TurboTax Review 2024: Pros, Cons, Pricing, & Alternatives

Are you interested in handling your tax filing independently but require help in determining the forms to file and deductions to claim? If you’re comfortable encountering many prompts to upgrade or add extra features, TurboTax could be the ideal tax filing software for you.

Let's examine the areas where TurboTax stands out and its associated costs, which will help you decide whether to use it for the 2024 tax season.

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Who Is TurboTax Best For?

TurboTax presents itself as an excellent option for individuals with complex tax circumstances seeking professional assistance in preparing their returns and willing to pay a higher fee for such services.

If you prefer the convenience of handing over your tax documents to an expert who will handle all the necessary work on your behalf, TurboTax is a viable choice.

Small business owners using QuickBooks for their accounting needs may find it helpful to use TurboTax since both services are offered by the same company and offer seamless integration between them.

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TurboTax Pros & Cons

TurboTax Pros

• Suitable for tax situations of moderate complexity where help with deductions and forms is needed
• Provides detailed guidance in a step-by-step format
• Option to upgrade for immediate access to a tax expert

TurboTax Cons

• Not all users may meet the requirements for a $0 filing option
• For many tax situations, this service is the most costly option
• Determining eligibility for a free or low-cost option may be challenging until the process is completed

How Much Does TurboTax Cost?

TurboTax typically has a higher price point compared to other tax preparation services. The more advanced packages can cost at least $100 in total for both federal and state returns.

For filing your taxes, TurboTax online provides four different options that cater to your specific tax requirements. Except for the desktop software version, all other versions allow you to enter your information without any charge. You only incur fees when you submit and file your federal and state tax returns.

• Self-Preparation Option: Costs range from $0 to $119 (approximately 37% of taxpayers are eligible for free filing, limited to Form 1040 with basic credits). This edition covers income from W-2s, unemployment, retirement distributions, limited 1099 interest and dividends, the Earned Income Tax Credit (EITC), and the Child Tax Credit (CTC). However, it doesn’t support itemizing deductions or claiming student deductions or credits.
• Assisted Filing: Priced from $0 to $209, this service tier includes all features of the basic edition, with the addition of itemizing deductions, mortgage interest, and other complex tax situations. The basic version is suitable for those with simpler tax scenarios. State returns are charged at $49 for this level of service.
• Full-Service Tax Preparation: Ranging from $119 to $459, TurboTax's highest-tier plan pairs you with a local expert tailored to your specific situation, enabling you to complete your taxes as early as January 8. You can communicate with the tax professional via phone or video conference. With this option, the tax professional handles your taxes, signs the return, and submits it on your behalf.

Extra Fees You Might Have to Pay With TurboTax

• You May Require State Filing: If you reside in one of most states mandating state income tax filings, you might need to pay an additional $59 or $64 per state, depending on your tax scenario. If you have lived or worked in multiple states, you may need to file returns for each state.
• Opting for TurboTax Live: By paying a premium price, you gain access to instant, live help from a tax expert.
• Choosing TurboTax Live Full Service: For approximately double the cost of self-filing, you can enlist the services of a tax expert to handle the entire process for you. The fee ranges between $119 and $459 for a federal return.
• Paying TurboTax From Your Refund: If you anticipate a tax refund, TurboTax offers the option to use a portion of it to cover its tax preparation services. While this may seem convenient, be mindful that a $40 processing fee is applicable.

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TurboTax's Handy Features

TurboTax offers the convenience of switching from other providers by importing electronic PDFs (not scanned copies) of tax returns. This feature supports imports from popular providers such as H&R Block, TaxAct, TaxSlayer, Liberty Tax/Tax Brain, and ezTaxReturn.

• Automated import of specific tax documents: TurboTax enables you to seamlessly import W-2 data from your employer if they’re partnered with TurboTax. Alternatively, you can photograph your W-2 and upload it to transfer the information to your return. The Premium version offers the capability to upload 1099-NECs and 1099-Ks from clients through photos, as well as import income and expenses from platforms such as Square, Uber, and Lyft. TurboTax boasts a wide range of import partners to facilitate this process.
• Cryptocurrency support: TurboTax’s Premium package addresses a common challenge for cryptocurrency investors by eliminating manual data entry. Users can import up to 20,000 crypto transactions simultaneously.
• Donation calculator: Integrated into the Deluxe and Premium packages, ItsDeductible, a feature, and standalone mobile app, provides convenient help in determining the deduction value of donated items like clothing and household goods.
• Cross-platform accessibility: Similar to many other service providers, TurboTax allows users to access and work on their tax returns across multiple devices, including computers via the website and mobile phones or tablets.
• Spanish language support: TurboTax recently added Spanish language support for users of its online products, enabling individuals to complete their taxes in Spanish if they prefer.

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TurboTax's Human Tax Help

TurboTax Live Assisted

One of TurboTax's standout features is TurboTax Live Assisted. This service, available for an additional fee with every package, provides screen sharing and phone or chat access to tax professionals.

These experts are there to assist you with any questions that may arise while filling out your tax return. From January 29th until the April tax filing deadline, you can take advantage of this feature seven days a week between 5 a.m. and 5 p.m. Pacific time.

When using this service, taxpayers are matched with a professional who specializes in their particular question or concern. If you're not satisfied with your assigned expert, you have the option to request a new one.

According to TurboTax, these professionals have either undergone rigorous vetting or are employees of TurboTax who have received internal training in taxation matters.

Once connected with your pro, you will also be able to view their qualifications and credentials. Utilizing the Live Assisted option grants you the opportunity for a final review from a tax professional before submitting your return.

TurboTax Live Full Service

TurboTax also provides Live Full Service, which eliminates the need for tax software entirely. Instead, you submit your tax documents and a real person compiles your tax return. They will pair you with a tax preparer whom you can connect with through a video or phone before they work on your return.

Once your return is ready for review, you will have another meeting with the preparer. They will file the return on your behalf, and if you opt to use Full Service again next year, you have the option to request the same tax professional if they’re available.

The prices for this service range from $169 to $359 and cover Form W-2 and Form 1040. State returns come at an additional cost. The company states that the final price may vary depending on factors such as your specific tax situation and which forms are used or included in your return.

Intuit TurboTax Verified Pro

Introducing a new feature this season, TurboTax now offers certain Full-Service filers the opportunity to collaborate with an on-site tax professional. As stated by Intuit, the local professional undergoes a thorough screening process. However, stepping outside of the TurboTax realm comes with potential differences in work schedules and services offered compared to what is advertised by TurboTax.

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How Does TurboTax Work?

TurboTax provides personalized guidance for completing your taxes based on your specific circumstances. The user-friendly interface offers step-by-step instructions for most tax forms. Whether you prefer to work on your taxes using the mobile or web versions, TurboTax allows you to switch between platforms seamlessly.

Importing tax forms directly from banks and investment companies is made easy with TurboTax. The mobile app even lets you take photos of supported forms and upload them effortlessly. You can upload your previous year's tax return. Should you require live support, upgrading at any point during the process is always an option.

TurboTax offers various methods for receiving your refund. You can choose to have your federal refund deposited into a bank account, sent as a check, or loaded onto a prepaid debit card.

TurboTax provides refund advance loans at the start of tax season for added convenience. To ensure accuracy and peace of mind, the company guarantees reimbursement of IRS penalties and fees resulting from calculation errors. However, please note that this guarantee only applies if information is entered correctly.

Is TurboTax Safe to Use?

Intuit employs cutting-edge technology and strategies to ensure your data's security and privacy. The company continuously enhances its cybersecurity measures, working closely with global security researchers. It implements safeguards like multi-factor authentication and AES-256 data encryption.

When inputting sensitive personal details, such as your Social Security number or date of birth, on a website, take extra safety measures. For instance, opt for a trusted network like your home Wi-Fi.

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TurboTax Ease of Use

Getting your taxes in order using TurboTax is similar to having a one-on-one consultation with a tax professional. The software guides you through preparing and filing your taxes by presenting a series of interview-like questions.

During our review, we went through the steps of preparing three sample tax returns. Here's the time it took us to go through each return, from beginning to submission:

• Individual taxpayer with no dependents, W-2 earnings, and eligibility for the student loan interest deduction: 13 minutes
• Married couple filing jointly with one dependent, two W-2 forms, eligibility for the Child Tax Credit and child and dependent care credit: 20 minutes
• Single taxpayer without dependents, self-employment income, and making federal and state estimated tax payments: 30 minutes

Throughout the procedure, a running tally of your expected federal and state refund or amount owed is continuously displayed at the top of the screen.

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Does TurboTax Check Your Return?

After completing your data entry, TurboTax thoroughly reviews your return to ensure accuracy and notifies you of any mistakes or missing information.

If you have a tax liability instead of receiving a refund, there’s an option to withdraw the money directly from your checking account. Alternatively, you can make your payment on the IRS's Direct Pay website. To settle state taxes owed, contact the appropriate department within your state's revenue agency.

Can You Do Your Taxes on Your Phone With TurboTax?

You can easily handle your tax preparation and filing, even if your return is complicated with investment sales or self-employment, using TurboTax's mobile apps for iPhone, iPad, and Android.

These apps aren’t only visually appealing but also user-friendly, providing a seamless experience. They closely resemble the desktop version in terms of appearance and functionality while offering convenient options for data entry and importing. Kudos to TurboTax for creating such an impressive tool!

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TurboTax Review – Is It Legit?

Here are a few genuine testimonials from purchasers and clients of TurboTax that can assist you in making a more well-informed and superior choice.

TurboTax Alternatives

TaxSlayer 

TaxSlayer stands out as an excellent choice for small business filers due to its ability to handle complex returns at a competitive price compared to other major players in the industry. With TaxSlayer, you can take advantage of a priority phone line, reliable customer service, and an intuitive platform that simplifies the tax filing process.

What sets TaxSlayer apart is its flexibility in providing assistance. The guided interview feature offers a step-by-step approach that ensures quick and accurate filing. Alternatively, if you're confident in your knowledge and prefer a more streamlined experience, you can directly access specific tax forms to input your income and deductions. This option saves time especially if you already know what information you need.

By choosing TaxSlayer for your small business taxes, you not only gain access to comprehensive support but also enjoy the benefits of affordability without compromising on quality or efficiency.

>> File Your Taxes Online With TaxSlayer >>

H&R Block 

While H&R Block is widely known for its physical offices across the United States, it provides online filing options and downloadable software. If you opt for their online package, you can conveniently manage your taxes using their mobile app available on Android and iOS devices.

H&R Block caters to numerous tax filers by offering a user-friendly interface that’s both modern and easy to navigate. Similar to other tax-preparation services, the platform guides users through a series of inquiries regarding their household income, as well as potential deductions and tax credits.

>> File Your Taxes Online With H&R Block >>

TaxAct 

TaxAct is the ideal choice for individuals who prioritize affordability without compromising on functionality. It provides a user-friendly and efficient interface for filing taxes at a lower cost than premium software options.

Those who are comfortable navigating the tax filing process independently will benefit from using TaxAct's software. However, all of TaxAct's plans now include access to experts who can address any questions that may arise during the filing process, which adds significant value.

While TaxAct may not be as budget-friendly as TaxSlayer, it outperforms its competitor in terms of reliability regarding features like document upload and import. If you’re willing to invest more in these time-saving capabilities, choosing TaxAct would be a wise decision.

>> File Your Taxes Online With TaxAct >>

TurboTax Review – FAQs

Is State Tax Filing Free With TurboTax? 

Indeed, this applies only to uncomplicated filers (typically referring to W-2 income, using the standard deduction, and possibly claiming the Earned Income Tax Credit and child tax credit). Where your return is more intricate, you will be charged $59 to $64 for each state tax return.

What Happens If the IRS Audits My Return? 

If your tax return, prepared using TurboTax, is audited by the IRS, you will receive free assistance for the audit. This means that a TurboTax expert will review any correspondence from the IRS and inform you what to expect and how to prepare accordingly.

However, you'll need to upgrade to TurboTax MAX to have a TurboTax professional represent you during the audit process.

While it may not be the most cost-effective option for filing taxes among most users, TurboTax is known for its user-friendly interface and various features that simplify the tax filing process. If you prefer a more hands-off approach during tax season, upgrading to a full-service package is always an option.

Does TurboTax Import My W-2 or 1099? 

If you work for a company, use a payroll service, or have an account with a financial institution that partners with TurboTax for imports, you can import your W-2s and 1099s. If you still need to, you can take a photo of these documents and upload them to automatically input the information into your tax return.

There’s also the possibility of importing sales data from your brokerage account directly into TurboTax instead of manually entering each transaction.

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Bottom Line: Is TurboTax Right For You?

With its user-friendly interface and diverse customer support choices, TurboTax sets the bar for the self-tax preparation industry. This convenience comes with a cost, and savvy taxpayers may discover that rival companies offer better bang for their buck.

>> File Your Taxes Online With TurboTax >>

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