Turbotax premier live

TurboTax review: Not the cheapest online tax software, but good for complex situations

Updated

2022-03-24T19:23:57Z

iStock; TurboTax; Gilbert Espinoza/Insider

  • Who should use TurboTax?
  • How much does TurboTax cost?
  • How does TurboTax work?
  • What do you get with TurboTax?
  • Is TurboTax reliable and safe?
  • Are there any downsides to using TurboTax?

Turbotax premier live

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  • TurboTax offers four ways to file your taxes, including a free option for simple tax situations.
  • TurboTax is pricey, but it has a good user experience with the option to upgrade for expert help.
  • Self-employed filers who use QuickBooks will find TurboTax especially valuable.
  • See Personal Finance Insider's picks for the best tax software »

While many people dread tax season, I find it to be an exciting time of year. I get a flurry of forms and documents telling me how much money I made over the course of a year, and I fill in the pieces of the puzzle that summarize an entire year's finances in one place.

Insider's Featured Tax Software

  • Tax Slayer

  • Liberty Tax

  • H&R Block Tax Software

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Editor's Rating

4.6/5

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Editor's Rating

3.7/5

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Editor's Rating

4.5/5

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But unlike my favorite 1,000-piece puzzle, the puzzle of my taxes comes together on my computer. And I don't do it alone. I have used TurboTax for my own taxes several times, and suggest the same to many others.

TurboTax is the biggest and most popular tax-preparation software, handling a solid 30% of electronic filings, according to a report from Moody's.

Here's a look at how TurboTax works, how much it costs, and who it's best for.

For most tax situations, TurboTax does a great job of covering your needs. I'm a self-employed freelance writer with a mortgage, bank interest, investment accounts, and other complexities, but I feel confident doing my taxes myself with TurboTax.

TurboTax isn't the cheapest, but you get what you pay for. That's good customer service, intuitive forms and interfaces, and confidence that you got an accurate tax refund with the maximum cash in your pocket.

However, some people with simple taxes may be satisfied with cheaper options, and some people might just feel more comfortable paying an accountant to do their taxes for them.

How much does TurboTax cost?

TurboTax costs more than other tax-preparation services. Packages beyond the free version can run at least $100 total for a federal and state return.

TurboTax online offers four different ways to file your taxes, depending on your unique tax needs. With all versions except desktop computer software, you can start and enter your information for free. You only pay at the end when filing your federal and state tax returns.

Prices do not include any discounts.

Cost of DIY options and what they cover ...

  • Free Edition: $0. The Free Edition covers W-2 income, unemployment income, retirement distributions, limited 1099 interest and dividends, the earned income tax credit (EITC), and the child tax credit (CTC), but doesn't allow itemizing your deductions. If you want to claim student deductions or credits, this package isn't for you.
  • Deluxe: $59. Intuit advertises this as the most popular version of its software. It includes everything in the free edition plus the option to itemize your taxes and enter mortgage interest. You can also claim student deductions and credits with this package.
  • Premier: $89. Investors, including rental property owners, will want TurboTax Premier. This version even allows you to auto-import your investment data directly from many popular banks and brokerages.
  • Self-Employed: $119. If you own a business, including a side hustle, you'll want TurboTax Self-Employed. It covers credits and deductions related to businesses including rideshare drivers, freelancers, and other small businesses. This includes a free subscription to QuickBooks for expense tracking, or easy integration if you already have an account.

Extra fees will apply if ...

  • You need state filing. If you live in one of the majority of states that require you to do state income taxes as well, you'll have to pay an additional $49 per state. If you lived or worked in more than one state, you may have to pay for multiple state returns.
  • You upgrade to TurboTax Live. For a premium price, you can pay for instant, live access to a tax expert.
  • You opt for TurboTax Live Full Service: For about double the cost of filing yourself, you can hire a tax expert to take care of it all for you. The all-in cost is between $0 and $389 for a federal return.
  • You pay TurboTax from your refund. If you're expecting a tax refund, TurboTax will ask if you want to use part of it to pay for its tax prep services. It sounds more convenient than pulling out a debit or credit card on the spot, but beware: a $39 processing fee applies.

Yes, TurboTax really has a free option for both federal and state returns, and you can use it at any income level. The free version supports W-2 income, retirement account distributions, unemployment income, interest and dividend income, the earned income tax credit, and the child tax credit.

You can even start preparing your return using the free version, and if TurboTax recognizes that you'll need additional forms, it will prompt you to upgrade. Fees aren't due until you file your return, regardless of which package you choose.

All enlisted active duty military and reservists can file for free using any of TurboTax's DIY online packages.

When it comes to cost, TurboTax is slightly more expensive than H&R Block, but its product is about the same. Both offer solid customer service, an easy-to-use interface, and clear instructions and guidance, though there are some variations between packages.

Beyond the free versions, here's how they stack up on cost for the DIY online filing options (not considering any discount offers):

TurboTax packages up the things most people need to file their taxes. While some people with very complex or unique situations may feel more comfortable with the direct assistance of a tax professional, the majority of tax situations are easily covered by TurboTax.

TurboTax offers online and desktop versions of its software, with different prices depending on your tax filing needs. You can also log in and work on your taxes with the TurboTax mobile app for Android and iOS devices.

Like other tax programs, TurboTax is driven by a series of questions and answers about your household, income, and opportunities for deductions and credits. In addition to answering these questions, you'll need to add information from your employer, other income sources, and 1099, 1098, W-2, and other tax forms that may show up in your mailbox or inbox.

TurboTax keeps your information secure with data encryption. It also requires multi-factor authentication every time you log in to verify your identity.

One of the biggest complaints about TurboTax is the ease with which it attempts to upgrade users to the next-tier product. A 2019 investigation by ProPublica found that Intuit, TurboTax's parent company, was deliberately hiding its free filing services from Google and other search engines. As of this writing, TurboTax's free file options are clearly advertised.

TurboTax is a leader in tax preparation services for a reason. Millions of people come back to TurboTax year after year because they can easily and successfully file their tax return. If you follow the directions provided and enter the numbers on your income forms correctly, you should end up with accurate taxes just as if you went to a more expensive professional tax preparer.

Some of TurboTax's product support and customer service lines that are included in the cost of prep for the lower-tier products are not as helpful as they could be. The best way to get specialized help is usually to upgrade to a more expensive TurboTax Live package. 

Overall, TurboTax is the most expensive way to prepare your tax return online, unless you qualify for the free option. While the platform's features justify the cost for some people, it's not the best choice if saving money on tax prep is your priority.

  • Eric Rosenberg

    Freelance Writer

    Eric Rosenberg is a finance, travel, and technology writer in Ventura, California. He is a former bank manager and corporate finance and accounting professional who left his day job in 2016 to take his online side hustle full-time. He has in-depth experience writing about banking, credit cards, investing, and other financial topics, and is an avid travel hacker. When away from the keyboard, Eric enjoys exploring the world, flying small airplanes, discovering new craft beers, and spending time with his wife and little girls. You can connect with him at Personal Profitability or EricRosenberg.com.

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Does TurboTax Premier include live?

TurboTax Help and Support: Access to a TurboTax product specialist is included with TurboTax Deluxe, Premier, Self-Employed, TurboTax Live and TurboTax Live Full Service; not included with Free Edition (but is available as an upgrade).

Can you upgrade TurboTax Premier to live?

Upgrade to TurboTax Live if you started with a different TurboTax product. If you originally selected TurboTax Free Edition, Deluxe, Premier, or Self-Employed, you can add TurboTax Live.

What is included with TurboTax live?

In TurboTax Live with Full Service, you have a dedicated tax expert or CPA to prepare, sign, and file your return for you. You can review everything with your expert before they file knowing that your taxes are done right, backed by our Expert Approved Guarantee.

What are the benefits of TurboTax Premier?

Why use TurboTax Premier?.
Great for stocks, bonds, ESPPs, cryptocurrency, and more..
Covers rental property income and tax deductions..
Easily import your investment income..
Guidance on setting up rental property, depreciation, and more..
One-on-one help, on demand..
Get your maximum tax refund, guaranteed..