TurboTax offers a free version for simple tax returns, while a paid version is required for complex returns. Add-on services like audit defense and tax preparation assistance are available for an additional fee.
TurboTax also provides a refund service, currently $40 for federal taxes and $45 for state taxes, which requires a fee.
Why is TurboTax Charging me $120?
The Difficult Tax Scenario
TurboTax provides tax preparation software ranging from the Free Edition to more complex editions such as Deluxe, Premier, and Self-Employed.
Each version is customised to a different tax scenario. If your tax situation is more complicated—for example, if you work as a freelancer, own rental property, or have considerable investment income TurboTax may need you to use a higher-tier version.
The Demand for More Forms
Tax preparation is not a one-size-fits-all endeavour. If you have multiple sources of income, itemised deductions, or investments, your return may necessitate the completion of additional forms and schedules.
TurboTax’s higher-tier editions, which are frequently cost at $120 or more, give the essential assistance for dealing with these difficulties.
Entrepreneurship and Self-Employment
TurboTax Self-Employed becomes the go-to option for self-employed people or small business owners. It provides specialised advice on business-related deductions, costs, and other complexities.
This knowledge comes at a premium price, usually approximately $120.
Fees for Filing with the State
The filing of state taxes is another element that can contribute to the $120 fee. While some versions include federal tax filing, state filing usually requires an extra charge.
This can increase to the entire cost depending on your state of residency.
Improved Features and Support
Higher-tier TurboTax editions frequently have greater features and support. This could include improved customer service, audit assistance, or the ability to input financial data from accounting software.
While these features might be quite beneficial, they also contribute to the greater price.