Is TurboTax Deluxe Worth It? 2024 Update
JA
Summary:
Besides the free version that helps taxpayers file simple tax returns, TurboTax also provides three paid versions of their software: Deluxe, Premier, and Self-Employed for those who need more robust features. In particular, the TurboTax Deluxe Edition may be worth it for taxpayers who want to itemize their deductions and maximize their tax refund.
According to IRS data, Americans made more than 12 million math errors on their tax returns in 2021. And though the Internal Revenue Service only audits around 0.5% of individual tax returns each year, it’s still a good idea to complete your taxes correctly and on time to avoid unnecessary stress.
One way to ensure accuracy and save time is by using tax preparation software like TurboTax Deluxe. In this article, we’ll provide an in-depth review of the features offered by TurboTax Deluxe and help you decide whether it’s worth the investment.
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What Is TurboTax?
Launched in 1984, TurboTax is a user-friendly online tax preparation service that helps millions file their taxes quickly and accurately.
With TurboTax, you can easily prepare and e-file your federal and state taxes from the comfort of your home. It offers a step-by-step process to guide you through each section of the tax form, so you don’t have to worry about missing any crucial deductions or credits.
What does the TurboTax Deluxe edition include?
TurboTax is typically free for those who only use IRS Form 1040 — and don’t need to attach any forms or schedules. However, if you need to itemize your deductions, the free version will not be sufficient. To access more features, you must upgrade to the Deluxe edition or higher product tiers.
Here are the features of TurboTax Deluxe:
- Searches 350+ tax deductions and credits to help you maximize your tax refund
- Free U.S.-based product support
- Covers rental property income and tax deductions
- Features the app ItsDeductible to calculate the value of your charitable donations
How much does TurboTax Deluxe cost?
How much TurboTax Deluxe will cost depends on whether you need expert help or not. There are three pricing tiers within the TurboTax Deluxe edition.
- Do-it-yourself. If you file your tax returns yourself, TurboTax Deluxe will cost $54 for a federal return and $54 for each state return.
- Assisted. If you need expert advice as you do your taxes, TurboTax Deluxe will cost $124 for a federal return and $59 for each state return.
- Full-service. If you want a tax professional to handle your taxes for you, TurboTax Deluxe will cost $259 for a federal return and $59 for each state return.
Keep in mind that TurboTax sometimes offers early-bird pricing, so the prices above may vary depending on the time of year. To stay updated on when these prices lower, create an account and sign up to receive emails from us.
Pro Tip
Use TurboTax’s tax refund calculator to get an estimate of what you might owe or receive back from Uncle Sam.
TurboTax Deluxe’s pros and cons
Before buying TurboTax Deluxe or any other paid edition, carefully consider its pros and cons to determine whether it’s the best tax software for your situation.
Since not all taxpayers qualify for the free version, you may want to look around and compare different tax preparation software before purchasing TurboTax Deluxe. Use our tool below to browse multiple options at once and ensure you’re getting the right software for you.
Is TurboTax Deluxe worth it?
So, what’s the verdict? Is it worth upgrading to TurboTax Deluxe, or should you stick to the TurboTax Free Edition (if you qualify)?
Gabriel Lalonde — a seasoned Certified Financial Planner — thinks TurboTax Deluxe is worth the investment. “TurboTax Deluxe helps you identify every possible deduction and credit you may be eligible for, maximizing your refund or reducing your tax liability,” he says. “Plus, the software automatically checks for errors and helps you to correct them, and provides audit support and representation in case of an audit.”
Logan Allec, a Certified Public Accountant and founder of Choice Tax Relief, also believes that TuboTax is one of the best tax software out there. “Yes, there are other tax software programs that can do the same thing TurboTax can do, but I’ve found that with these other programs, the user has to have a bit more tax knowledge to use them correctly. You don’t need any of that with TurboTax. It’s super easy to use and feels luxurious.”
However, keep in mind that even though TurboTax has a lot to offer, it’s not for everyone. If your tax situation is not complicated, using the free version of the software should be sufficient.
If you’re wondering whether TurboTax Deluxe is worth it, you are probably wondering if other features are a good investment.
Pro Tip
When using TurboTax Deluxe, follow the prompts carefully and double-check (or even triple-check) for errors when you fill in your tax information on the forms.
How to purchase TurboTax Deluxe
If you’re interested in using TurboTax Deluxe to file your tax return this year, follow these steps to buy it:
- Head to TurboTax’s homepage. Once you’re at the TurboTax homepage, click the “Get Started” button. Then, you’ll be directed to an interactive guide recommending the best product based on your tax situation.
- Select the product you need. If you already know you want the Deluxe edition, you can skip the questionnaire and select the “Start for Free” button under the Deluxe section. You’ll only need to pay once you’re ready to file.
- Buy the desktop version. TurboTax recommends that most customers use the online version since it’s the most convenient. However, if you’d like to work on your taxes even when you’re not connected to the internet, you could also purchase the desktop version from an authorized retailer, such as Best Buy or Amazon.
FAQs
Should I use TurboTax Deluxe?
Whether you should use TurboTax Deluxe will entirely depend on your tax situation. Before upgrading to TurboTax’s paid versions, check and see if the free edition provides the help you need. For example, if you only want to claim the Child Tax Credit or the Earned Income Tax Credit — and don’t need to file state taxes — the basic version is more than enough for filing your tax return.
However, if your tax situation is more complicated, upgrading to TurboTax Deluxe may make more financial sense. For instance, if you own a home, have charitable donations, want to maximize your deductions, or received investment income, the TurboTax Deluxe version may be necessary.
Which TurboTax edition should I use?
TurboTax offers four product tiers: Basic, Deluxe, Premier, and Self-Employed. Which one you should purchase will depend on how complex your tax situation is and the kind of features you need. Here’s a quick breakdown of what each edition is good for.
- Free Edition: Best for simple tax returns that don’t require itemized deductions.
- Deluxe: Best for maximizing tax deductions and credits.
- Premier: Best for those who own investments and rental properties.
- Self-Employed: Best for those with personal/business income and expenses.
In addition to the breakdown above, note that you’ll need to use TurboTax’s paid versions if you have any itemized deductions, 1099-G or 1099-NEC income, or stocks, crypto, and rental income.
Will I receive support if I get audited?
Yes, TurboTax will offer free step-by-step audit guidance in the unlikely event that you receive an audit letter from the Internal Revenue Service. And if you sign up for TurboTax Audit Defense, you’ll receive full audit representation from a TurboTax professional who will defend you and assist you with the audit.
Key Takeaways
- TurboTax is a user-friendly online tax preparation service that helps taxpayers file their taxes quickly and accurately. In addition to a free, basic version, TurboTax offers three paid versions of their software: Deluxe, Premier, and Self-Employed.
- Features of TurboTax Deluxe include a deduction finder to maximize refunds, an intuitive interface, and auto-importing technology.
- The cost of TurboTax Deluxe depends on whether you need expert help — it can range from $54 to $259 for federal returns plus $59 per state return.
- Experts recommend TurboTax Deluxe for those with more complex tax situations, such as those with rental property income or dividend income. However, they also suggest the free version if your tax situation is simpler.
- You can purchase either the online version of the Deluxe edition directly from TurboTax’s website or the desktop version at retailers like Best Buy and Amazon.
Invest in the right tax software for you
TurboTax Deluxe could be worth it if you want to itemize your deductions and maximize your tax refund. And though TurboTax is pricier than other alternatives on the market, its user-friendly interface and expert support make it a software worth investing in during this tax season.
If you’re on a tight budget and can’t afford to upgrade to TurboTax Deluxe, don’t worry! Check out our comprehensive list of the best tax preparation software to find an option that’s a better fit.
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