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TurboTax Free vs Paid: Is it Worthy?

TurboTax Free vs Paid: Is it Worthy?

TurboTax Free vs Paid: You might be wondering is TurboTax Free is better enough or TurboTax Paid is worth? Or wondering which will provide you better options? You are at the right place! In this article, I’ll help you choose between TurboTax free and TurboTax paid. Using a free version is not a big deal but paid plans offer some advanced features.

TurboTax is a software for preparation of American income tax returns that is developed by Intuit. It provides you the authority to get your taxes done right and get you maximum refund for sure. You can easily file your taxes electronically and receive email confirmation from the IRS once your online tax return has been approved.

TurboTax Free vs Paid: Comparison

TurboTax correspondences up the things several people want to file their taxes. Where some people with unique or intricate conditions might feel more relaxed or comfortable with the direct support of a tax professional, the majority of tax situations are handled by TurboTax.

TurboTax Free

With TurboTax free, you can file your taxes online for free, if you have a simple tax return. Simply import your W-2 and just like any other tax programs or software, it has a series of questions and answers regarding your income, household and chances for credits and deductions.

In addition to these questions and answers, you are supposed to add information from your employer, 1098, 1099, W-2, other income sources and other tax forms which might show up in your inbox or mailbox.

TurboTax Paid

Basically, TurboTax has three paid versions that run from $60 – $120 for federal filling and $45 for state filing. Its paid plans are Deluxe, Premier, Self-employed which costs $60, $90, and $120 respectively. However, extra fees will also apply if you need state filling, upgrade to TurboTax live, opt for TurboTax Live full service, or if you pay TurboTax from your refund.

turbotax free vs paid

It isn’t the cheapest, but you get what you pay for. That is its in-built interfaces and forms, better customer service, the assurance that you got a precise tax refund with the maximum cash in your pocket.

Nevertheless, many people with simple taxes may be fulfilled with inexpensive choices and some people may just feel more comfortable for paying an accountant to do their taxes for them.

TurboTax Free vs Paid: What is TurboTax?

TurboTax is the utmost expensive choice for filing taxes online, but it provides access to experts and a high-quality user interface. It is exclusively valuable for self-employed filers who use QuickBooks integrations.

QuickBooks is a software developed by intuit which is used by millions of companies to manage their account. Nevertheless, TurboTax is also popular because of its user-friendly design and simply step-by-step guidance.

TurboTax Free vs Paid: Plans and Pricing

Plans and pricing is always a consideration when you select a tax filing service.


  • It is completely free.
  • It covers W-2 income, income, retirement distributions, unemployment, EITC (the earned income tax credit), limited 1099 interest and surpluses, and the CTC (child tax credit).
  • It doesn’t permit detailing your deductions.
  • It includes features such as easy import and error check.
  • Limited number of tax forms.
  • No income restrictions.
  • Also, if you wish to claim student credits or deductions, this plan is not for you.


  • It costs $60.
  • Inuit promotes this as the broadly popular version of its platform.
  • It contains everything in the free option along with the choice to list your taxes and go in for mortgage interest.
  • It also has charitable donations calculator.
  • You can be able to claim student credits and deductions with this plan.


  • It costs $90.
  • People who are investors or rental property owners choose to take up this plan.
  • Accurate refinancing deductions and stock reporting.
  • This will even let you to auto-import your investment data straight from several popular brokerages and banks.


  • It costs $120.
  • Its customers are mostly those who own their own business along with a side hustle.
  • It covers deductions and credits associated to businesses along with freelancers, contractors, consultants, rideshare drivers, and other small businesses.
  • It has access to self-employment tax experts.
  • It also consists of a free subscription to QuickBooks for easy integration and expenditure tracking if you previously have an account.

The Bottom Line

What wins? Free or Paid plan? Well, it really depends on what actually you are looking for. TurboTax Deluxe plan is broadly popular among its users, TurboTax Premier is used by investors or rental property owners, on the other hand TurboTax self-employed is used by freelancers, contractors, consultants, rideshare drivers, and other small businesses.

Beyond these things, which service plan you wish to chose may come down to your personal needs and preferences. Some people may prefer free or deluxe or self-employed solely based on their tax filings. So, I hope the above article on TurboTax free vs Paid has helped you choose the best option.


Is TurboTax free edition really free?

Yes. It is completely free with $0 federal + $0 State + $0 to file.

What is the difference between TurboTax free and deluxe?

TurboTax Deluxe is capable of processing more forms than the free version, so people with more complex circumstances can profit from it.

Why do I have to pay for TurboTax free edition?

TurboTax free edition is a name which TurboTax uses for its free file version. This is made as a part of the industry’s deal with IRS. If you pay an IRS or state penalty, you will be refunded.

How much does it cost to file your taxes with TurboTax?

Its paid plans are Deluxe, Premier, Self-employed which costs $60, $90, and $120 respectively.