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Source: The College Investor
TurboTax is the market leader in online tax preparation services, and we just finished our early testing and review of their 2024-2025 tax software options.
For the 2025 tax season (for tax year 2024), TurboTax will remain the most popular tax preparation software for several reasons.
Although it’s certainly not the cheapest option for do-it-yourself tax preparation, it offers an industry-leading user interface that's easy to navigate and supports nearly any tax situation. You can also upgrade to have a tax pro review your return or complete your taxes for you based on the documents and information you provide.
After years as our top overall choice for tax preparation, it’s slipped from the first place spot due to the cost. We still think it’s the easiest way to do your taxes yourself and a top pick for those with more complex taxes. However, the average filer can find a better deal elsewhere.
Here’s a closer look at the pros and cons of TurboTax to help you understand if it makes sense for your needs. Also, check out how TurboTax compares in our annual list of the best tax software.
Quick Summary
- Easy to use, robust tax filing experience
- Works well for investments and small business returns
- One of the more costly online tax preparation apps
TurboTax Details | |
|---|---|
Product Name | TurboTax |
Federal Price* |
|
State Price* | $0* to $69+ |
Preparation Type | Do Your Own, Live Assistance, Live Full Service |
Promotions | Vary |
*~37% of filers qualify for $0 federal & state filing. Simple 1040 returns only (no schedules except for Earned Income Tax Credit, Child Tax Credit and student loan interest).
**Price estimates are provided prior to a tax expert starting work on your taxes. Estimates are based on initial information you provide about your tax situation, including forms you upload to assist your expert in preparing your tax return and forms or schedules we think you’ll need to file based on what you tell us about your tax situation. Final price is determined at the time of print or electronic filing and may vary based on your actual tax situation, forms used to prepare your return, and forms or schedules included in your individual return.
Table of Contents
TurboTax - Is It Really Free?
What's New In 2025?
Does TurboTax Make Tax Filing Easy In 2025?
TurboTax Top Features
TurboTax Drawbacks
TurboTax Pricing And Plans
How Does TurboTax Compare?
What Support Does It Offer?
Is It Safe And Secure?
Where To Buy TurboTax
Why Should You Trust Us?
Is It Worth It?
Common Questions
Features
TurboTax - Is It Really Free?
The Turbo Tax Free Edition offers free filing for limited users with simple taxes. This tier can be used by those with typical W-2 or Social Security Income, but it only supports Form 1040 and limited credits. According to TurboTax, about 37% of taxpayers qualify for the TurboTax Free Edition, which includes Form 1040 and a limited list of credits (no schedules except for Earned Income Tax Credit, Child Tax Credit and student loan interest).
With the free tier, bank interest is included, along with investment dividends not requiring Schedule B. For itemized deductions, you’ll have to upgrade to a paid tier. Free filing with the TurboTax Free Edition includes the Child Tax Credit, Student Loan Interest Deduction, and the Earned Income Credit.
Tax returns with HSAs, child care expenses, charitable contributions, unemployment income, other income, deductions, or credits won’t qualify for the TurboTax Free edition.
Related: Best free tax software this year
What's New In 2025?
TurboTax 2025 is available before the end of 2024, so you can get a jump start on your tax filing. While you can start working on your taxes early, the IRS doesn’t accept returns until late January. Because of last-minute changes from the IRS, it may be best to hold off until the IRS begins accepting returns to start doing your taxes. (I’ve encountered an issue with that myself when I started my taxes early.)
Standout Reasons To Choose TurboTax
TurboTax remains our top choice for ease of use. The ability to import tax data from banks and investment companies is a standout feature. TurboTax is our top choice for those with more complex tax situations, such as active investors and some self-employed business owners.
Last year, TurboTax eliminated TurboTax Self-Employed from their online edition, moving self-employed taxes to the TurboTax Premium tier.
Pricing Complications
Pricing is complicated, and you may not understand what you’ll pay until you finish preparing your return and are ready to file. While that’s not a huge deal for those with just a few tax forms, people who spend an hour or more adding their tax details will likely find that a big hassle.
Rather than promote the DIY product as the flagship, TurboTax works hard to push users into the TurboTax Live products, where you pay more for live assistance or for someone else to handle your taxes completely. These options are convenient but costly.
If you opt for Live Full Service, costs can increase quickly. If you click the “Estimate Your Price” link, you’ll see the option to check different boxes for each form you need. The price goes up as you add more to your return.
We strongly believe in clear, transparent pricing and helping people like you find the best value for their money. As competitors have raced to catch up to the user experience at TurboTax, we’ve seen the value of paying more for an easier experience erode.
The biggest changes to look out for when preparing your 2024 taxes (in early 2025) come from the IRS. Those include common changes such as:
- The standard deduction and tax brackets are updated for inflation.
- New limits for retirement account contributions.
- Form 1099-K limit updates for online sellers.
In our experience, TurboTax remains the easiest place to do your taxes online, and you will find nearly every tax situation covered. If you’re willing to pay a premium price, it’s still a good choice for doing your taxes yourself online.
You can see all our picks for Best Tax Software here.
Related: See our tax refund calendar for 2025.
Does TurboTax Make Tax Filing Easy In 2025?
TurboTax is the leader in easy-to-use tax software. It offers hundreds of integrations designed for every kind of filer. In many cases, you can connect directly with your bank, brokerage account, and even some cryptocurrency accounts to automatically download tax forms and data for those accounts.
Rideshare drivers can connect their app to TurboTax to download income data for their taxes. Depending on your employer, you can look up and download your W-2 information without typing in any financial data. When you have a PDF version of a tax form, you can typically upload it into TurboTax, and the app will automatically add information from the form where needed.
The things TurboTax doesn’t automate are kept simple with clear guides for nearly every tax form and supported tax scenario. The software uses easy-to-understand questions to guide users through complex filing rules. With robust examples, plenty of information pop-ups, and a quick-search system, users are likely to get through filing without much confusion, even if they don’t have an accounting background.
And if you do need help, you have two choices - ask an expert or have an expert do your taxes.
TurboTax Assistance Options. Screenshot by The College Investor.
TurboTax Top Features
TurboTax is perhaps the easiest, most robust tax filing software today. Its user experience is second to none. Here are some of its top features.
Question And Answer Guidance
TurboTax uses a simple question-and-answer model to guide users through the software. The questions are phrased so users don’t get overwhelmed when answering. If you get stuck or don’t know what something means, you can click a pop-up to get more information or search for the term or form from the top navigation bar.
TurboTax Expert Advice. Screenshot by The College Investor.
Live Tax Assistance
TurboTax has two upgrade options to connect filers with a certified tax expert. TurboTax Live users can have their questions answered by tax experts, ensuring accurate returns. This can be a nice feature for people who think they have taxes under control initially but later find out they’re in over their heads.
If you’re midway through your taxes and decide you want or need help, you can upgrade anytime by accessing tax support for your questions or having a tax pro take care of your entire tax return.
For a higher cost, you can upgrade to Live Full Service, where a tax expert enters all of your tax details based on the information you provide.
Tax Form Integrations
TurboTax has hundreds of official integration partners. When you get a W-2, 1099, or 1098 from these partners, TurboTax can connect and download information from the employer or financial institution. These integrations can speed up the time it takes to complete your tax return and prevent manual error if you make a typo.
In addition to these integrations, TurboTax connects to QuickBooks, Uber, Lyft, Square, and other sources to simplify self-employed filing. When direct connections are not supported, you can usually upload a PDF version of your tax form for TurboTax to process.
Cryptocurrency Support
TurboTax is the first leading tax software to partner with cryptocurrency exchanges and crypto accounting software programs. Coinbase users can directly import transactions from their accounts. People who use other exchanges or independently managed cryptocurrency wallets can prepare their taxes with cryptocurrency tax software and import the forms and reports to TurboTax.
You could easily have hundreds or thousands of transactions yearly if you trade, invest, or transact with cryptocurrencies. Manually entering that would be tedious and extremely time-consuming. Depending on the cryptocurrency account software you use, you may connect to TurboTax directly or have to download and import a spreadsheet, such as a CSV, XLS, or XLSX file.
Related: How Taxes On Cryptocurrencies Like Bitcoin Work
Less Jargon
TurboTax simplifies tax filing by avoiding unnecessary tax jargon. Info bubbles and explainers make it easy for anyone to use more “complex” features, such as depreciation or expense calculators. Real estate investors, small business owners, and side hustlers can likely navigate their tax returns without a professional.
Tax Calculators
TurboTax offers excellent calculators for retirement contributions that flag issues when filers accidentally over-contribute to retirement accounts and help you resolve the problem without extra penalties if possible. You can also use TurboTax to calculate depreciation expenses, where applicable.
TurboTax Drawbacks
TurboTax offers excellent tax software designed to make filing easy for nearly everyone. With TurboTax, even filers with complex situations should be able to file independently. However, this software comes with drawbacks, notably related to cost.
It Can Be Expensive
TurboTax is the most expensive mainstream consumer tax software. Users who appreciate TurboTax’s features and integrations may decide the software is worth the added price. Knowing which tier you need can be difficult if you're an inexperienced filer.
There are many stories of people who thought they qualified for the TurboTax Free Edition but ended up paying a lot to file their taxes. Someone in my family clicked a button to ask for help without realizing they were upgrading to Live Assisted at an extra cost. The FTC even issued a warning about this last year.
Some people may find suitable tax software from a competitor at a lower price. While it may not be as sleek and easy to use, significant savings could make changing to a lower-cost option worthwhile.
Limited Free Filing
TurboTax’s Free Edition offers free tax filing to people with W-2 and Social Security income. TurboTax estimates that about 37% of taxpayers qualify for TurboTax Free Edition, which only supports Form 1040 and limited credits.
Those with HSAs and deductible childcare expenses won’t qualify for TurboTax's Free Edition. Also, something very important to note: if you start through the IRS Free File portal, you can’t upgrade to a paid version, so be careful where you sign up and start working on your taxes. If you might have to upgrade, it’s best to sign up directly through TurboTax.com.
Added Fees For Audit Support
Audit support is included with the TurboTax Free Edition. However, users who to use the Deluxe level or higher will need to pay for MAX support for audit assistance, which costs an extra $60. This upgrade alone costs more than the price of the FreeTaxUSA software, which includes audit support and about three times as much as H&R Block's tax software audit support upgrade.
TurboTax Pricing And Plans
TurboTax significantly changed its product pricing and plans significantly over the last few years. They switched from focusing on different tiers for DIY taxes to tiers focused on the level of live assistance you choose.
TurboTax offers three levels of tax filing. You can choose to do your own taxes, get expert assistance while you file (Live Assisted), and have an expert file your taxes for you (Live Full Service). You'll pay more for higher levels of assistance.
TurboTax Pricing Plans. Screenshot By The College Investor.
TurboTax doesn't display exact prices on its website. Instead, it shows price ranges for each service tier. To get a more precise estimate of the price you will pay, you can select various buttons above the pricing table on the TurboTax website, as per the image below. The prices will adjust in real time as you select the buttons that pertain to your situation.
We find this to be a disappointing change from previous years. Users should have clear, up-front pricing on each level of service without having to understand all the nuances of the service and their taxes ahead of time.
Our team spent over two hours figuring out the pricing tiers after last year's changes. The result is that we still have to leave you with ranges in our review and say that tax pricing "starts at $X" because it can vary so much and is not intuitive to figure out (and the company is called Intuit!).
As a result, we reduced our review scores for TurboTax's pricing.
Service | TurboTax | Live Assisted | Live Full Service |
|---|---|---|---|
Best For | Do Your Own Taxes | Experts help as you do your taxes | We do your taxes for you |
Federal Returns | *$0-$129 | $89 - $219 | Starts at $129 (price may vary) |
State Returns | *$0 or $64 per state | $0 or $69 per state | $69 per state |
| START HERE | START HERE | START HERE |
* ~37% of taxpayers will qualify for the TurboTax Free Edition. The free tier can be used by those with W-2 or Social Security Income, but it only supports From 1040 and limited credits.
Note: TurboTax tends to adjust prices throughout the tax season, with discounts available at certain points of the year. December and January are generally the best times to lock in low rates. The steepest discounts tend to disappear by March. Filers who wait until April typically pay the most.
How Does TurboTax Compare?
TurboTax is a leader in usability and functionality, but the superior experience comes with a premium price tag. The TurboTax Free Edition tier includes very little, and the next tier clocks in at over $100 when including a state tax return.
In many cases, filers don’t need everything that TurboTax offers. Less expensive solutions like TaxSlayer or FreeTaxUSA often make more sense than TurboTax.
However, TurboTax is still a top choice for crypto traders, stock traders, rental property owners, and small business owners who can benefit from its usability.
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Rating | ||||
Stimulus Credit | Free+ | Free+ | Free+ | Free+ |
Unemployment Income (1099-G) | Deluxe+ | Free+ | Deluxe+ | Classic+ |
Student Loan Interest | Free+ | Free+ | Deluxe+ | Free+ |
Import Last Year's Taxes | Free+ | Free+ | Free+ | Free+ |
Snap A Pic of W-2 | Free+ (other imports also available) | Free+ | Free+ | Not Available |
Multiple States | Up to 5 | Not Free+ | Not advertised | Classic+ |
Multiple W-2s | Free+ | Free+ | Free+ | Free+ |
Earned Income Tax Credit | Free+ | Free+ | Free+ | Free+ |
Child Tax Credit | Free+ | Free+ | Free+ | Classic+ |
Dependent Care Deductions | Deluxe+ | Deluxe+ | Deluxe+ | Classic+ |
HSAs | Deluxe+ | Deluxe+ | Deluxe+ | Classic+ |
Retirement Contributions | Free+ | Free+ | Free+ | Free+ |
Retirement Income (SS, Pension, etc.) | Free+ | Free+ | Free+ | Free+ |
Interest Income | Free+ (Limited Income) | Free+ | Deluxe+ | Classic+ |
Itemize Deductions | Deluxe+ | Deluxe+ | Deluxe+ | Classic+ |
Dividend Income | Free (Limited Income) | Deluxe+ | Deluxe+ | Classic+ |
Capital Gains | Premium | Premium+ | Premier+ | Classic+ |
Rental Income | Premium | Premium+ | Premier+ | Classic+ |
Self-Employment Income | Premium | Premium+ | Self-Employed | Classic+ |
Audit Support | Included with Free, all others must upgrade | Worry-free audit support add-on only | Not Offered | Premium+ |
| Cell | START NOW | READ THE REVIEW | READ THE REVIEW | READ THE REVIEW |
What Support Does It Offer?
TurboTax users can access multiple levels of support. For basic software-related questions, you can select the ‘Help’ icon from the software menu to open the "TurboTax Assistant." From there, you can ask questions and find relevant help articles.
“Live Assistance” from enrolled agents or CPAs is available for a higher fee. TurboTax Live gives you access to tax professionals for questions beyond the software. If you have questions about your tax situation, this is the plan you would need if you can’t solve them yourself.
If you want an expert to handle everything from beginning to end, you can now choose TurboTax Live Full Service and hand off your tax documents to one of TurboTax's professional tax preparers.
Is It Safe And Secure?
TurboTax is a leading software company focusing heavily on data privacy and security. It encrypts all customer information at rest and requires multi-factor authentication.
Although TurboTax employs industry-standard security measures, it's still highly targeted by hackers seeking personal and financial information. The company updated its security measures in response to a vulnerability exposed in a January 2021 cyber attack.
Where To Buy TurboTax
We recommend you use the online version of TurboTax tax software rather than using a disk and installing it on your computer. Your data is usually safer online in a secure cloud managed by TurboTax owner Intuit. Online tax information is always saved as you go. If your computer crashes mid-way through preparing your return, you will retain all your hard work.
TurboTax Online: The easiest way to buy TurboTax is through its website. You can select the plan that works for you, or you can start at any level. You'll be given the option to upgrade if your tax return requires those features. You only pay when you file, so try it risk-free to decide if you like it before you buy.
Amazon: Amazon offers an Amazon Exclusive where you can get a Federal and State return with one Federal e-File included, but it applies only to the downloaded version. Check out the Amazon deal here.
Retail Stores: Many stores will also carry TurboTax for at least a few months of the year, typically from December through April. You can find TurboTax downloads and CDs at Target, Costco, Walmart, Office Depot, Office Max, Staples, and other retailers.
Why Should You Trust Us?
The College Investor team spent years reviewing all of the top tax filing options, and our team has personal experience with the majority of tax software tools. I have been the lead tax software reviewer since 2022, and have compared most of the major companies on the marketplace.
Our editor-in-chief Robert Farrington has been trying and testing tax software tools since 2011 and has tried almost every tax filing product. Furthermore, our team has created reviews and video walk-throughs of all of the major tax preparation companies, which you can find on our YouTube channel.
We’re tax DIYers and want a good deal, just like you. We work hard to offer informed and honest opinions on every product we test.
How Was This Product Tested?
In our original tests, we went through TurboTax and completed a real-life tax return that included W-2 income, self-employment income, rental property income, and investment income. We tried to enter every piece of data and use every feature available. We then compared the result to all the other products we've tested, as well as a tax return prepared by a tax professional.
This year, we went back through and re-checked all the features we originally tested, as well as any new features. We also validated the pricing options and support options, and compared the changes to new offerings by competitors.
Is It Worth It?
TurboTax consistently sets the standard for tax software usability. It's easy to use and motivates you to push through to the end. More importantly, TurboTax’s partnerships and integrations automate large portions of the tax filing process for many users.
TurboTax would be the top choice for nearly all filers if it weren't for the cost and the difficulty of figuring out what you're even going to pay before you’re done entering your tax details. Lower-priced options like TaxSlayer Classic and FreeTaxUSA may be better for those on a budget.
We recommend H&R Block Premium as a solid alternative for side hustlers. The lowest-tier version is more robust than the TurboTax Free Edition.
We recommend TurboTax as the top choice for landlords, cryptocurrency investors, traders, and active stock investors. People with complex tax needs often agree that saving time is worth the extra cost, and TurboTax's integrations definitely save a lot of time.
Get started with TurboTax here >>
Common Questions
Here are some common questions we get about TurboTax every year:
Is TurboTax Free?
The TurboTax Free Edition offers limited, free tax filing. Only ~37% of taxpayers will qualify for TurboTax Free Edition, which only supports Form 1040 and limited credits, so some users may find that they need to upgrade to higher tiers.
Can TurboTax Online help me file my crypto investments?
Yes, TurboTax has a built-in integration with Coinbase that allows a direct import of all transactions from Coinbase. It is also an official partner of CoinLedger (formerly CrypoTrader.tax) and allows imports from sources like CoinTracker.
DoesTurboTax offer refund advance loans?
TurboTax is offering refund advance loans up to $4,000 this year. Refund advance loans are paid into Credit Karma Money checking accounts. Funds are accessible through the Credit Karma Visa® Debit Card or online banking. The loans are 0% interest loans and are repaid automatically as soon as the IRS refunds your money. Virtual cards are available instantly. Physical cards arrive in a week or two.
Does TurboTax offer any deals on refunds?
TurboTax Online software isn’t currently advertising any specific refund deals. However, certain downloadable software packages from Amazon advertise a 3% refund boost when users accept their refund on Amazon Gift Cards.
Is TurboTax Better Than H&R Block?
It depends. We found H&R Block to be better for cost and does a better job than most competitors in terms of usability. TurboTax includes an easier user interface, though, and it can make tax filing easier and faster. Your tax return results should be nearly identical with either.
Features
Federal Cost |
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State Cost per return |
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Audit Support | Included with the TurboTax Free Edition, everyone else has to pay more for Audit Defense |
Tax Extension | Yes (Free) |
Import Tax Returns | Yes, PDFs or tax data files |
Unlimited Amendments | Yes |
Self-Employment Income | Yes, with higher-priced tiers |
Itemize Deductions | Yes, with higher-priced tiers |
Deduct Charitable Donations | Yes, with higher-priced tiers |
Customer Service Options | Help Center, Live Assistance From Tax Pros, Full Service |
Web/Desktop Software | Both available |
Mobile Apps | Yes |
Promotions | Varies |
Editor: Colin Graves
Reviewed by: Robert Farrington
The post TurboTax Review 2025: Pros, Cons, And Alternatives appeared first on The College Investor.
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