In 2022, TurboTax continues to set the bar for high quality tax software. File imports, integrations with other financial services companies, and crypto support make it one of the easiest-to-use software options in the market. But the ease of use comes with a hefty price tag that may not be worthwhile for most filers. Our 2022 TurboTax review explains the pros and cons of the software and when it makes sense to use it. Plus, you can see how TurboTax compares on our list of the best tax software.
TurboTax Online offers free filing for some filers. People with W-2 income or Social Security Income will qualify for the free tier. The Free filing option also allows filers to claim the Child Tax Credit, Student Loan Interest Deduction, and the Earned Income Credit. Unfortunately, TurboTax’s Free tier is limited to simple tax returns only. People with HSAs, child care expenses, charitable contributions, unemployment income, or other sorts of income, deductions, or credits won’t be able to use the Free edition. The jump to Deluxe filing will cost over $100 for State and Federal filing combined. Try TurboTax Free (simple tax returns only) here >> Related: Best free tax software this year. In 2022, TurboTax placed a special emphasis on changes that taxpayers face due to the American Rescue Plan. The software guides users through an easy interview, and explains where users will be expected to answer questions about stimulus money and Advanced Child Tax Credit payments. By guiding users through these sections, TurboTax ensures that users will recover any unpaid funds through the Rebate Recovery Act. In addition to technology changes, TurboTax is emphasizing service-level options this year. Filers will receive audit support on the free tier (for simple tax returns only). Plus, users can upgrade with options such as Plus (for free filers who want tax advice), MAX (for audit support and identity theft monitoring), and TurboTax Live (support from enrolled agents or CPAs). In addition to tax software, TurboTax is continuing to push the boundaries between digital and human service tools. In 2022, TurboTax will offer "TurboTax Full Service." This option allows filers to hand over the proverbial shoebox of tax forms to a tax-filing expert who will prepare the return for you. This option is very competitively-priced compared to other tax filing services. Finally, in 2022, we named TurboTax our Best Overall Tax Software, Best For Student Loan Borrowers, Best For Cryptocurrency Traders, and Best Virutal Tax Preparation. Bascially, TurboTax is doing a lot of things right when it comes to helping people file their taxes. See our full list of the Best Tax Software here.
TurboTax is the leader in easy-to-use tax software. It offers hundreds of integrations designed for every kind of filer. Rideshare drivers can connect their app straight to TurboTax. Most stock traders can import their trades directly from their brokerage. Even crypto traders can connect to Coinbase or crypto accounting software. With a few simple clicks, large portions of the software auto-populate. The things TurboTax didn’t automate are kept super simple. The software uses easy to understand questions to guide users through complex filing rules. With robust examples and plenty of information bubbles, users are likely to get through filing without a hitch.
Screenshot of main TurboTax workflow
TurboTax is perhaps the easiest to use, most robust tax filing software on the market today. Its user experience is second to none. Here are some of its top features.
TurboTax uses a simple question-and-answer model to guide users through the software. The questions are phrased simply, so users don’t get screen fatigue when answering.
Screenshot of the "Question and Answer" user experience inside TurboTax
TurboTax has hundreds of official integration partners. When you get a W-2, 1099, or 1098 from these partners, TurboTax can connect to your form and transfer information from it. These types of integrations can speed up the time it takes to complete your tax return. In addition to these integrations, TurboTax connects to QuickBooks, Uber, Lyft, Square, and other sources to make self-employed filing easier.
TurboTax is the only leading tax software that has official partnerships with cryptocurrency accounting software. Coinbase users can directly import transactions from their accounts. People who use hardware wallets can import forms CoinLedger (formerly CryptoTrader.Tax), CoinToken, and other official partners. This is huge because if you trade crypto, you could easily have hundreds or thousands of transactions. Manually entering that would be tedious. Bonus: In partnership with Coinbase, you can have your tax refund deposited into your Coinbase account! Related: How Taxes On Cryptocurrencies Like Bitcoin Work
TurboTax makes tax filing simple by cutting out tax jargon. Info bubbles and explainers make it easy for anyone to use some of the more “complex” features such as depreciation or expense calculators.
TurboTax has excellent calculators to help filers that need to claim depreciation expenses. It also has fantastic retirement contribution calculators that flag issues when filers accidentally over contribute to retirement accounts.
TurboTax has a pricey upgrade option that allows filers to work with a certified tax expert. TurboTax Live users can have their questions answered by tax experts thereby ensuring their returns are accurate. This can be a nice feature for people who think they have taxes are under control, but may worry about ending up in over their heads.
TurboTax offers excellent tax filing software that’s designed to make filing easy for everyone. With TurboTax, even filers with complex situations should be able to file on their own. However, this type of software comes with pricing drawbacks.
TurboTax is the most expensive tax software in the market. Users who appreciate TurboTax’s integrations may decide the software is worth the price. However, plenty of people can find great software at a lower price.
TurboTax’s Free filing is limited to people with W-2 and Social Security income. If you had unemployment income in 2021, you won't qualify (even though you did qualify in 2020). People with HSAs and child care expenses won’t qualify for the free filing option. And upgrading is expensive.
Audit support is included with TurboTax Free. But users who have to use the Deluxe level or higher will need to pay for MAX support to get this benefit, which costs $60. This costs more than the price of the FreeTaxUSA software which includes audit support. TurboTax has four pricing tiers, aligning to four distinct tax situations. Prices between the tiers increase sharply, but some groups will still find the software to be worth every penny.
Be aware that TurboTax tends to adjust prices throughout the tax season. December and January are generally the best time to lock in low rates. The steepest discounts tend to go away by March. Filers who wait until April typically pay the most. TurboTax is a leader in usability and functionality, but the superior experience comes with a high price tag. TurboTax includes very little on its free tier, and the next tier clocks in at over $100 when adding State and Federal filing. In many cases, filers don’t need everything that TurboTax has to offer. Less expensive solutions such as TaxSlayer or FreeTaxUSA often make more sense than TurboTax. However, TurboTax is the number one choice for crypto traders, stock traders, and rental property owners who can benefit from the usability.
Users can access multiple levels of support from TurboTax. For basic software-related questions, you can select the Help icon from the software menu to open the "TurboTax Assistant." From there, you can ask questions and find relevant help articles. This year, users who qualify for TurboTax’s Free tier (for simple tax returns only) and file before March 31, 2022 can receive Free “Live Assistance” from enrolled agents or CPAs. However, all paid users (Deluxe Edition or higher) will need to pay for the TurboTax Live add-on to receive support from these tax experts. Finally, if you want an expert to handle everything for you from beginning to end, you can now choose TurboTax Live Full Service and simply hand off your tax documents to one of TurboTax's professional tax preparers. TurboTax is a leading software company that focuses on data privacy and security. It encrypts all information at rest and requires Multi-Factor authentication. TurboTax consistently improves the login process to make it easy, but secure. It requires users to change passwords regularly. Although TurboTax has appropriate security measures in place, it's still a valuable target for hackers seeking personal and financial information. And the company updated its security measures in response to a vulnerability exposed in a January 2021 attack. We always recommend you use the online version of tax software (versus using a disk and installing it on your computer). Your data is usually safer online, and it's always saved - so if your computer crashes, you don't lose any of your hard work. TurboTax Online: The easiest way to buy TurboTax is online through their website here. You can select the plan that works for you, or you can start at any level and you'll be guided if your tax return requires an update to a higher level. Remember: you only pay when you file so try it out and see! Amazon: Amazon is currently offering an Amazon Exclusive where you can get a Federal and State return with one Federal e-File included. Check out the Amazon deal here. Retail Stores: Many retail stores will also carry TurboTax for at least a few months, typically starting in December through April. You can find it at Target, Costco, WalMart, OfficeDepot, and more. TurboTax consistently sets the standard for tax software usability. It's easy to use and keeps filers motivated to push through to the end. Even more importantly, TurboTax’s partnerships and integrations automate large portions of the tax filing process for many users. If it weren’t for the cost, TurboTax would be the top choice for all filers. But lower-priced options like TaxSlayer Classic or FreeTaxUSA may be better options for many filers, and H&R Block Premium is great for side hustlers. We recommend TurboTax for landlords, Coinbase users and crypto-traders, and most stock traders. Folks in these camps are likely to agree that the time saved is worth the extra cost. Get started with TurboTax here >> Here are some common questions we get about TurboTax every year: Can TurboTax Online help me file my crypto investments? Absolutely! TurboTax has a built-in integration with Coinbase that allows a direct import of all transactions from Coinbase. It is also an official partner with CoinLedger (formerly CrypoTrader.tax) and allows imports from sources like CoinTracker. Can I request my stimulus check through TurboTax Online? Yes, TurboTax continues to support the Rebate Recovery Credit in 2022. However, this credit only applies to the third stimulus payment which was issued in 2021. If you didn’t receive your first two stimulus payments (issued in 2020), you will need to file a 2020 tax return which requires filing an Amended Return or using the IRS Free Fillable forms. I didn’t receive the full amount for Advanced Child Tax Credit Payments. Can TurboTax help me get the rest? Yes, TurboTax specifically emphasizes the Advanced Child Tax Credit Payments in its initial interview. This helps users prepare to enter the necessary info throughout filing. If a user didn’t receive the correct amount, TurboTax will ensure that filers get the right amount via the Recovery Rebate Credit. The funds will be lumped in with the rest of the tax refund. DoesTurboTax offer refund advance loans? TurboTax is offering refund advance loans up to $4,000 this year. Refund advance loans are paid on a Credit Karma Visa® Debit Card. The loans are 0% interest loans, and the loans are repaid automatically as soon as the IRS refunds your money. Does TurboTax offer any deals on refunds? TurboTax Online software isn’t currently advertising any specific refund deals. However, certain downloadable software packages from Amazon advertise a 3% refund boost when users accept their refund on Amazon Gift Cards. Is TurboTax Better Than H&R Block? It depends. We found H&R Block to be better on price, and pretty good on usability. TurboTax does offer one of the easiest to use interfaces, though, and it can make tax filing easy.
Summary TurboTax is one of the best and easiest-to-use tax software; but it’s also one of the most expensive.
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 Hannah is a wife, mom, and described personal finance geek. She excels with spreadsheets (and puns)! She regularly explores in-depth financial topics and enjoys looking at the latest tools and trends with money. |
Why won't turbotax let me file my taxes 2022
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