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Monday, February 10th
Those who are familiar with Intuit will likely already know about Turbotax. This tax preparation service is one of many sites and apps under the Intuit family (including Credit Karma and Quickbooks). And, there are tons of tools at Turbotax available to help you, like checklists, tips and tricks, and a tax refund calculator. Turbotax got started in 1997 and offers IRS-certified e-filing for your taxes.
Be as hands-on as you want
There are three ways to complete your tax preparation with Turbotax: Do it myself, Help me do it (Live Assisted), and Do it for me (Live Full Service). As with most tax preparation services, any taxes you could file yourself under a simple filing (mainly for W-2 employees) are free with Turbotax. However, if you're going to need more complicated forms and schedules, the DIY approach includes in-software guidance for filing, product support, upload and transfer of your tax documents (and IRS forms), and audit support. If you want a little extra help, you can choose the Live Assisted package which includes unlimited help from tax experts, review before you file, support year-round, and an approval guarantee on top of the features of the Do it yourself plan. The third option is the Live Full Service which includes all the features of the previous tier along with a tax expert assigned to you based on your unique situation, who does your taxes for you in real time as well as filing for you too.
Transparent pricing before you sign up
No matter what your tax situation, you can get started by signing up for Turbotax for free. You do need to choose which tier you want before you can join (between the DIY or two assisted tiers), but you won't pay anything until you finally file. To help you choose the right option (and see a preview for the total cost), Turbotax will ask you about how you received income. For example, we were quoted $89 for taxpayers who are self-employed or independent contractors.
Pricing from $0 to $309
Turbotax offers its prices in ranges. The DIY filing ranges from $0 to $89 depending on what forms and schedules you'll need, and the Live Assisted filing ranges from $49 to $169, again depending on how difficult the filing will be. Finally, the top tier (where Turbotax does all the work for you) starts at $89 and can go up as high as $309 for filings that include forms for business owners or contractors like 1099-NEC or Schedule C. Like with most tax prep companies, this does not include the cost of state filing (only federal). The cost per state filing is $49.
Highest returns and guaranteed accuracy
Like many of its competitors, Turbotax offers a guarantee that you'll get the highest return amount when you use their platform. However, there are some other guarantees to consider. Turbotax offers a guarantee that your tax returns are backed for life. You'll never have to worry about your taxes not being accurate. Turbotax promises to pay any IRS penalties incurred if there is any error in calculation on Turbotax's end.
Mixed reviews
Turbotax holds a "B-” rating from the BBB as well as dismal reviews on third-party review sites. For example, on Trustpilot, Turbotax has a 1.2-star average. Customers generally complain about the high costs at Turbotax. However, there is good news too. Turbotax shows a 4.8-star average rating from app sites like the Apple Store and Google Play, where thousands of users praise the ease of use of Turbotax on the whole. While most customers complain about the lack of customer service on Trustpilot, this only makes up around 500 total reviews, and reviews on app stores show a more balanced (and accurate) view of the total number of users who choose Turbotax.
Good, but too costly to be great
With its reputation yo-yo-ing between positive and fairly negative, Turbotax is a bit of an enigma in terms of quality. While it is popular and used by many people to complete their taxes, you may find better deals and support on other platforms. However, for basic filing, it remains a competitive choice. For these reasons, Turbotax earns a slightly above-average rating in our review.
Let's face it: tax season is nobody's favorite time of the year. Whether you're a W-2 employee or an independent contractor, taxes are a source of stress every spring. But, it doesn't have to be that way. Tax preparation services are there to ease the process (and are particularly helpful if you own your own business).
So, what do tax preparation services actually do? Most services offer planning to understand your tax situation and filing. You may receive preparation of your actual return, or advice on different aspects of your taxes like individual tax returns, estate tax planning, personal financial planning, deductions, property tax assessments, tax credit reviews, and more. The tax advisor (individual or website) can make taxes make sense and help you avoid many of the pitfalls.
A few years ago, the IRS (Internal Revenue Service) estimated that there were around 1.2 million paid tax preparers available in the US. Tax preparation can be completed by a range of licensed agents, accountants, or businesses who can take the weight of tax season off your shoulders.
The most important thing about finding a tax preparation service is to make sure you work with one you trust. The three best professional credentials to look for include Enrolled Agents (or entities), who are licensed directly by the IRS and must pass an examination to demonstrate their understanding of federal tax planning, individual and business taxes, and representing you properly; Certified Public Accountants (CPAs) who have studied finance at a university and passed charter exams and requirements for accounting; and, Attorneys who are licensed by state courts and have passed a bar exam in financial law.
Now, keep in mind, there will be fees for using most tax preparation services, but these will be minimal compared to the high fines and charges from the IRS if you make a mistake on your return. For even small errors on your taxes, you could be looking at thousands of dollars in fines. A one-time fee for a tax preparation service is no sweat in comparison. Most tax preparation and filing costs between $30 to $500 (though some really comprehensive services cost more), so you'll want to make sure you know what you need before you start.
If you're ready to simplify tax season, but don't know which service to choose, we've put together some factors that can help you find the best tax preparation service for your financial situation:
To help you find the best service to get your return filed this tax season, Top Consumer Reviews has researched and ranked the top tax preparation services out there today. Take the stress out of tax season and hand the nitty-gritty details over to an expert (or enjoy a guided DIY approach that is as simple as a step-by-step guide). After that, you just need to sit back, relax, and wait for those lovely tax returns!
Select any 2 Tax Preparation Services to compare them head to head