TurboTax offers a free “simple tax returns” service to its customers. This free service is called “AbsoluteZERO” and is mainly designed for regular company employees filing their 1040EZ/1040A tax returns. If you’re unsure whether you fall into this category or not, their website provides you with some questions to answer such as “do you own a business?” and “are you an independent contractor?” Depending on your answers to these questions, the site then highlights which of its tax services is best for you, with more complicated systems (such as those for self-employed people) coming at a price. Answer these questions and you’ll be able to see if you can file a TurboTax tax return for free.
The free AbsoluteZERO e-filing system allows you to file federal (1040EZ/1040A) taxes and state taxes. You simply need to upload a photo of your W-2 and answer some simple lifestyle questions in order to get started. You’ll have 24/7 support from the online community of TurboTax specialists and customers available at your fingertips. The “Turbo” feature they offer here also allows you to discover your income, credit score, and debt-to-income ratio for free. These 3 numbers can be very useful, so it’s good to know that you can find them out for free!
TurboTax also offer other e-filing services that have costs attached to them. Their “Deluxe” service is said to be their most popular, and comes at a price of $39.99. Their Deluxe system allows you to maximize your tax deductions and tax credits using their “deduction finder” that checks your eligibility for over 350 different tax credits and deductions. The Deluxe system also features guidance on tax deductions for homeowners paying mortgage interest, and allows you to deduct charitable donations from your liability too. You’ll receive one-on-one support from a specialist if you need it, and returning customers will have their previous year’s tax details transferred to their new return, potentially saving them a lot of time and effort this time around.
TurboTax’s “Premier” system costs $59.99 and has everything that the Deluxe system has, as well as options for covering stocks, bonds, ESPPs, and other investment-related income. The Premier system also handles rental property income and tax deductions, as well as deducting points and appraisal fees from a property refinance.
Self-employed taxpayers can use the $89.99 “Self-Employed” e-filing system. This system features everything that Premier features, as well as personalized industry-specific deductions for your line of work. Furthermore, it also offers expenses and mileage tracking via a free membership at Quickbooks Self-Employed, a system designed for self-employed people tracking their expenses.
If you’re struggling to file your taxes or have a very complicated tax situation on your hands, you can pay $149.99 to access the “TurboTaxLive” support system. This system enables you to connect to a tax expert (CPA or EA) via video call, as they offer you personalized one-on-one advice about your taxes. This professional help may be a little pricey, but it could prove to be crucial for people with unusual tax circumstances.