Tax season can feel overwhelming, but the right software can simplify the process. TurboTax is one of the most popular tax filing options, known for its user-friendly interface, step-by-step guidance and features designed to help filers maximize refunds while minimizing errors.
As of March, the IRS reported the average direct deposit tax refund this year is $3,330. With that much money on the line, it’s important to use a tool that checks for errors and helps you file with confidence.
TurboTax is especially well-suited for people filing simple tax returns — think W-2 income, student loan interest and a few common tax credits. While its free version works well for basic needs, paying for a higher tier can be worth it for the added support if your return is a bit more complicated.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
With tax laws changing regularly, TurboTax remains valuable thanks to its in-depth guidance, educational resources and hands-on help throughout the filing process.
The company is also investing heavily in AI to help automate filing and catch potential mistakes in real-time.
So, is TurboTax right for you? Let’s take a closer look at the pros, cons and everything in between.
How to choose the right version of TurboTax
Selecting the right TurboTax option depends on your tax situation. The goal is to get the features you need — without paying for upgrades you don’t.
The online version offers the flexibility of accessing your tax information from any internet-connected device, with data securely stored in the cloud. You can switch back and forth between TurboTax online and the app seamlessly.
You can use the app to snap a pic of your W-2 and other documents and your information will be automatically entered in your return. It’s important to note that the mobile app doesn’t have access to the print center or tax tools.
The desktop version is installed on your computer, allowing for offline access and local data storage. Both versions support state tax returns, though additional fees may apply.
TurboTax provides various support levels, ranging from self-service to live assistance and full-service options where a tax expert manages your entire return. The following breaks down of some of the available options:
- TurboTax Free Edition (Free): Ideal for simple tax situations, such as W-2 income, limited interest and dividend income and claiming the standard deduction.
- TurboTax Deluxe ($69): Recommended for taxpayers looking to maximize deductions and credits, especially if you have significant deductions like mortgage interest, charitable contributions or medical expenses. Users can upgrade to Deluxe Assisted ($119) and get unlimited expert help while filing.
- TurboTax Premier ($115): Good for individuals with investment income, including stocks, bonds, ESPPs, crypto transactions or rental property income. Includes 5 federal e-files and one state download. Live expert tax advice is an additional $50 ($10 savings).
- TurboTax Premium ($129): Designed for freelancers, contractors and small business owners to help identify industry-specific deductions and expenses. Users can upgrade to Premium Assisted ($199) and get unlimited expert advice while filing.
TurboTax software can be downloaded directly from the TurboTax website, or purchased from popular retailers like Costco and Best Buy, both online and in-store.
These retailers often offer bundles or limited-time discounts, so it’s worth comparing prices before you buy.
There are several discounts and free filing options available for those who qualify. USAA members can access exclusive savings when purchasing TurboTax through the USAA website.
While active-duty and reserve military members may be eligible to file their federal and state tax returns for free.
TurboTax features that help maximize your tax refund
TurboTax offers several features designed to simplify tax preparation and help users get the biggest possible refund. One standout feature I really like is the ability to import W-2s, 1099s and investment income reports directly from financial institutions.
This can save time and reduce errors, especially for users with multiple income sources — though not all financial institutions are supported.
TurboTax offers a tool called the Deduction Maximizer, which helps users uncover tax breaks they might otherwise miss. It scans for eligible deductions and credits, including mortgage interest, student loan interest and charitable contributions.
While this tool can boost refunds, it may occasionally encourage upgrades that aren't necessary for every tax situation.
For those seeking additional help, TurboTax Live connects users with tax experts for real-time assistance. This service is ideal for complex returns but comes at an added cost, which may not be worthwhile for simpler filings.
TurboTax also includes an accuracy guarantee and audit support. While these features offer peace of mind, it's important to note that audit support is limited to guidance rather than full representation.
What to know before filing your taxes with TurboTax
While TurboTax simplifies the tax filing process, there are a few considerations to keep in mind. Before filing with TurboTax, it’s important to know that not all versions are free.
The free version is designed for simple tax returns and may not cover more complex situations like itemized deductions or certain types of income.
If your tax situation involves freelance work, rental properties or investment income, you’ll likely need to upgrade to a paid version, such as TurboTax Premier or TurboTax Premium.
Finally, users can file state tax returns through TurboTax for an additional fee in most cases. However, some states offer free filing options, so it's worth checking local requirements before paying for the add-on.
Is TurboTax the right tax software for you?
TurboTax takes much of the complexity out of tax preparation by offering a guided, user-friendly experience that supports a wide range of tax situations.
Whether you’re filing a basic return or juggling multiple income streams — like freelance work, investments, or rental properties — TurboTax provides tools and expert guidance to help you file accurately and confidently.
Features like document import and deduction-finding tools can help maximize your refund, but it’s important to consider whether you actually need the higher-tier upgrades or expert help. Not every filer will benefit from these paid add-ons, so review your tax situation carefully before choosing a version. of the software to file your taxes.
Ultimately, the goal is to simplify your tax season — not add unnecessary costs. With the right version and a clear understanding of your needs, TurboTax can make filing your taxes a streamlined and stress-free experience.
related content
-
I'm 54 with a $320,000 IRA and will soon be self-employed, earning about $120,000 per year. How much should I be saving for retirement?We asked financial experts for advice.
-
This High-Performance Investment Vehicle Can Pump Up WealthLeave online real estate investing to the beginners. Accredited investors who want real growth need the wealth-building potential of Delaware statutory trusts.
-
I'm a Real Estate Investing Pro: This High-Performance Investment Vehicle Can Move Your Wealth Up a Gear
Leave online real estate investing to the beginners. Accredited investors who want real growth need the wealth-building potential of Delaware statutory trusts.
-
I'm an Investment Adviser: This Is the Retirement Phase Nobody Talks AboutWhat you do in the five years before retirement and the first 10 afterward can establish how comfortable you'll be for the rest of your life.
-
Gen X Turns 60: It's Time to Remix Your Retirement PlaylistIf you want a worry-free retirement, you can't keep playing the same old song. You need to freshen up your financial strategies, as well as your music.
-
I'm a Financial Adviser: Here's How a Three-Part Retirement 'Crash Plan' Can Prepare You for Market TurbulenceHaving a plan ready to go when markets get wild — covering how you'll handle income, rebalancing and taxes — can be the ultimate retirement secret weapon.
-
Ask the Editor, November 14: 20% Qualified Business Income DeductionAsk the Editor In this week's Ask the Editor Q&A, Joy Taylor answers questions on the 20% tax deduction for qualified business income or QBI.
-
Here's How to Plan This Year's Roth Conversion, From a Wealth ManagerWhile time is running out to make Roth conversions before the end of the taxable year, consider taking your time and developing a long-term strategy.
-
Four Times You Need a Second Opinion on Your Financial PlanIs your financial plan fit for purpose — or is your adviser peddling an outdated strategy? When you see these red flags, it's time for a second opinion.Evan
-
Seven Practical Steps to Kick Off Your 2026 Financial PlanningIt's time to stop chasing net worth and start chasing real worth. Here's how to craft a plan that supports your well-being today and in the future.
