Turbo Tax
Turbo Tax Products
Which One Is Right for You?
Tax time is about as fun as going to the dentist, right? Fortunately, there are programs available that help you understand your tax liabilities, make the most of your deductions, and take the stress out of filing your taxes.
Turbo Tax helps millions of people successfully file their taxes. With the Turbo Tax Audit guarantee and step-by-step process no matter which program you choose, it’s easy to see why millions of people use Turbo Tax.
If you’re trying to decide which Turbo Tax Program is right for you, check out our guide below.
Turbo Tax Free Edition
The name says it all. Turbo Tax-Free Edition costs nothing to file your federal or state taxes. It’s as simple as it gets, but it’s only for taxpayers with simple taxes. You must not itemize your deductions and your pay must be straightforward (W-2).
Even though it’s free, you still get the Audit Support Guarantee (TurboTax has your back if you owe a penalty or interest because of a TurboTax error) and 24/7 support.
What it Includes:
The TurboTax Free Edition includes the preparation of your federal and state taxes. You can import your W-2, answer a few questions, and you’re on your way to filing your taxes. Once you input your information and prepare your taxes, you can print and mail or e-file your taxes with Turbo Tax.
The Free Edition includes:
- Use last year’s TurboTax information to make filing this year’s taxes even easier or upload an image or PDF of your returns filed with another program
- Free filing of your federal and state tax returns
- Audit Support Guarantee
- 24/7 online community and professional support
Who Should Use It:
You can only use the Turbo Tax-Free Edition if you meet the following:
- Only W-2 income
- Basic interest or dividend income reported on 1099-INT or 1099-DIV
- Not itemizing deductions
- You can claim the Earned Income Credit and Child Tax Credits
- Unemployment income reported on 1099-G is okay
The Cost
The Turbo Tax-Free Edition is completely free.
Pros
- It’s free
- Turbo Tax makes it simple to file your federal and state taxes
- You have around-the-clock support
Cons
- You can’t itemize deductions
- If you’re unemployed or get paid on as an independent contractor you aren’t eligible
Turbo Tax Deluxe
If your taxes are more complicated than a basic 1040 with no schedules, Turbo Tax Deluxe is the next step up. Whether you’re a homeowner, you make charitable contributions, or you’re paid in ways other than a standard W-2, Turbo Tax Deluxe will help you file your taxes.
What it Includes:
Turbo Tax Deluxe includes everything Turbo Tax-Free Edition includes plus it searches over 350 tax deductions and credits. If you want to decrease your tax liability as much as possible, this is the way to do it. Turbo Tax leaves no stone unturned. They even guarantee your maximum refund. Turbo Tax Deluxe’s primary focus is on mortgage and property tax deductions, ensuring homeowners get the most out of their investment.
Here’s what you get with Turbo Tax Deluxe:
- Help with charitable donation deductions on contributions over $300
- Help with Schedule A, your itemized deductions which may include home mortgage interest, property taxes, charitable contributions, medical and dental expenses, unreimbursed employee expenses, student loan expenses, and casualty losses
- Use last year’s TurboTax information to make filing this year’s taxes even easier or upload an image or PDF of your returns filed with another program
- Audit Support Guarantee
- The option to talk to product specialists either online (video chat) or over the phone
- The ability to make changes for up to 3 years after you file your taxes with Turbo Tax and the IRS accepts them
Who Should Use It:
If you own a home, you’ll need Turbo Tax Deluxe as the moment you have any deductions besides the standard deduction, you’ll outgrow the Turbo Tax-Free Edition. If you meet any of the following, use Turbo Tax Deluxe:
- You make charitable donations
- You own a home and pay mortgage interest and/or property taxes
- You need assistance filing your tax returns
The Cost
The Turbo Tax Deluxe Edition costs $60, but if you use have enough deductions through your mortgage interest, property taxes, or charitable contributions, you may more than make up for the cost with your deductions.
Pros
- Maximize your deductions by looking at over 350 opportunities
- Turbo Tax makes it easy to understand the different deductions and it makes the calculations for you after you answer simple questions to determine if you qualify
- You can easily file an amended return for 3 years if necessary
Cons
- It costs extra to file your state taxes
- The product support is a bit basic; if you need something more robust, you’ll need to upgrade to Turbo Tax Live for an extra fee
Turbo Tax Premier
If you’re an investor, Turbo Tax Premier offers the support needed to file your taxes correctly while maximizing your refund. Whether you’re a day trader trading stocks, bonds, crypto, or ETFs or you invest in real estate, Turbo Tax Premier imports your transactions automatically and helps you sort through your income reporting and allowed deductions.
What it Includes:
Turbo Tax Premier includes everything in Turbo Tax Deluxe plus helps investors make the most of their income and write-offs to maximize profits. If you work with one of the thousands of financial institutions and brokers Turbo Tax partners with, you can automatically upload your information to Turbo Tax, no manual input required.
Like with Turbo Tax Deluxe, the Premier edition looks over all aspects of your income and expenses to ensure you get every deduction allowed.
Here’s what you get with Turbo Tax Premier:
- Use last year’s TurboTax information to make filing this year’s taxes even easier or upload an image or PDF of your returns filed with another program
- Write off charitable donations exceeding $300
- Help to itemize deductions by asking questions about homeownership, charitable contributions, medical and dental expenses, unreimbursed employee expenses, student loan expenses, and casualty losses
- Audit Support Guarantee
- The ability to talk to product specialists either online (video chat) or over the phone
- The option to make changes for 3 years after you file your taxes with Turbo Tax and the IRS accepts them if something changes or you missed something
- Automatically upload your investment and tax data from thousands of partner institutions
- Searches over 400 possible tax deductions to help you get every deduction that you’re eligible to receive
- Receive personalized tips and suggestions after answering basic questions about your financial situation to make the most of your tax deductions
Who Should Use It:
If you invest, you need Turbo Tax Premier. Whether you love the stock market or you’re building a real estate investment portfolio, Turbo Tax Premier will help you make the most of every dollar with their largest refund guarantee.
The Cost
Turbo Tax Premier costs $90 to file your federal taxes. Since you’re dealing with investments, potential losses, and looking over 400+ deductions, you’ll likely make the cost back using Turbo Tax to ensure you get every dollar you’re owed.
Pros
- Maximize your deductions by going over 400+ deduction opportunities
- Turbo Tax offers personalized suggestions without talking to you; they make it easy by answering simple questions that make even complex tax situations seem simple
- Makes heads or tails out of your investment gains and losses so you report your income correctly while maximizing your deductions
Cons
- It costs extra to file your state taxes
- It can get complicated to file taxes as an investor, even with Turbo Tax’s unique guidance, so you may end up paying for Turbo Tax Live for even more help
Turbo Tax Self-Employed
If you’re self-employed, Turbo Tax Self-Employed offers the support you need to file your own taxes but still get the support you need for a complicated situation. Turbo Tax considers you self-employed if you’re an independent contractor, freelancer, consultant, entrepreneur, small business owner, or gig worker (i.e. Uber driver).
Turbo Tax Self-Employed works with your situation, asking many detailed questions to get to know your industry and situation to ensure that you report every income dollar correctly, but still, get every deduction you’re entitled to as a self-employed taxpayer.
What it Includes:
Turbo Tax Self-Employed includes everything in Turbo Tax Premier but focuses on your line of self-employment ensuring you get every dollar that’s owed to you. Turbo Tax Self-Employed is like another set of eyes looking not only for deductions in your personal life (mortgage interest, charitable deductions, etc.) but also your business life, an area many taxpayers aren’t aware they may be eligible for more deductions.
Here’s what you get with Turbo Tax Self-Employed:
- Use last year’s TurboTax information to make filing this year’s taxes even easier or upload an image or PDF of your returns filed with another program
- Maximize your deductions from any charitable donations exceeding $300
- Assistance filing Schedule A to cover your itemized deductions including home mortgage interest, property taxes, charitable contributions, deductible medical and dental expenses, unreimbursed employee expenses, deductible student loan expenses, and allowed casualty loss expenses
- Audit Support Guarantee
- The ability to talk to product specialists either online (video chat) or over the phone
- The option to make changes for 3 years after you file your taxes with Turbo Tax and the IRS accepts them if something changes or you missed something
- Automatically upload your investment and tax data from thousands of partner institutions
- Searches over 400 possible tax deductions to help you get every deduction that you’re eligible to receive
- Receive personalized tips and suggestions after answering basic questions about your financial situation to make the most of your tax deductions
- Search for specific deductions pertaining to your industry
- Specializes in the gig economy and freelancing gigs to ensure you get every deduction you’re entitled to
- Guides you through tough decisions, such as claiming standard vs actual mileage or claiming a home office deduction
- Support in filing Schedule C for self-employment tax
Who Should Use It:
If you’re self-employed and want to file your own taxes, Turbo Tax Self-Employed provides the guidance needed to do it. It walks you through step-by-step so you understand all aspects of your income and deductions, allowing you to maximize your deductions with the Turbo Tax guarantee.
The Cost
Turbo Tax Self-Employed is the most expensive plan at $120, but it also has your back when filing your own taxes as a business owner. There’s a lot more at stake as a business owner and Turbo Tax has your back.
Pros
- Guides you through claiming every bit of income and expenses so you get the deductions you deserve while following the tax law
- Offers support for any investments whether stocks and bonds or real estate investments along with your business income so you maximize every dollar
- Asks guided questions so you leave no stone unturned when determining what deductions you’re eligible for or helping you make important decisions regarding your tax write-offs
Cons
- It costs extra to file your state taxes
- It can be scary to file your own taxes as a business owner, and upgrading to Turbo Tax Live costs more money
Bottom Line
Before you file your taxes, look at your situation. Most people can eliminate the Turbo Tax-Free Edition right away, but if you have a super simple tax situation, it may be the perfect answer for you. If you have any deductions besides the standard deduction, though, you’ll need one of the three top-tier programs.
Think about your income, finances, and what you want out of your tax program. If you’re self-employed, you’ll go straight to Turbo Tax Self-Employed. If you work for someone, you can choose between Turbo Tax Deluxe and Premier, but you can’t go wrong with either of them.
Use Turbo Tax to its full advantage and you’ll get the maximum deductions and the guarantee that Turbo Tax has your back.