The most popular version is TurboTax Deluxe, for $59 plus $49 per state. Those with more complex investments may need the $89 Premier version, while self-employed business owners will need the top $119 Self-Employed edition.
TurboTax is generally pricier than everything else out there, but even though confident filers may not need all the bells and whistles that most TurboTax online products offer, many people will find the experience and the availability of human help worth the extra cost.
There is no charge to e-file a tax return when using the TurboTax online editions, federal or state. The TurboTax account fees are for the use of the software to assist in completing a tax return. The fee is the same whether the tax return is e-filed or printed for mailing.
TurboTax is the most expensive option for filing taxes online, but offers a high-quality user interface and access to experts. It's especially valuable for self-employed filers who use QuickBooks integration.
You can avoid the fee by changing your payment method and paying with a card when you file.
The first $40 fee is the cost of TurboTax Deluxe. The second $40 fee is for using your refund to pay for your TurboTax fees. This process is called refund processing.
TurboTax is also offering its TurboTax Live Basic product at no cost for qualifying federal and state returns for a limited time. You'll need to file your return by March 31, 2022, and you'll need to have a simple return to be eligible to use this service.
Advantages of TurboTax
Lower costs, since you're using software instead of professional advice. Faster turnaround time, since you can sit down and do it yourself – although you may spend hours completing it. Ease of use, because you answer the questions and the algorithm handles it.
If your tax data requires entry on any other form or schedule then you must upgrade to the Deluxe edition or higher. If you have not paid for the online edition you are using, have not filed your tax return or registered the Free edition, then you can clear your return and start over with a lower priced edition.
Most people choose to use the online service. TurboTax reported that 80% of the returns it handled came from its online products. When you have a choice between buying the software you install on your computer and paying to use the service online, you are better off buying the software download.
If you're looking for an excuse not to e-file, it isn't cost, because the IRS and states do not charge for e-filing. The only costs associated with e-filing are those charged by a tax preparer or tax software. Depending on the software brand and version, electronic filing charges have ranged from free to around $25.
Using the desktop editions of TurboTax there is currently a $19.99 fee to e-file a state income tax return.
TurboTax charges up to $119 for federal tax filing ($49 per state) for its highest “do-it-yourself tax” package. Other programs, such as TaxSlayer, charge up to $47.95 for federal tax filing ($36.95 per state) for a similar package. Along with its easy-to-use platform, TurboTax has excellent customer service options.
"Depending on your personality, using an accountant may relieve some of that stress and pressure," Ms Bain says. They can also help you moving forward to stay on top of things. "If you own or run a business, an accountant can help you keep the necessary financial records required by law," Ms Higgins says.
TurboTax is an inexpensive option to prepare simple tax returns with algorithmic triggers for potential deductions. On the other hand, CPAs, though high-priced, are adept at handling complex financial dealings through prompt human interaction.
Not only could a scam tax preparer steal your refund, but he or she could also use your personal information to get government benefits or loans in your name.
IRS E-file Opens: January 24, 2022
The IRS announced that the IRS E-file open date will begin on January 24, 2022. You can file your taxes with TurboTax today! TurboTax is officially open and accepting e-filed returns.
Free File members for tax season 2022 are: 1040Now, Inc.; ezTaxReturn.com (English and Spanish); FileYourTaxes.com; Free Tax Returns.com; On-Line Taxes, Inc.; TaxAct; TaxHawk Inc; and TaxSlayer (English and Spanish).
TurboTax notes online: "Intuit has elected not to renew its participation in the IRS Free File Program and will no longer be offering IRS Free File Program delivered by TurboTax." TurboTax is the second big name to stop participating. H&R Block exited Free File in October 2020.
No. TurboTax does not have any hidden fees. All of our fees are disclosed in our literature and user agreements.
Intuit, the company behind TurboTax, has agreed to pay out $141 million after it “cheated millions of low-income Americans out of free tax filing services,” in the words of New York Attorney General Letitia James. Most of that money will go to consumers that were tricked into paying for its service.