TurboTax offers a range of online tax preparation products tailored to meet the diverse needs of taxpayers. Choosing the optimal version depends on your specific tax situation and preferences. To assist you in making an informed decision, we will delve into the key features and target audience of each TurboTax online product.
TurboTax Free Edition
Best for: Simple tax returns with limited credits
Key Features:
- Free federal and state tax filing
- Basic tax preparation tools
- Eligibility for roughly 37% of taxpayers with Form 1040 returns and limited credits
TurboTax Live Assisted Basic
Best for: Students and simple tax returns
Key Features:
- Live assistance from a tax expert
- Unlimited Q&A support
- Review of your tax return before filing
- Starting at $89 federal; $59 state
TurboTax Deluxe
Best for: Maximizing tax deductions and credits
Key Features:
- Comprehensive tax preparation tools
- Step-by-step guidance and expert advice
- Itemized deduction optimization
- Starting at $139 federal; $69 state
TurboTax Premium
Best for: Crypto, investing, real estate income, self-employed
Key Features:
- Advanced tax preparation tools for complex situations
- Expert guidance on investments, rental properties, and self-employment
- Audit protection and support
- Starting at $219 federal; $69 per state
TurboTax Live Full Service
Best for: Comprehensive tax preparation and expert advice
Key Features:
- Dedicated tax expert prepares and signs your return
- Unlimited expert Q&A support
- 100% accuracy guarantee
- Starting at $129 federal; $69 per state
Choosing the Right Version
To select the most suitable TurboTax version for your needs, consider the following factors:
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Tax Complexity: If your tax situation is straightforward, with minimal deductions or credits, TurboTax Free Edition or Live Assisted Basic may suffice. For more complex returns involving itemized deductions, investments, or self-employment, Deluxe or Premium versions offer advanced tools and expert guidance.
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Need for Expert Assistance: If you prefer professional guidance throughout the tax preparation process, TurboTax Live Assisted Basic or Live Full Service provide live support from tax experts. These options are particularly beneficial for first-time filers, those with complex tax situations, or those seeking peace of mind.
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Budget: TurboTax products range in price depending on the features and level of support offered. Determine your budget and select the version that aligns with your financial constraints.
Additional Considerations
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State Filing Fees: State filing fees are typically additional and vary by state.
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Refund Advance: TurboTax offers a Refund Advance option that allows you to access a portion of your refund before your return is processed. However, this service comes with additional fees.
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Discounts and Promotions: TurboTax frequently offers discounts and promotions, so be sure to check for any available savings before making a purchase.
Choosing the right TurboTax version is crucial for an efficient and accurate tax preparation experience. By carefully evaluating your tax situation, preferences, and budget, you can select the product that best meets your needs. Whether you opt for the free and simple Free Edition or the comprehensive Live Full Service, TurboTax offers a range of options to cater to every taxpayer.
Which Version of TurboTax 2022 Should You Get?
FAQ
How do I know which TurboTax to get?
What is the difference between different versions of TurboTax?
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Feature
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TurboTax Deluxe
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TurboTax Premier
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Price
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From $39 (state additional)
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From $89 (state additional)
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W-2 Income
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Yes
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Yes
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Unemployment income
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Yes
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Yes
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Deduction maximizer
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Yes
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Yes
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Should I do basic or deluxe TurboTax?
What is difference between Deluxe and Premier TurboTax?
Is TurboTax free edition a good option?
The deadline for filing through TurboTax Free Edition is March 31, 2023. For simple tax returns only, not all tax payers qualify. TurboTax Deluxe includes all the features of TurboTax Free Edition, plus a few extras. It’s a good option for homeowners.
Is TurboTax a good tax software?
TurboTax is one of the more expensive tax software available, but for good reason. It is the gold standard when it comes to online tax prep and has all the features you could need in an easy-to-use package. The TurboTax versions available are based on how much assistance you’ll receive.
Where can I find deals on TurboTax software?
CBS Essentials has found deals on TurboTax software at Amazon that you can shop right now. Keep scrolling to find deals on TurboTax software. This free version of TurboTax is a great option for taxpayers whose income is largely from W-2s and savings in the bank. The tax software includes a free filing of your simple federal and state tax returns.
Do all taxpayers qualify for TurboTax?
Not all taxpayers qualify.) In 2020, more than 195 million tax returns and other tax forms were filed electronically; 14 million of those tax returns were filed with a version of TurboTax. The tax software aims to simplify the tax filing process and find customers big tax breaks they otherwise would’t find on their own.