly Program That Makes Filing Simple

TurboTax is one of the best-known and widely used online tax preparation software programs — and with good reason. It's user-friendly, walks you through filling out all your forms, and actually makes filing and paying taxes simple.

But all of this convenience can come at a cost, as Turbotax online products tend to be more expensive than many competitors if you need to do anything beyond filing a 1040 form, such as filing a business tax return. You may find that it's worth paying a premium for all the features it offers, though, including guidance on how to manage your money. This TurboTax review will help you decide.

TurboTax overview

TurboTax is owned by Intuit, which also offers other well-known financial software, including Mint and Quickbooks. According to the company, which was founded all the way back in 1983, its mission is "powering prosperity around the world."

TurboTax has become a well-established brand over the three decades it's helped people do taxes and is now the best-selling tax software provider in America. Tax filers trust it because of its long history but also because it provides multiple guarantees.

It not only guarantees its calculations are 100% accurate so you can avoid some common tax mistakes, but it also promises to maximize your refund. If another tax prep method gets you more money back, it'll refund what you paid for the software or give you $30 if you used the TurboTax Free Edition.

How much does TurboTax cost: Products and prices

TurboTax Free Edition offers qualifying taxpayers the chance to use its software and file for free if you're claiming the standard deduction. Roughly 37% of taxpayers qualify, form 1040 and limited credits only.¹ If you hope to claim any other deductions — including a deduction for student loan interest or contributions to retirement accounts or health savings accounts — you'll need to upgrade to the Deluxe product, which is costlier.

For those whose returns are even more complicated because of business expenses, rental properties, or investment income, the price climbs very quickly. TurboTax also charges a fee per state return (unless you're using TurboTax Free Edition), so the program gets even more expensive if you live or work in one or more states that impose a personal income tax.

If you find taxes confusing and want a tax expert to review your return, you can opt to pay an additional premium for live support. You'll get on-demand access to an expert who you can talk to right from your computer screen. You can ask as many questions as you want as you're filing taxes, including having the expert do a line-by-line review of your return. While this is a great feature for those who are nervous about getting everything done right, the cost is about double, depending on which product you've chosen. 

If you'd prefer to have a tax expert file taxes for you, TurboTax also offers this option with its full-service product. You simply upload your tax forms, and an expert will prepare your returns. You have the option to request tax advice and ask questions throughout the year, not just at tax time, and you'll be able to do a one-on-one consultation with your tax expert before they file your returns. 

The table below shows the price of your options so you can see how much you'd have to pay based on the type of return you need to file and the level of support you'll require.

Product	Cost	Best for...
TurboTax Free Edition	$01	Taxpayers with very simple returns only who want to file federal taxes and state taxes for free (~37% of taxpayers qualify. Form 1040 and limited credits only.)
TurboTax Basic	$89 for Live Assisted Basic +$59 per state	Taxpayers with simple tax situations who want a tax expert to review their return (~37% of taxpayers qualify. Form 1040 and limited credits only.)
TurboTax Deluxe	$59 + $59 per state $129 + $64 per state for Live Assisted Deluxe	Taxpayers with deductions, including the student loan interest deduction
TurboTax Premium	$119 + $59 per state $209 + $64 per state for Live Assisted Premium	Taxpayers with investments, cryptocurrency, rental income, business income, or business expenses
TurboTax Live Full Service	Starting at $119 + $64 per state	Taxpayers who want a tax expert to file for them from start to finish (Price includes W-2 and 1040. State additional. Final price may vary based on your situation and forms used or included with your return)

How does TurboTax work?

TurboTax prides itself on making taxes as simple as possible, and its user-friendly interface achieves this objective. The program guides you through completing your federal and state tax return by asking you basic questions about your life in simple, plain language. Based on your answers, the program not only fills out your tax documents for you but also helps you identify deductions and credits you're entitled to. Its database of more than 350 deductions ensures you won't miss any chance to save on your taxes.

Completing your forms is also incredibly simple, thanks to the fact TurboTax allows you to take a picture of your W-2. The program uses the information from your picture to autofill your tax forms.

If you need a little extra help, you can talk to a tax expert on demand. And once your forms are complete, you have the option to have everything checked over by an expert. While this add-on of live support costs a little more than if you do everything yourself without help, you'll likely still pay less than if you hired an accountant on your own. If you want to take your tax return off your plate entirely, you can also opt to pay an additional fee and have a tax expert do your taxes for you with a TurboTax Full Service package.

Best of all, you don't have to stress over errors on your state or federal return, as TurboTax offers both a guarantee that the math is done properly and a guarantee that you'll qualify for the maximum deductions and credits.

If you're charged a penalty because TurboTax made a math error, your penalty and interest will be paid. And you'll be refunded for the price of the program or given $30 if you used the free edition, and another tax prep program got you a bigger refund.

TurboTax pros and cons

Pros

• The company's user-friendly interface. Doing your own taxes is both quick and easy, thanks to the auto-filled forms and the fact you're asked simple questions to complete your forms and identify opportunities to save.
• The chance to get support from a tax expert. If you want added reassurance, access to professional advice from a real person can make all the difference.
• The TurboTax guarantees. Tax penalties can be costly, but you won't have to worry about owing money due to a math error.
• Audit support: You'll get free answers to questions year-round if you're audited by the IRS. And TurboTax provides the option to get professional advice at an additional cost.
• Access to tax experts: If you'd prefer an expert to prepare your tax return, TurboTax offers this option. 

Cons

• The program can get expensive, especially if you pay for live support. Unfortunately, you cannot claim common deductions, including the student loan interest deduction, if you use TurboTax Free Edition, so many filers will have to pay.
• The maximum refund guarantee only refunds what you paid to file (or $30 if you used TurboTax Free Edition). If you missed out on deductions or credits, TurboTax doesn't refund you the amount you'd have saved on your taxes.

It can help to compare TurboTax to other tax preparation software available such as TaxAct and H&R Block. With a side-by-side comparison of TaxAct vs. TurboTax vs. H&R Block, you can better determine if TurboTax maximizes the advantages you need while limiting the drawbacks.   

How to contact TurboTax

TurboTax provides access to an online forum where you can ask questions and get answers from other community members. There is also a searchable database offering instructions and video tutorials.

If you need to call TurboTax, tech support is available via phone at 888-777-3066, which is the general customer support line. You can also sign in to your account and connect via phone or chat with an expert offering personalized support for your specific issue. If you pay for TurboTax Live, tax help is available via screen-sharing and video support.

FAQs

Bottom line

TurboTax is one of the best tax software providers because it's easy to use, offers ample support, and provides product guarantees that should give you peace of mind. While the price may be a little higher than some competitors, you may just find the added cost is worth paying this tax season, thanks to all this program has to offer.