TurboTax Review 2025: The Pros, Cons and What You Need to Know

When Tax Day comes around each year, for most of us, it’s met with a grumble and a sigh. 

It usually starts with merely making a list of questions to answer before you can even get started. What documents do you need? How do you determine whether the rules have changed from last year? And, of course, which digital DIY tax filing service should you use? 

We’ve been there. But tax filing services like TurboTax, H&R Block and TaxSlayer can help  guide you through the process — sometimes for free. It’s worth evaluating your options to see what might work for you.

In this article, we review TurboTax’s online filing services and tax software and see how it compares to the competition.

TurboTax: How Does It Work?

Perhaps the best known of the digital filing options, TurboTax is the tax-focused baby of Intuit, the same company behind Quickbooks.

TurboTax is a great option for those who want everything from a full-service expert doing their taxes — thanks to TurboTax Live Full Service’s guaranteed results — to someone who wants to use the guided software to input information on their own. 

The service offers a free option. So you’ll pay nothing if you’re filing a simple tax return, which means using only the IRS Form 1040. About 37% of taxpayers are eligible for this option, per TurboTax.

Is this all sounding a little too technical or overwhelming? You may want to invest instead in the TurboTax CD/download, which allows you to install the software on your computer. The cost of the Deluxe (and more) CD includes the tax preparation fee for one state and five federal e-filings. 

As you can see, TurboTax offers much to choose from. It has three main pricing tiers as of January 2025, if you choose the online service rather than the downloadable software, and four main pricing tiers for the desktop service. Here’s a little more about how much they cost and what they offer.

TurboTax: File Your Own Taxes

The idea of free tax filing software sounds too good to be true, and that’s because sometimes it is. Still, more than 10 million customers used the free filing service last year, per the company, a decrease of one million from the year before, so it is possible. 

The TurboTax Free Edition is great for those who only need to cover W-2 income, the Earned Income Tax Credit (EIC) and child tax credits. You can also include interest or dividends that don’t require filing a Schedule B as well as the student loan interest deduction and the IRS standard deduction. TurboTax estimates about 37% of tax payers are eligible.

Anything more than that, like itemized deductions on Schedule A, stock sales or rental property income, will likely make you not qualify for the free service. 

Before you start, look at the various deductions you plan to take and income you have to report. That way, you won’t be surprised into buying a more expensive version of TurboTax halfway through.

Cost: $0-$89

TurboTax Live Assisted

If your taxes might require a little extra help, more than just the simple file, then you’ll want to shell out for TurboTax Live Assisted. Instead of doing your taxes on your own, you’ll have access to a live tax expert with an average of 12 years of experience, per TurboTax. At the end, included in the cost of your filing, you will have an expert final review guaranteed at 100% accuracy. You’ll also have access to the AI-powered Intuit Assist for any of your last-minute questions.

The key difference between Live Assisted and Live Full Service, the final tier, is you will not have consistent access to an assigned tax expert throughout the entire process. Instead, there will be a wide array of tax experts who can answer your questions but won’t review your same case from start to finish. In Live Assisted, you won’t be able to choose the tax expert you work with, but you will have access to an expert through phone, chat or live on-screen through one-way video chat. 

Prices range from $39-$159 based on the complexity of your tax return. There is also the option to add on other services, like an Audit Defense, which ensures you will have representation in the event that your return is audited. 

Cost: Ranges from $39-$159

Full Service

If you’re someone who wants the white-glove treatment and to be sure everything is correct, then perhaps TurboTax’s Full Service is the right option for you. 

Full Service experts are a different category of TurboTax employees. They will file your taxes for you virtually rather than Verified Pros, who are defined as “independent tax professionals who are vetted by TurboTax.” Full Service experts work for you, so they will tell you their availability. But if you need access to an expert and your designated expert is not available, you’ll still be able to reach other experts seven days a week from 5 a.m. to 9 p.m. PT until the April 15 filing deadline, per TurboTax.

You’ll be matched with your expert based on your tax situation and location — you may even be able to choose your specific professional. TurboTax won’t give you a specific timeframe for completion, but they do ensure that their goal is to “get your taxes done with as little waiting as possible.” One of the benefits of Full Service is that you can work with the same tax expert year after year. Your expert is also on hand to answer your questions even after tax season is over. 

Although TurboTax’s Lifetime Guarantee does promise audit support for the full seven-year life of your tax return, you will have to pay extra if you want an assigned Audit Representative to your case. 

Cost: Starting at $89

TurboTax Desktop

Basic

If you want downloadable software on your computer from TurboTax for the cheapest price but you still want step-by-step guidance, Basic is the product for you. Unlike the other levels, it does not include a state e-file download. But it does allow you to transfer information from last year, claim tax credits and import your W-2 information. You’ll also have access to TurboTax technical support. 

Cost: $40 for five federal e-files; state download sold separately 

Deluxe 

The Deluxe edition is the right choice for the person who doesn’t want to shell out that much more but wants help finding all the possible tax credits for them. 

This version helps you search more than 350 tax deductions and credits to find the ones that are a fit for you. That includes homeowner tax breaks, charitable donations plus mortgage and property tax deductions. If you have education tax credits or tax credits for dependents, you might want to go ahead and invest in Deluxe. This is also helpful when it comes to 1099-MISC income — i.e. earnings of an independent contractor like a freelance writer or Uber driver. 

But if freelance work is your sole source of income, you’ll be better off using the TurboTax Home & Business, which is recommended for personal and self-employed taxes and is described below. 

Cost: $70 for five federal e-files and one state download

Premier

If you’re someone who has additional income from investments and rental property, then you may want to upgrade to the Premier version of TurboTax. You’ll get everything in Deluxe, as well as the ability to automatically import investment information from financial institutions, including stock and crypto activity, as well as look at your retirement accounts and determine how to maximize your retirement amount. 

If you own property, TurboTax will simplify rental property depreciation and offer advice on how to set up new rental properties in the future. Once you’re done, the system will also guide you on how to save more tax-wise for your next filing for the following tax year. 

Cost: $105 for five federal e-files and one state download

Home & Business

If the bulk of your income comes from a self-employed post, then you may want to consider TurboTax Home & Business. It works for industry-specific deductions and offers guidance for freelancers, independent contractors and small business owners, including on vehicle deductions and phone, supplies and utilities deductions.

TurboTax guarantees your maximum tax refund. 

Cost: $120 for five federal e-files and one state download

Features

No matter which tier works best for you — and there’s an easy, clickable questionnaire that helps you figure out the right product based on your tax situation — all TurboTax customers get access to a wide range of tools, guarantees and features.

Audit Support Guarantee

Say you’ve done your taxes through TurboTax, whether individually or with a professional, and you end up receiving an audit letter from the U.S. Internal Revenue Service. Here’s where the system’s Audit Support Guarantee comes in. 

TurboTax offers one-on-one question-and-answer support with a tax professional through its Audit Support Center, if requested. This applies for returns filed up until tax year 2019.  TurboTax has now updated its service to offer a paid option of Audit Defense, which offers you more protection for a price ranging from $40 to $60, if you have the Desktop product. This offers you full audit representation by a licensed tax professional, including in front of the IRS.

Money-Back Maximum Refund Guarantee

TurboTax promises you the maximum tax refund. That means that if you find a bigger refund or smaller overall tax payment from another method, it will refund you the federal or state purchase price you paid for access to its programs. (Free users can get up to $30.) This is true for the lifetime of the tax return, defined as seven years from the date in which it was filed through TurboTax.

Mobile Apps for Apple and Android

If you’re someone who likes to do things on the go, you can even file your taxes through an app. TurboTax has options for both Apple and Android users.

Refund Advance

One of TurboTax’s most unusual features may be the refund advance option of up to $4,000 with no loan fees, no credit impact and 0% APR. A few eligibility barriers apply: you’ll have to have a refund of at least $500 and can’t live in North Carolina, Connecticut or Illinois, for example. 

But if you can apply, you could get the funds in as fast as a minute after the IRS accepts your tax return. You’ll have to get them by opening a checking account with Credit Karma Money, also owned by Intuit, and can, once accepted, almost immediately use your Credit Karma Money virtual debit card loaded up with the funds from your return. A physical card should arrive within seven to 14 days. It’s important to note you won’t get your full refund — TurboTax refunds in amounts starting at $250 in increments of $250 and then eventually by $500 from $1,000 onward. 

Once the IRS distributes the rest of your return, you’ll receive the rest of the money into the Credit Karma Money checking account you’ve already opened. (They will withhold the cost of any TurboTax service fees.)

Pay-With-My-Refund Options

If you anticipate having a high refund and want to pay for TurboTax with your refund instead of your bank account, that can be done. This service often comes with a $40 processing fee. To do this, you’ll have to e-file your federal return and direct deposit your refund into a single account. It can only be used once.

Fees

Here’s how TurboTax fees look at a glance:

• Online filing, from DIY to TurboTax Full Service: Free to at least $159, depending on tier

• Desktop software, from Basic to Home & Business: $40 to $120

If you owe taxes after you file, you can pay with credit card or debit card through payment processors recommended by TurboTax. This generally comes with a fee between $2 and $4 per transaction for a debit card and a percentage-based fee for a credit card. 

You can also use an electronic funds withdrawal to pay directly from your bank account — that is, if you’re e-filing your taxes and using tax preparation software, a tax professional or IRS Free File. You may have to pay a small fee to your banking institution.

TurboTax: Pros and Cons

Now that we’ve laid out the basics of TurboTax’s features, what’s the verdict on its performance? Like all financial products and services, there are both pros and cons to using TurboTax.

Who Is TurboTax Best For?

When it comes right down to it, most online tax preparation services are more alike than they are different.

TurboTax may be best for someone who wants custom tax help without going into an office and dealing with a live person. It’s also a good option if you’re looking for a truly fee-free line of advance tax credit so you can access your money ASAP.

Remember, you can always file for free, if you’re eligible, through the IRS portal. This service is available to filers who earned an adjusted gross income of $84,000 or less (in 2024), and the page also links to free fillable forms for earners at all levels.

Still comparison shopping? Check out our reviews of H&R Block and TaxAct before you make a decision.

Writer Elizabeth Djinis is a contributor to The Penny Hoarder, often writing about selling goods online through social platforms. Her work has appeared in Teen Vogue, Smithsonian Magazine and the Tampa Bay Times.

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