In a Nutshell
pros
- Free for simple federal returns
- Step-by-step, user-friendly guidance
- Maximizes deductions and credits
cons
- Not for complex tax situations
- State filing may incur fees
TurboTax Free Edition at a Glance
Pricing
Expert Help
Mobile app
Customer Support
Filing Fees
*~37% of taxpayers qualify. Simple Form 1040 returns only (no schedules except for Earned Income Tax Credit, Child Tax Credit and Student Loan Interest).
TurboTax overview
TurboTax offers up-to-date software, professional tax advisors, and an audit guarantee scheme for every tax return, making it an attractive option for many.
File for free using TurboTax Free Edition. ~37% of taxpayers qualify. Simple Form 1040 returns only (no schedules except for Earned Income Tax Credit, Child Tax Credit and Student Loan Interest).
Once you’ve signed up for this free service, you can complete your return yourself or receive help from TurboTax’s advisors.
As well as e-filing, TurboTax offers its services through CDs or downloadable plans, which enable you to install its software on your device and complete your return if you’re not connected to the internet.
Optional add-ons
After you’ve completed your federal tax return, TurboTax will ask whether you’d like to complete your state tax return through its service. If you choose to do so, its software will transfer the information you’ve entered for your federal tax return into the relevant documents for your state taxes. You may also need to provide additional pieces of information to allow the system to check whether you qualify for further deductions.
How does TurboTax work?
In order to submit your tax return for free, the first step is to provide your email address and some basic information about yourself and your finances. In many cases, you may not need to submit your W-2 or 1099 as TurboTax can import information from more than a million financial institutions and employers.
Based on these initial details, TurboTax will search through more than 350 possible deductions to ensure you receive the maximum possible refund before submitting your return electronically. If you need to amend your return after filing, you can do so via your online account.
Should you receive an audit letter, TurboTax’s support guarantee will offer you guidance from a trained tax professional to help you understand the notice and answer any questions.
Overall, we found TurboTax’s website extremely user-friendly with a clear and accessible explanation of its services.
Is TurboTax reliable and safe?
With the slogan “security is built into everything we do”, TurboTax operates multi-factor authentication on all platforms. This means you’ll need to enter both your password and a one-time code sent to one of your trusted devices to access your account.
The company also promises that all its tax returns are completed correctly and will reimburse any IRS penalties, plus interest, that result from an error on its part.
Help and Support
The level of customer support you receive will depend on the plan you choose.
If you opt for a plan that includes support from TurboTax’s advisors, its Live Help button will allow you to live chat with a tax professional as you fill in your return. Alternatively, you can set up a video call.
In one particularly attractive feature, the company offers access to bilingual advisors who can work with its Spanish-speaking customers.
If you’re not a TurboxTax customer, you can contact the company through its online query form. There is also a detailed selection of FAQs on its website and an active online community that allows you to discuss tax-related issues.
Likewise, there is a blog on its website, which covers a wide range of tax-related topics and is updated on an almost daily basis.
What about the TurboTax app?
Like similar services, TurboTax allows you to access all its services via a mobile app. To protect your security when using the app, you can install Touch ID, which enables you to add fingerprint recognition to your account.
As TurboTax was created by financial software company Intuit, it is compatible with other apps in Intuit’s product suite. For example, Intuit’s TaxCaster app, which operates on the same calculator as TurboTax, can provide you with an estimate of your tax refunds. Likewise, customers can sync their accounts with the ItsDeductible app to keep track of their charitable donations.
Bottom Line
TurboTax offers up-to-date software, professional tax advisors, and an audit guarantee scheme for every tax return, making it an attractive option for many.
Ultimately, determining the value of TurboTax may lie in the level of confidence you have in filing your taxes and whether you’d be willing to pay a little extra for peace of mind.
*~37% of taxpayers qualify. Simple Form 1040 returns only (no schedules except for Earned Income Tax Credit, Child Tax Credit and Student Loan Interest).
