How Does It Cost for Turbotax Expert to Review My Taxes
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- Nuts: TurboTax is the "household proper name" of do-it-yourself revenue enhancement training software, and for skillful reason.
- Pros: The product itself provides an unmatched user experience, a quality app, and the ability to seamlessly handle complex tax situations.
- Cons: TurboTax is expensive and has a addiction of upselling its customers on products and services they may or may not need. Also, its free version is lacking compared to competitor products.
- Inspect Protection
Aye, for an additional fee
- Live Tax Adept Support
Yes, for an additional fee
- Refund Tracking
Yep
- Mobile App
Yes
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Every bit a CPA, I've used countless types of tax return grooming software over the years, so I love excavation into the details whenever a new edition is released as well every bit sharing with my readers my accept on it.
In this article, I am reviewing the TurboTax software for use in preparing 2021 tax returns (due in 2022).
Many of you know that TurboTax is generally viewed as the "cream of the crop" of do-it-yourself tax software — with the price point to evidence it.
And in my opinion TurboTax truly does offering a bit more streamlined taxation render preparation process than its less expensive competitors, but of course it's not without its drawbacks.
In this TurboTax review I will give a general overview of the TurboTax software likewise as the pros and cons of using it so y'all can decide for yourself whether TurboTax is the tax software for you.
TurboTax Review Video + Walkthrough
TurboTax Free Edition
I similar to start my tax software reviews by discussing the gratuitous version of the software since I know that this piece of information is all some of my readers desire to know nearly.
100% Free
The skilful thing about the TurboTax Free Edition is that it's truly free.
Unlike some tax software that gives yous a complimentary federal render only and then makes you pay to file your state render, the TurboTax Gratuitous Edition is free for both your federal and state returns.
TurboTax Live: If you would like a real tax expert to review your "costless" return through TurboTax Live, you volition accept to pay a fee for both federal and state review.
If you would otherwise authorize to have your return prepared for free, this TurboTax Live service is specifically called TurboTax Basic.
But if you qualify for a free return through TurboTax Costless Edition, I'g not really sure if you lot need a professional person to expect over your return because your return is likely quite unproblematic.
Very Simple Returns Only
The but problem is that your taxation return has to be extremely simple for you to qualify to use the Complimentary Edition. And by extremely simple, I mean someone:
- whose only income is reported on a Westward-2,
- who has a small-scale amount of interest and dividends,
- who claims the standard deduction, and
- who may have children.
If your tax situation is more complicated than that, you lot'll need to use i of the paid editions.
TurboTax Costless vs. H&R Cake Free
In fact, the TurboTax Costless Edition is quite limited compared to the H&R Block Gratuitous Online Edition.
Beneath is a table comparing what you get with the TurboTax Free Edition with what you get with H&R Block Free Online.
| Plan: | TurboTax Free Edition | H&R Cake Free Online |
|---|---|---|
| West-2 Income | Yes | Yep |
| Involvement and Dividend Income | Aye, if $one,500 or less | Yes |
| Standard Deduction | Yeah | Yep |
| Earned Income Credit (EIC) | Aye | Yes |
| Child Revenue enhancement Credits | Yes | Yes |
| Unemployment Compensation | Yes | Yep |
| Alimony Income | No | Aye |
| Educator Expenses | No | Aye |
| Educatee Loan Interest Deduction | No | Yeah |
| Childcare Expenses Credit | No | Yes |
| Educational activity Credits | No | Yes |
| Retirement Savings Credit | No | Aye |
As you can see, the H&R Block Free Online Edition provides support for far many tax situations than the TurboTax Free Edition.
TurboTax Paid Editions
If you have any semblance of complexity in your tax state of affairs whatsoever, you'll likely need to pony up for 1 of TurboTax's paid editions, be information technology the Deluxe, Premier, or Self-Employed.
I'll go into the details of each of these plans afterward, just for at present let'southward impact pricing.
TurboTax Pricing
While TurboTax is an excellent product, it definitely comes at a premium.
Y'all'll find that their prices are typically higher than H&R Block and other competitors.
| Plan: | Gratuitous | Deluxe | Premier | Self-Employed |
|---|---|---|---|---|
| Best For: | Simple Tax Returns | Maximizing Deductions and Credits | Investments and Rental Property | Minor Business organization Owners, Including Freelancers |
| Federal Fee: | $0 | | | |
| State Fee: | $0 | | | |
| Total Fees: | $0 | | | |
Next I'll give an overview of each of the TurboTax plans followed by another table, this one showing what's covered and what'southward not in all of them.
TurboTax Deluxe Edition
The Deluxe Edition is the most pop paid TurboTax program since it accommodates taxpayers with a typical middle-form tax situation but doesn't necessarily take all the bells and whistles associated with the more expensive plans.
Among other things, this edition allows you to take the following tax deductions and credits:
- Itemized deductions on Schedule A such as the mortgage interest deduction, holding revenue enhancement deduction, state income taxes deduction, and charitable contributions deduction.
- Adjustments to income such as the pupil loan interest deduction and educator expenses.
- Credits such every bit the Kid and Dependent Care Credit and the Retirement Savings Credit.
TurboTax Live: If yous would like a real tax good to review your Deluxe Edition return through TurboTax Live, your total cost is $119 for your federal return and $49 per state render.
TurboTax and Cocky-Employment Income
Y'all can also written report self-employment income on Schedule C using TurboTax Deluxe Edition, merely there's a catch: y'all tin can't written report expenses. This is truthful for the Premier Edition as well. Maybe this is okay if you just picked upward i or two freelancing assignments during the yr, only if you're truly running a small business with many expenses, I would recommend that you lot pony up and go for the Self-Employed Edition since your taxation deductions will probable put far more cash back into your pocket than the $50 spread between the Palatial Edition and the Self-Employed Edition.
TurboTax Premier Edition
The Premier Edition opens upwards Schedule D and Schedule E, which are used for capital gains and losses (such as stock sales) and rental income and loss, respectively.
In my stance, the cost jump is more than worth it since TurboTax tin can automatically import your stock gains and losses from near major online brokerages.
Also, if you're a landlord, you'll plainly want to go with this option unless yous need the Self-Employed Edition besides.
TurboTax Live: If yous would similar a real tax proficient to review your Premier Edition render through TurboTax Alive, your total cost is $169 for your federal return and $49 per state render.
TurboTax Self-Employed Edition
Finally we have the Self-Employed Edition, which accommodates even the most complicated cocky-employment situations reported on Schedule C. And yes, you at present have the ability to written report business expenses.
TurboTax Alive: If yous would like a real tax expert to review your Self-Employed Edition return through TurboTax Live, your total cost is $199 for your federal render and $49 per country render.
| Plan: | Gratuitous | Deluxe | Premier | Self-Employed |
|---|---|---|---|---|
| W-ii Income | Yes | Yes | Yes | Yes |
| Involvement and Dividend Income | Aye, if $one,500 or less | Yes, even if more than $1,500 | Aye, even if more than $i,500 | Yes, even if more than $one,500 |
| Standard Deduction | Yes | Yes | Yes | Aye |
| Earned Income Credit (EIC) | Aye | Yes | Yes | Yes |
| Child Tax Credits | Yes | Yes | Aye | Yep |
| Pension Income | No | Yes | Aye | Yes |
| Unemployment Compensation | No | Yes | Yep | Yes |
| Educator Expenses | No | Aye | Yes | Yes |
| Pupil Loan Interest Deduction | No | Yep | Yes | Yeah |
| Childcare Expenses Credit | No | Yeah | Yeah | Yes |
| Pedagogy Credits | No | Yes | Yes | Yes |
| Retirement Savings Credit | No | Yep | Yes | Yep |
| Medical Expenses | No | Yeah | Yes | Yes |
| State and Local Taxes Paid | No | Yeah | Yep | Yeah |
| Property Taxes | No | Yep | Yes | Yep |
| Dwelling house Mortgage Interest | No | Yes | Yes | Yes |
| Charitable Contributions | No | Yes | Yeah | Yes |
| Stock Sales | No | No | Yes | Yes |
| Rental Income | No | No | Yeah | Yes |
| Cocky-Employment Income | No | Yes, but not expenses | Yep, but non expenses | Yes, including expenses |
TurboTax User Experience
Where TurboTax actually shines is in its user-friendly interface.
Overall, I found each section of the TurboTax walkthrough that I detail below very convenient and easy-to-understand.
Another aspect of the TurboTax user experience that I appreciated was that my revenue enhancement due / refund amounts were always-present in the upper-left-mitt corner of my screen. These amounts would update as I provided more data to the software. I did not discover this feature when testing H&R Block, though H&R Cake did periodically permit me know my tentative refund amount.
Actually the only slightly annoying part of my TurboTax user experience was the ubiquitous upsells, so I'm going to talk about this up-forepart to get it out of the way.
Upsells
I did a few examination tax returns in putting together this review, and I was surprised to observe that the upsells actually varied from return to return.
Were they annoying? Yes.
Only is it a dealbreaker? No. I sympathize that TurboTax is providing a valuable product — sometimes for complimentary — and they demand to increase margins whatsoever style they can.
I merely wish that these upsells weren't being pushed on people who would derive little benefit from them. I explain what I hateful below.
TurboTax Max
The upsell I was shown during my first test render was for TurboTax Max audit protection. This service was listed every bit costing an additional $fifty.
I honestly can't give an accurate review of this audit protection considering I have no experience with it.
That said, if your return is pretty much comprised of documents that others prepared for you lot — such every bit your W-2 or a 1099-DIV from your brokerage — your chance of being audited is extremely small.
And even if you are "audited," the IRS will probably just be asking for tax forms to verify the items on your return. In other words, if your taxation return is elementary, you probably don't need this audit protection.
Considering the exam tax return I was preparing at the time was a very unproblematic return — just Due west-two income — I found this offer for inspect protection pretty distasteful.
TurboTax +Plus
The other upsell I saw was to upgrade to TurboTax +Plus.
This provides — for a flat fee — the post-obit services:
- One-on-one back up specialist who tin video chat with you to help you prepare your tax return
- Personalized tax tips based on your tax render
- Amended return back up
- Tax document storage
- Inspect support
- Identity theft back up
I was preparing a test return using the Gratis Edition when I got this upsell — and I didn't like that.
Think, the TurboTax Free Edition is for people with incredibly simple revenue enhancement situations, so I don't really think they need this kind of support.
Edition Upgrades
For many taxpayers, the TurboTax paid editions are worth it because your tax state of affairs but merits it.
Other taxpayers, however, may not be well-served by, say, upgrading from the Free Edition to the Premium Edition.
I discuss an example of an edition upgrade in the walkthrough below nether the Deductions & Credits section.
TurboTax is a top-of-the-line tax software, but it doesn't come cheap and tends to upsell users on various services.
Choosing Your Edition
The commencement thing yous'll run into after y'all sign up for TurboTax is a screen with twelve options that you can select.
TurboTax uses your selections to funnel you into one of the editions.
Notation that if you choose anything other than "I have a job (received Westward-2)" and "I accept children or dependents" TurboTax will steer y'all toward one of the paid options rather than the gratuitous selection.
If you're truly not sure which one edition or the other best fits your situation, I would recommend going with the cheaper option.
If it turns out you demand the more expensive edition, you tin but upgrade as you prepare your returns. And remember, TurboTax doesn't accept whatever payment up-front end; you simply pay when you file your taxes.
Share Tax Information
Next you lot'll be prompted to share your revenue enhancement information with Intuit, TurboTax's parent visitor.
The reason Intuit wants you to do this is and then that they tin can show you offers from their partners.
For example, if on your revenue enhancement return Intuit sees that based on the mortgage information you input that y'all may exist able to qualify for a lower interest charge per unit on your mortgage, Intuit will provide you with mortgage refinance offers.
This could be helpful to you lot, but I personally don't like the idea of giving even more entities my virtually-sensitive fiscal and personal data.
If y'all're not comfortable with this, only click "No Thank you" at the bottom of the second screen. This will not touch your revenue enhancement render in any way.
Personal Information
The next few screens will ask you for your personal information.
This section is pretty basic and self-explanatory, so I'm not going to elaborate on information technology other than that you volition exist sharing with TurboTax bones data such every bit your:
- Name
- Social Security Number
- Birthdate
- Marital Condition
- Accost
Although sharing this kind of data, specially your social security number, over the Internet tin feel a bit strange, know that this is completely normal and necessary to completing your tax return.
Y'all'll besides be asked how you lot filed your revenue enhancement returns last twelvemonth and how you feel about doing your taxes.
On another screen, you'll be asked whether or not certain taxation events happened in your life during the year (or example, whether or non you had a child). Be sure to click "Show More" at the bottom to exist sure y'all don't miss anything.
As you work through the interface, you'll be shown a summary screen and likewise given the selection to view the list of documents TurboTax thinks you'll need to prepare your return based on the information you provided. I would recommend viewing this list to make certain you have everything you need.
At the finish of information technology all, TurboTax volition tell y'all what filing condition it thinks would be all-time for you.
Wages & Income
Next upward is the Wages & Income section, where yous — y'all guessed it — tell TurboTax about all the coin you fabricated during the year.
W-2 Wages
TurboTax has a pretty absurd West-2 import feature.
After you input your employer's EIN in the Westward-ii input screen, TurboTax will see if your W-2 qualifies for automated import.
If it does, great!
If not, no worries — you can simply input your W-2 information the proficient old-fashioned way i.e. using your keyboard.
Other Income
Subsequently your West-2 data is complete, y'all move on to your other income.
TurboTax asks you lot a series of self-explanatory questions such as:
- Did you make whatever money outside the Usa?
- Did you receive whatever retirement income?
- Did you receive any involvement payments?
- Did yous sell whatsoever investments?
- Did yous receive any dividend payments?
- Did you lot ain or control a foreign banking company business relationship, trust, or fiscal asset?
For kicks, I indicated that I received interest payments during the twelvemonth, which triggered on the side by side screen a push button where I could "beginning" telling TurboTax nigh the interest income earned during the yr.
The involvement income input screen was very cocky-explanatory and followed the flow of Grade 1099-INT rather well.
Deductions & Credits
Subsequently you've told TurboTax about all your income items, it's time to get to the good stuff — deductions and credits.
Hither's where you lot tin tell TurboTax about your:
- Estimated tax payments
- HSA or MSA
- Traditional or Roth IRA
- Pupil loan payments
- Strange taxes paid
I indicated that I made educatee loan payments during the year, which triggered on the next screen a button where I could "start" telling TurboTax most the educatee loan interest I paid during the year.
Palatial Edition Upgrade
I input that I paid $100 in student loan involvement during the year.
And estimate what happened? TurboTax tried to upsell me to the Deluxe Edition, which costs $xl for federal and an additional $40 for state for a total filing price of $80! Strong language was used, such as the word "need."
Only to back up hither, in this item test, I indicated that I was a unmarried filer living in California with $50,000 of Due west-2 wages as my but income and who takes the standard deduction. That puts me in the 22% tax bracket for federal income tax purposes and 8% for California purposes — this comes out to a combined 30% combined tax rate — meaning that a $100 deduction for student loan interest would only result in $30 of tax savings.
Based on the prices at the time, I was being asked to pay an additional $eighty to TurboTax in order to get a deduction that will outcome in $xxx of revenue enhancement savings! Now, I have no problem with TurboTax charging what it needs to for its services, but I think TurboTax could actually be more transparent here by stating exactly how much one would save in taxes by upgrading.
Note: H&R Cake's Costless Online edition does not make you upgrade to a paid version in order to report the student loan interest deduction. See my comparison table between TurboTax Complimentary Edition and H&R Block Costless Online.
Standard Deduction vs. Itemized Deductions
Afterwards y'all terminate inputting your deductions, TurboTax will allow yous know whether — based, of course, on the information you provided — taking the standard deduction or itemizing your deductions would make the most sense.
Underneath the graphic, you lot can click a dropdown that says, "Show me the breakdown of my itemized deductions," to come across the details hither.
So earlier rushing to click the "Continue" push, be sure to review the math here to brand sure that you didn't forget to input something.
Other Revenue enhancement Situations
The next few screens volition ask you various questions to encounter if your revenue enhancement situation requires any additional forms.
These are things like:
- Did yous hire a alive-in nanny or household employee?
- Exercise y'all desire to utilise your refund to next year's return?
- Do yous want to designate $3 to the presidential campaign fund?
- Did you feel identity theft and receive an Identity Protection Pin (IP Pin) from the IRS?
The second, third, and fourth questions are rather self-explanatory, and so I won't focus on them.
And the beginning question is a rare enough situation that I'm not going to dwell on it, just please permit me know in the comments below if you'd like me to review TurboTax'due south treatment of household employee filings.
State Taxes
The next few screens will go over your land tax state of affairs.
State Revenue enhancement Return Information
Most of the data you need for your land tax returns will be transferred over from the previous inputs you made for your federal return.
There may be some additional questions such equally :
- Whether you lot filed a state revenue enhancement render last yr
- Whether you filed a land tax render with a unlike proper name last yr
- If you lot're subject to state electronic payment mandates
- Whether you have dependents for land revenue enhancement purposes only not federal tax purposes
You volition besides be asked if you take sure kinds of income or deductions treated differently for country revenue enhancement purposes than federal tax purposes.
As the Land Taxes section is state-specific, I'm not going into item here other than stating that TurboTax'south approach appears to be quite comprehensive.
Finally, in sure states, yous may see a screen about Alternative Minimum Taxation (AMT).
Untaxed-Out-of-State Purchases
Adjacent yous'll be asked well-nigh if you purchased items outside your abode country on which you weren't charged sales tax by your home state.
If this is the case, you may be subject to use taxation on these purchases.
State Credits
You lot'll also be asked if you retrieve you may authorize for certain state-specific credits and other tax breaks.
Once more, this section is to land-specific that I'chiliad not going to go into detail hither.
Power to Handle Complex Returns
Another thing I look at when assessing a tax software is its power to handle complex returns.
What I Mean by "Complex"
Now, I'k not talking about some billionaire's revenue enhancement return with hundreds of K-1s, foreign transactions, and all kinds of disclosures that need to be made. Frankly, people like that shouldn't be using TurboTax; they should probably be working with a revenue enhancement professional.
When I say "complex return" in this context I'g describing "center-class complex," i.e. a render that involves all of the following:
- Small business reported on Schedule C
- Stock sales reported on Schedule D
- Rental property reported on Schedule E
- A K-1 reported on Schedule Due east
TurboTax'due south Performance
I really ran a demo return through TurboTax with all of these items and was pleased with the results.
The interface was like shooting fish in a barrel to follow, somewhat foolproof, and the results were authentic.
See the video below for the walkthrough.
TurboTax App
Believe it or not, TurboTax has an app that you lot can use to file your taxes. It appears that TurboTax blocks screenshots from existence taken while in the app.
Most Identical to Desktop
The interface works much as the same every bit the desktop version with some key differences:
- The app gives yous the option to scan your driver'south license to auto-complete some information for you.
- You lot can snap a photo of your Due west-two to import information technology.
- You get a pop-up every now and then to charge per unit the TurboTax app (as is common with pretty much whatsoever app these days).
Just other than that, it's extremely like to the desktop version, including the upsells.
Fast and Like shooting fish in a barrel to Use
I was extremely impressed by the app and had no complaints.
It's fast and easy-to-use, much like the desktop version.
TurboTax Customer Service
Yes, TurboTax is a do-information technology-yourself taxation software, simply you aren't left to the wolves when it comes to technical support.
At the top-right of the TurboTax interface, you'll see the three icons shown beneath. Each ane of them corresponds to a different level of support that I draw below.
Search Role
The kickoff line of defense force when information technology comes to TurboTax support is the search function, represented past the magnifying drinking glass.
When you blazon a question or topic in the search box, TurboTax provides you lot with one of two things if not both:
- A link to the relevant office of the tax training screen to deal with your issue
- A link (or links) to similar questions TurboTax answers have asked of the TurboTax customs and the answers they received from others in the community
The get-go option is cocky-explanatory merely may not exist the nigh helpful since you're just taken to an input screen.
The second option, on the other paw, can be very helpful, just proceed in mind that the answers to these questions are non necessarily from tax professionals (though they could be), and they're often anonymous.
For instance, here's an answer from someone with the username xmasbaby0 that appeared when I typed, "I lost my Westward-two course," in the search box.
At present, xmasbaby0 really gave a pretty adept reply, simply my point is that these answers are oftentimes completely anonymous, and y'all have no idea of how trustworthy the individual answering actually is.
That said, in my experience, the answers are helpful more often than non, but please don't accept them as professional revenue enhancement advice.
TurboTax Banana
The next support function is the TurboTax Assistant, which can exist accessed by clicking on the question bubble.
This is substantially a chatbox that shows yous relevant community answers when yous enquire it a question.
TurboTax Live
Finally, you have TurboTax Live, which gives you the power to livechat with a real tax proficient direct on your screen.
I must acknowledge that this is a pretty cool feature.
Of course, I can't fully review this attribute of TurboTax client service because I have not used it myself, but I do like the idea of users being able to chat with a professional person if they feel that they demand i.
That said, if you accept a relatively straightforward return — or even a moderately complex return — y'all probably don't need this level of support to accurately set your tax returns.
Premier
$89 $69 Schedule D
Schedule Eastward
Self-Employed
$119 $89 Schedule C
TurboTax Pros and Cons
TurboTax is a great tax software, but it'south not perfect. Beneath, I list a summary of the pros also of the cons of the TurboTax software.
TurboTax Pros
TurboTax Pros
- Great pattern. The menstruation of the TurboTax interface is truly premium and feels luxury.
- Accurate. As far as I could tell based on the test returns, TurboTax prepared the returns accurately. That said, it is a tool, and only equally useful every bit the private using it is knowledgeable.
- App. The TurboTax app is fast and retains the easy interface of the desktop version, making doing your tax returns on your mobile device a breeze.
- Tin handle complex returns. TurboTax was able to handle even the more complicated taxation scenarios I threw at it.
TurboTax Cons
TurboTax Cons
- Expensive. TurboTax has the highest price point of any major retail tax software.
- Gratuitous version is defective. TurboTax's complimentary version is not as robust and cannot handle as many tax scenarios every bit those of its competitors.
- Upsells. You'll definitely be hitting up with various upgrades that yous may or may not need as yous prepare your tax return in TurboTax.
TurboTax FAQs
- Is TurboTax free?
- Does TurboTax get you the best refund?
- How long does information technology take to file taxes on TurboTax?
Should You Use TurboTax?
If you use TurboTax, y'all tin can be confident that you volition be using a premium, easy-to-use product that volition take about of the pain out of preparing your taxation return.
That said, information technology comes at a high toll betoken and has a habit of upselling its more robust features that you may not really need.
The pick is upwards to yous, but keep in listen that there are other tax preparation options available to you lot.
Source: https://moneydoneright.com/taxes/personal-taxes/turbotax-review/
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