TurboTax Review

4.5/5

Taxpayers who want the most polished, user-friendly experience and are willing to pay a premium for extensive guidance, strong import capabilities, and peace of mind with accuracy guarantees.

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TurboTax by Intuit is the most widely used tax preparation software in the United States, serving over 40 million taxpayers annually. Its dominance is built on an exceptionally polished user interface, powerful data import features, and comprehensive guidance that makes tax filing accessible even for people with no tax knowledge. The software uses an interview format, asking plain-language questions and translating your answers into the correct tax forms behind the scenes.

The 2025 edition continues to refine its AI-powered features, including expanded document scanning, smarter deduction suggestions, and an improved conversational assistant. TurboTax excels at identifying deductions and credits you might miss, and its accuracy guarantee promises to cover penalties and interest if the software makes a calculation error.

However, TurboTax comes at a significant cost premium. The Deluxe edition starts at $69 for federal filing alone, with state returns adding $64 each. By the time you add a state return and any a la carte features, many filers spend $130 or more. The free tier covers only the most basic returns and is quick to suggest an upgrade the moment you enter a tax situation beyond simple W-2 income.

TurboTax also offers Full Service and Live Assisted options where a credentialed tax professional reviews or fully prepares your return. These premium services add substantial cost but can provide value for complex situations or taxpayers who want human expertise alongside software convenience.

Pricing

Free

$0
  • Simple tax returns (Form 1040 only)
  • W-2 income
  • Limited interest and dividend income (1099-INT, 1099-DIV)
  • Standard deduction only
  • Earned Income Tax Credit
  • Child Tax Credit

Deluxe

$69
  • Everything in Free
  • Itemized deductions (Schedule A)
  • Mortgage interest and property tax deductions
  • Student loan interest and education credits
  • Health Savings Account (HSA) contributions
  • Charitable donation tracking

Premium

$129
  • Everything in Deluxe
  • Investment income (stocks, bonds, crypto)
  • Rental property income (Schedule E)
  • Capital gains and losses (Schedule D)
  • Foreign income and tax credits
  • Cost basis calculations

Self-Employed

$169
  • Everything in Premium
  • Schedule C for business income
  • Quarterly estimated tax calculations
  • Business expense categorization
  • Vehicle and home office deductions
  • Industry-specific deduction finder
  • 1099-NEC and 1099-K income

Pros

  • Industry-leading user interface with intuitive interview-style guidance that walks you through every section step by step
  • Excellent import capabilities that pull W-2s, 1099s, and investment data directly from hundreds of employers and financial institutions
  • Comprehensive help resources including searchable knowledge base, community forums, and context-sensitive explanations for every field
  • Robust error checking and audit risk assessment with personalized accuracy guarantee
  • Seamless photo capture for W-2s and receipts using the mobile app with accurate OCR recognition
  • Full-service option to have a tax professional prepare and file your return entirely
  • Free state filing included only with the Free tier; additional state returns cost $64 each for paid tiers

Cons

  • Most expensive option among major tax software providers, with aggressive upselling throughout the filing process
  • Free tier is very limited and frequently prompts upgrades for common tax situations like student loans or HSA contributions
  • State filing adds $64 per state for Deluxe and higher tiers, significantly increasing the total cost
  • Previous controversy over lobbying against IRS Free File and misleading "free" advertising
  • Year-over-year price increases have made it progressively more expensive for returning customers

Features

FeatureIncludedNotes
Federal e-filing
State e-filingFree with Free tier; $64/state for paid tiers
W-2 and 1099 photo import
Direct import from 1,500+ employers/institutions
Itemized deductions (Schedule A)Deluxe tier and above
Investment income (Schedule D)Premium tier and above
Self-employment income (Schedule C)Self-Employed tier only
Cryptocurrency tax reportingPremium tier and above
Live expert help via chat/videoAvailable as paid add-on across all tiers
Audit defense and representationMAX Defend & Restore add-on ($59)
Prior year data import
Mobile app filing

Our Verdict

TurboTax remains the gold standard for tax software usability and features, but you pay a premium for that polish. It is the best choice for taxpayers who value a smooth experience and comprehensive guidance, particularly those with moderately complex returns. Budget-conscious filers with simple returns should consider free alternatives like FreeTaxUSA or Cash App Taxes.

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FAQ

Is TurboTax Free really free?
TurboTax Free Edition covers simple returns with W-2 income, the standard deduction, and limited interest/dividend income. It includes free federal and state e-filing for qualifying returns. However, many common situations like student loan interest, HSA contributions, or itemized deductions require upgrading to a paid tier.
Can TurboTax handle cryptocurrency taxes?
Yes, TurboTax Premium and Self-Employed editions support cryptocurrency tax reporting. You can import transactions from popular crypto exchanges like Coinbase and can handle various crypto events including sales, trades, and staking rewards. The software calculates gains and losses and generates the appropriate Schedule D and Form 8949.
Does TurboTax offer an accuracy guarantee?
Yes, TurboTax provides a 100% Accurate Calculations Guarantee. If TurboTax makes an arithmetic error that results in your paying a penalty or interest to the IRS or state, Intuit will reimburse you for the penalty and interest. You must be using the current year product and have paid for the software.
How much does TurboTax cost with a state return?
For paid tiers, state returns cost $64 each. So Deluxe with one state is $133, Premium with one state is $193, and Self-Employed with one state is $233. The Free tier includes one free state return. Multi-state filers face additional costs for each extra state filing.
Can I switch from another tax software to TurboTax?
Yes, TurboTax can import prior-year data from competing products including H&R Block and TaxAct via PDF import of your previous year return. This saves time by pre-filling personal information and carrying forward relevant data like depreciation schedules and capital loss carryovers.

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