TurboTax Review 2025 – Is This Tax Software Overhyped?

Filing taxes is one of the most dreaded tasks of the year for most of us, but with online tax prep services like TurboTax, it doesn’t have to be.

As a team of finance experts with over 5 years of experience, we decided to test out TurboTax services to see if it offers the best value for money.

In this review, we will cover the costs, pros, cons, and more, to help you make an informed decision on whether this tax software is a good fit for your business.

What is TurboTax?

TurboTax, created by Intuit, is one of the most popular tax preparation software in the U.S.

Around 40 million Americans used TurboTax to file their taxes online in 2019, making it a top choice among other tax filing products [1].

The software walks you through the entire tax filing process, from determining your filing status to entering deductions and credits so you get the most refund.

TurboTax has several versions for different tax situations including helping you claim child tax credit and other limited credits that apply to your return.

Its user-friendly interface, step-by-step guidance, and powerful tax tools make it one of the most popular in the industry.

TurboTax Review Ratings

We put TurboTax to the test to see how it handles different tax forms and different financial situations. Our ratings are based on real experience and research, scores for effectiveness, and user satisfaction.

Support - 4.8/5

TurboTax has great customer support with multiple ways to get help. You can access live chat, phone support, and an extensive help center with guides and FAQs.

The availability of certified tax pros, including the option to connect with a CPA or EA for extra help is one of the features that puts TurboTax ahead of many others.

However, like most software, wait times can be long especially if you’re filing during peak season.

Price - 4.6/5

TurboTax has a free version for basic returns but it’s the paid version with more features that many users choose.

You can use the free edition for simple returns, W-2s, and standard deductions or opt for the deluxe edition for itemized deductions (e.g. mortgage interest, medical expenses).

While the price is reasonable, it can add up if you need advanced features or live support so make sure to check which version you need.

User Ratings - 4.7/5

Most users rave about the software’s ease of use, detailed guidance, and accuracy of calculations.

They also like the simple design that makes filing taxes a breeze. From my experience, the step-by-step prompts and FAQs were super helpful and made the whole process less scary.

Ease of Use - 4.8/5

TurboTax is praised for its user-friendly interface with a 4.8 out of 5 rating. The design is clean and simple and guides you through the tax filing process.

I was impressed with how easy it was to get through even the more complicated sections like deductions and credits.

The software has clear step-by-step instructions and instant feedback to ensure accuracy.

Features - 4.8/5

TurboTax has everything from simple returns to advanced options for self-employed, freelancers, and small business owners.

Key features include a tax deduction finder, real-time chat support, and automatic updates for tax law changes.

I liked TurboTax’s “Smart Scan” tool which helps find missed deductions and credits to maximize your refund.

The only minor drawback is that some specialized features are missing in the lower-tier plans which can be limiting for users with complex tax situations.

But overall the platform has a lot of tools to offer to users of all kinds.

Privacy and Security- 4.7/5

TurboTax keeps your information safe by using strong encryption to protect your data.

They also offer multi-factor authentication, which adds an extra layer of security when you log in.

Their privacy policies make it clear that they do not sell your personal data to anyone.

Overall, TurboTax is a secure choice for filing your taxes, with good protections in place to keep your information safe.

TurboTax Services, Features and Prices

TurboTax has different packages to fit different tax situations, each designed for ease of use and accuracy. Here’s what you get from each package:

• Free Edition (Free for Federal Filing Only): The TurboTax Free Edition is for simple tax returns, filing W-2 income, standard deductions, and Earned Income Tax Credit (EITC) [2]. This package includes free federal filing and access to TurboTax’s user-friendly interface. But state filing is extra and users with complex tax situations need to upgrade.
• Deluxe Edition ($69 + State Filing Fees): This package is for those who own a home or want to maximize deductions. It includes everything from the Free Edition plus tools to maximize deductions for mortgage interest, property taxes, and charitable donations. The Deluxe Edition also has a more personalized support experience and e-file for both federal and state returns.
• Premier Edition ($73 + State Filing Fees): This package is for those who have investments or rental property. It includes everything from the Deluxe Edition plus tools to report investment income, capital gains, and rental property depreciation. You also get priority customer support and more detailed guidance for complex tax situations.
• Self-Employed Edition ($129 + State Filing Fees): The Self-Employed package is for freelancers, contractors, and small business owners. In addition to everything in the Premier Edition, it includes specialized tools for self-employed tax filers like tracking business expenses and maximizing deductions for your business.
• TurboTax Live Assisted ($219 + State Filing Fees): TurboTax Live gives you access to live CPA or EA support. Whether you need help filing your return or a quick review of your completed forms, this service has a tax professional available to answer your questions. It’s a premium option for those who want direct guidance while preparing their taxes.

Additional Services

In addition to its core tax filing services, TurboTax also offers several extra features to make your experience better. Here are some of the extras:

• State Filing (Extra Fee): TurboTax charges extra for state filing which varies by state. You can file up to 3 state returns with TurboTax but any additional states will cost extra.
• TurboTax Live Full Service (Starting from $89 + state fees): You get a tax expert to prepare your return for you.
• Refund Advance (Available through participating lenders): TurboTax offers the option to get an advance on your federal refund which can help if you need cash now. The amount available is based on your refund amount and this feature has no interest or fees if paid back within the specified time.

Benefits

Here are some of the best things we liked about TurboTax:

• User Friendly: TurboTax has an extremely user-friendly interface. The instructions are clear and navigation is easy. I liked how fast I could get through each section without getting confused.
• Great Customer Support: TurboTax has great customer support with a dedicated help section available 24/7. Whether it’s by phone, chat, or email I always get timely and accurate answers to my questions.
• Fast Filing and Refunds: With TurboTax, I was able to file fast and get my refund within the expected timeframe. They offer direct deposit and Refund Advance options to speed up the process.
• Full Tax Tools: TurboTax has everything from simple tax filing to complex returns with investments or self-employment. The software makes sure every possible deduction and credit is considered to maximize my return.

Downsides

While TurboTax is great for many, it has some downsides that might be a deal breaker for some.

• Pricing Can Be Expensive: TurboTax’s pricing is one of its biggest cons. Although the Free Edition is available, users with more complex tax situations can quickly see the costs add up, especially for state filings or premium services like TurboTax Live or Audit Defense. 
• Limited Features on Basic Plans: The Free Edition and lower tier plans don’t have some of the features that many users need like itemized deductions or support for more complex tax situations. To get those advanced tools you’ll need to upgrade to a higher plan.
• Upselling: Some users report that TurboTax suggests additional services or upgrades often which can feel like upselling. While those add-ons are useful for some filers, they can be overwhelming or unnecessary for those who just need basic tax help.
• Steep Learning Curve for Advanced Features: While the platform is easy to use for simple returns, some users find there’s a bit of a learning curve when it comes to using advanced features or complex tax situations. This can be frustrating for first-time users who are not familiar with tax terms or calculations.

Who Should Use TurboTax?

TurboTax is good for individuals who want to file simple to moderately complex tax returns.

If you’re a W-2 employee with minimal deductions or credits, the free version might be all you need. But if you have itemized deductions, investment income, or business expenses, one of the paid versions will likely be better.

TurboTax is also good for freelancers, contractors, and small business owners who need specific tax tools and expert advice. The ability to connect with a CPA or enrolled agent makes this software good for more complex tax situations.

Customer Testimonials

"I liked the TurboTax Online Free Edition. The software is very easy to use."

- George Michael, Tucson, AZ

"TurboTax is easy to use. If you need help, online tax experts are available. I would recommend using this tax software overpaying hundreds in-store elsewhere. TurboTax guides you through the tax preparation process."

- Lakeisha2985, Chicago, IL

"Easy to prepare my taxes with TurboTax Live Full Service. Beat my local CPA’s quote and online filing was easier."

- Augmentail, Stanford, CT

TurboTax Alternatives

Here’s how TurboTax compares to its top competitors:

H&R Block

H&R Block is one of the most popular tax software providers that offers various plans to suit different tax situations. Both have great customer support and feature-packed plans but there are some differences.

Compared to TurboTax, H&R Block’s pricing is more competitive and its interface is more user-friendly for beginners with clear guidance for each step.

However, TurboTax has more comprehensive features for complex returns like investments or self-employment filings.

Both have in-person support at their physical locations, H&R Block has face-to-face support which TurboTax doesn’t.

TaxSlayer

TaxSlayer has affordable pricing for tax preparation, and many users like its simple platform and ease of use. It doesn’t have all the features that TurboTax has but it’s good for those with simple tax situations.

One of the best things about TaxSlayer is its pricing which is lower than TurboTax across all plans.

But TaxSlayer’s customer support and overall user interface isn’t as user-friendly as TurboTax. TurboTax has more advanced features for complex situations like real-time advice from tax pros.

FreeTaxUSA

FreeTaxUSA is another budget option for tax preparation. It offers free federal filing for simple returns with extra fees for state filing and more complex services.

FreeTaxUSA is cheaper than TurboTax but lacks the high-end support and guidance hence it’s good for basic returns and for users who don’t need the extras.

The biggest advantage of FreeTaxUSA is the straightforward filings, but TurboTax has more features and resources for complex tax situations.

FAQs

Our Verdict on TurboTax

TurboTax is a great choice for those who need advanced features like investment reporting and self-employment deductions. However, it can get expensive, especially for simpler tax situations.

If you're looking for a more affordable option or want the option of in-person help, H&R Block is a solid alternative. They offer strong security, great customer support, and competitive pricing for basic filings.

Overall, we recommend H&R Block if you're after a balance of price, support, and ease of use.

References

1. https://www.propublica.org/article/inside-turbotax-20-year-fight-to-stop-americans-from-filing-their-taxes-for-free
2. https://www.irs.gov/credits-deductions/individuals/earned-income-tax-credit-eitc