How much will it cost you to use TurboTax?

Money, Money, Money
Like most people, I like free stuff.  So I figured I would check out the free offer over at TurboTax.

This software is only free if your taxes are simple (no business income, no itemized deductions, and you don’t need step-by-step instructions) and you owe no state income tax.  Otherwise, you will need to pay for additional features.

The prices for the four different paid versions of TurboTax are shown here.  State filing is an additional $36.95.  This means that TurboTax Deluxe Online with state filing will set you back $66.90.  If you have a home business, you might have to use TurboTax Premier ($74.95).  Add in the state filing, and you’re up to $111.85.

I just saw TurboTax Deluxe over at Target (yes, I still use brick-and-mortar stores) where it was on sale for $49.99.  However, there was a $19.95 fee for state e-filing.  Figure in our local sales tax, and it will cost you $73.97.

There is another free version of TurboTax (“Freedom Project”) over here.  This one includes certain states but not others.  You must have under $31,000 adjusted gross income to take advantage of the Freedom Project, unless you are on active military duty ($57,000 limit) or qualify for the Earned Income Tax Credit.

This is a good place to warn you that if you have a complex tax situation (partnerships, S-corporations, office at home, trusts, etc.), you would probably be best off using a professional preparer.  A professional preparer will better know how to minimize your taxes, and can better avoid errors.  Alternatively, you need to study and learn the federal and state rules in detail.

I haven’t done my own taxes yet (I will be using TurboTax), but I wouldn’t be surprised if a few more fees pop up along the way.

The IRS lists more free options here.  Caveat emptor.

[Image: Money, Money, Money by borman818, on Flickr]

17 thoughts on “How much will it cost you to use TurboTax?

  1. Prof. Holtzman,

    Thank you for this awesome post!!! Wish I investigated it before I did my taxes. I did it by myself for the first time, and end up having to pay $124.00, when everybody says “I just pay 39.99. I got so worried that I decided to google, and investigate it myself. So, now I know… that’s the price sometimes we pay to learn something, and I did my first tax myself.

    Sincerely,

  2. I used turbo tax again this year and havent had any problems until this time. I bought the deluxe package and the state …got a deal of @29.99 for federal and then state was 36.99 …so all is going well til I see the deposit and its less than what we thought …I contact intuit and they say there is an efile charge ..a filing fee …I havent to my memory encountered this before …I thought the efiling came with the package?

  3. I used turbo tax for several years but the price keeps going up and up. Crazy price for a cd they are pricing a lot of people like me on a fixed income to do something else.

  4. Don’t buy turbotax. I have an LLC. I also do my mom’s taxes. I had to pay twice, for two states, for mom’s taxes and I had to pay to efile three states.

    The software is buggy and there is no tech support. I was not able to unclick that my mom paid adoption expenses even though I was on the page. I did not select this item in the first place.

    The software does not like adding items out of sequence. Don’t jump around.

    This software is more expensive and less functional every year. I will not be able to comment on it next year. I can’t believe that they are in business.

  5. TurboTax is about 20-30% cheaper than hiring a tax professional even with the added fees. Don’t believe me? Then go to a professional and check for your self. My total was $71.22 and I owed state, had itemized deductions, and medical expenses to report, along with property taxes, registration fees, and mortgage interest. Though their fees have increased, so have the rates of the PROS. Its called inflation.

    • Turbotax is good, and I use it for my own taxes. However, I can tell you that there is a huge difference between using a professional and TurboTax. Anyone with a business or higher net worth will save a lot of money in the long term by using a professional. And by “professional” I do not mean a storefront national chain.

      Mark

  6. I’ve been using TurboTax since 2007 and have managed to buy the software for $40 each year and paid $19.99 each year to file my state. I buy it from Amazon and have experienced no rate increases whatsoever. It’s great. And I itemize as well. Of course, I have nothing complicated to report or file, as I’m just an “average Joe” trying to make ends meet.

  7. Yeah I made the rookie mistake and thought it would be free to file. Never told that if I have money coming back from state that’s a fee too so now I’ll be paying around 50 bucks but it’s better than h&r block they were going to charge me $313.27 for there “fees”. Just remember to do your homework on it before you jump into it. It’s about the money for all these companies nothing is actually free

  8. This is the first year that I decided to e-file my state tax return with TurboTax. In addition to the $25 state filing fee, there was a $36 fee for the refund processing service. Let’s see….if I send my return via ‘snail mail’, I’m out a whopping 50 cents. Or….I can pay over $60 to file online and that’s in addition to paying the state $646. When I get too damn lazy to lick a stamp, it will only be because I won the lottery. ‘Refund processing service’ sounds like another one of those ‘fluff’ additional ‘fees’ that your phone and cable companies charge.

    • People pay for it so that they can get their refunds more quickly. But it is much more expensive than it should be!

  9. So this year turbo taxes is different u have to pay now for this. last 2 years it was free I paid for it with my refund. I guess they did a lot of changes.

Leave a comment

Your email address will not be published. Required fields are marked *