One of the most widely used tax preparation programs, TurboTax is also our top selection for Best Tax Software in 2023. TurboTax is a tax preparation software company that has dominated the market since its inception in the mid-1980s. Inuit, the parent company of Mint, an app for tracking spending, and QuickBooks, an accounting program for small businesses, owns it.
The user-friendliness of TurboTax is well-known. Like an interview, the program asks questions about your life and finances to help you make the best decisions and find all the deductions you're entitled to. It offers various goods to meet its customers' demands; however, only some taxpayers are eligible for the free version. Only basic tax returns should use the free edition of TurboTax.
How It Works
Tax preparation using TurboTax is as easy as conversing with the program. Suppose you're a first-time user of TurboTax. In that case, you'll be asked a series of questions about your tax situation (such as whether or not you have dependents, made charitable donations, received unemployment compensation, or sold cryptocurrency or stock) to determine which of the four available packages is best suited to you.
If you're a returning user, the software will already have your tax data from the previous year loaded in, and you'll need to input any new information—like whether or not you bought a house or started freelancing—that may influence your tax situation.
Once you begin working on your return, TurboTax will guide you through question-and-answer prompts, automatically importing documents (such as W-2s and 1099s) whenever possible to save you time. The questions are easy to understand, and the use of tax jargon is minimal. This makes submitting your taxes much easier, as the program will keep the IRS forms the same. You fill in your return automatically as you respond to questions.
What Is The Cost Of Turbotax?
TurboTax's high price tag is its main flaw compared to its rivals. TurboTax has the highest price tag compared to the other tax software we looked at. If cost-effectiveness is crucial, you might have to search elsewhere. However, TurboTax offers superior tax preparation software.
H&R Block's user interface is similar to TurboTax's, and it costs slightly less. If you're trying to save money, your best options are TaxSlayer and Cash App Taxes.
Full-service TurboTax returns for the self-employed are the most expensive option. Prices range from $209 to $399, plus $64 per state, which is still less than hiring an accountant. Your final decision on whether or not TurboTax's prices are reasonable rests solely with you.
The Benefits Of Using Turbotax
Using one of TurboTax's tax preparation software has several benefits, like straightforward uploading interfaces and live customer help, among other perks. If you are considering utilizing a TurboTax product to file your taxes in 2023, the following information is important for you to be aware of.
User-Friendly And Intuitive Interface
TurboTax employs a structure consisting of questions and answers to gather all the essential information it needs. It is straightforward and easy to understand, and it walks you through the procedure in a straightforward and simple manner.
Support For Turbotax Can Assist You In Accurately Completing Your Tax Return.
If you need help with how to do your taxes, the live assistance options offered by TurboTax can assist you in ensuring that you are moving in the proper direction. The first degree of support is called Live Assisted, and the second level is called Full Service.
With Live Assisted programs, you may talk to a professional and have them review your tax return before submitting it. TurboTax Live Assisted Basic is a free option for individuals with straightforward tax returns, provided taxes are submitted before the April 15 deadline. If you have freelance income or need to itemize deductions, you'll need to choose a premium package to ensure you get the help you require. Prices start at $129 and go up based on the features and support you want.
After uploading your papers, a tax specialist will handle everything when you use TurboTax's Full Service packages. These bundles range from $209 for those filing a basic tax return to $399 for those filing independently.
Turbotax's Disadvantages
There are certain drawbacks to using TurboTax. If you use TurboTax, you need to know these things first.
The Price Is Higher Than Competing Products.
TurboTax offers free versions for people who have straightforward tax returns. TurboTax is not free for people who have sold investments, made income as a freelancer, or received revenue from rental properties.
Additional Fees For State Taxes
The cost of filing a state tax return is only sometimes included in the cost of filing a federal return.
