Credits such as the Child and Dependent Care Credit and the Retirement Savings Credit.Adjustments to income such as the student loan interest deduction and educator expenses.Itemized deductions on Schedule A such as the mortgage interest deduction, property tax deduction, state income taxes deduction, and charitable contributions deduction.The Deluxe Edition is the most popular paid TurboTax plan since it accommodates taxpayers with a typical middle-class tax situation but doesn’t necessarily have all the bells and whistles associated with the more expensive plans.Īmong other things, this edition allows you to take the following tax deductions and credits: Next I’ll give an overview of each of the TurboTax plans followed by another table, this one showing what’s covered and what’s not in all of them. Small Business Owners, Including Freelancers You’ll find that their prices are typically higher than H&R Block and other competitors. While TurboTax is an excellent product, it definitely comes at a premium. I’ll get into the details of each of these plans later, but for now let’s touch on pricing. If you have any semblance of complexity in your tax situation whatsoever, you’ll likely need to pony up for one of TurboTax’s paid editions, be it the Deluxe, Premier, or Self-Employed. ![]() On May 4, 2022, TurboTax’s parent company, Intuit, entered into an agreement with the state attorneys general of all 50 states along with the attorney general of the District of Columbia, to not usher users into one of its paid products if it’s eligible to use a free product, whether it be TurboTax Free Edition or using TurboTax to use the IRS Free File program. In fact, the TurboTax Free Edition is quite limited compared to the H&R Block Free Online Edition.īelow is a table comparing what you get with the TurboTax Free Edition with what you get with H&R Block Free Online.Īs you can see, the H&R Block Free Online Edition provides support for far many tax situations than the TurboTax Free Edition. If your tax situation is more complicated than that, you’ll need to use one of the paid editions. ![]() who has a small amount of interest and dividends,.whose only income is reported on a W-2,.The only problem is that your tax return has to be extremely simple for you to qualify to use the Free Edition. If you would otherwise qualify to have your return prepared for free, this TurboTax Live service is specifically called TurboTax Basic.īut if you qualify for a free return through TurboTax Free Edition, I’m not really sure if you need a professional to look over your return because your return is likely quite simple. TurboTax Live: If you would like a real tax expert to review your “free” return through TurboTax Live, you will have to pay a fee for both federal and state review. Unlike some tax software that gives you a free federal return but then makes you pay to file your state return, the TurboTax Free Edition is free for both your federal and state returns. The good thing about the TurboTax Free Edition is that it’s truly free. In May, Intuit agreed to pay $141 million to a group of states making similar allegations.Īn FTC spokesperson did not respond to a request for comment.I like to start my tax software reviews by discussing the free version of the software since I know that this piece of information is all some of my readers want to know about. The agency also sought an emergency order from a federal court in 2022 blocking Intuit from claiming its services were free, but that motion was denied. The FTC said that after starting the process, many customers were told to pay a fee before they could finish filing their taxes. ![]() The lawsuit: The FTC sued Intuit in March 2022, accusing it of deceiving customers into believing they could file their taxes for free. taxpayers do not qualify for free returns, the person said. Instead, it will have to specifically name the forms, the person said.Īdditionally, Intuit must elaborate on the phrase “see if you qualify,” by specifying that a majority of U.S. Among the changes, the company will no longer be able to use the phrase “simple returns only” when describing what tax forms qualify as free. The details: The ruling from Administrative Law Judge Michael Chappell will require Intuit to change how it advertises its TurboTax products, the person with knowledge said. “Intuit has always been clear, fair and transparent with our customers, and we remain committed to providing free tax preparation,” Plummer said. After that, Intuit can go to a federal appeals court of its choice. Appeals from administrative law judge rulings are first made to the FTC’s commissioners, led by Khan.
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