TurboTax offers a free version, but most people end up paying
TurboTax Free exists, but it covers only the simplest tax situations: single filers with W-2 income, no dependents, no investments, no side income, and no itemized deductions. If your return is more complex than that, TurboTax will not let you file for free through their free product — you will be moved to a paid tier.
The paid versions start at $120 for TurboTax Deluxe and go up to $220 for TurboTax Premier, depending on what your return needs. TurboTax also sells add-ons like state filing ($49 per state) and audit defense ($179 to $299). The company does not charge a single flat fee; the cost depends on which version you choose and what extras you add.
If you do not want to pay, you have other options. The IRS runs a free filing program through partners like IRS Free File, and nonprofit tax preparation sites like VITA (Volunteer Income Tax Assistance) prepare returns at no cost if your household income is below a certain threshold — usually around $60,000, though this varies by location and program.
Key Takeaways
- TurboTax Free is only for people with W-2 income, no dependents, and no investments or side income — most filers do not may have access to.
- If you do not may have access to for TurboTax Free, the paid versions range from $120 to $220 before state filing fees and add-ons.
- The IRS Free File program offers free filing through partner companies if your income is below a certain level, usually around $60,000.
- VITA sites prepare returns for free if your household income is under the income threshold, and you can find locations through the IRS website or by calling 211.
What TurboTax Free actually covers
TurboTax Free is designed for the most straightforward returns. You can use it if you are a single filer with only W-2 wages, no dependents, no rental income, no business income, no capital gains, and you take the standard deduction. If you have a spouse and file jointly, TurboTax Free does not apply — you move to Deluxe, which costs money.
The moment your return includes anything beyond basic W-2 income, TurboTax will tell you that you need to upgrade. This happens during the interview process, not at the end. You cannot start with TurboTax Free and then add a dependent halfway through; the software will catch it and require you to switch versions.
TurboTax also does not let you file state taxes for free through the free version. If you need to file a state return, you pay extra, usually $49 per state.
The cost of TurboTax paid versions
TurboTax offers three main paid tiers: Deluxe, Premier, and Self-Employed. Deluxe starts at $120 and handles itemized deductions, education credits, and some investment income. Premier costs $180 and adds support for rental income, capital gains, and more complex investment situations. Self-Employed is $220 and is built for people who run a business or have significant self-employment income.
These prices are the base cost for federal filing only. State filing is separate: $49 per state in most cases. If you need to file in two states, you pay $98 on top of your federal cost. TurboTax also sells add-ons like audit defense (which ranges from $179 to $299 depending on the level of support) and live tax professional review.
TurboTax frequently runs promotions, especially during tax season. You may see discounts of $20 to $40 off the listed price, but the base cost structure remains the same. The company also offers a money-back may provide: if you find a lower price elsewhere, they will match it.
IRS Free File as an alternative
The IRS Free File program is a partnership between the IRS and tax software companies. If your household income is below a certain threshold — usually around $60,000, though this varies by year and provider — you can file federal taxes for free through one of the IRS Free File partners. TurboTax is one of these partners, but so are other companies like H&R Block, TaxAct, and others.
To use IRS Free File, you go to IRS.gov/freefile, enter your income, and the site tells you which companies offer free filing for your situation. You then go directly to that company's website through the IRS link. Do not go to the company's main website; the free version is only available through the IRS Free File portal.
IRS Free File covers federal filing only. State filing is not included and usually costs extra, though some providers offer free state filing as part of their Free File agreement. Check the details for each provider before you start.
VITA: Free tax preparation through nonprofits
VITA (Volunteer Income Tax Assistance) is a network of nonprofit organizations and tax professionals who prepare returns for free. You do not use software; a person prepares your return for you. VITA is free if your household income is below the income threshold, which is usually around $60,000, though some sites serve higher incomes and some serve lower.
To find a VITA site near you, go to IRS.gov/vita or call 211 and ask for VITA. The IRS website has a locator tool where you enter your zip code and see which sites are open, their hours, and whether they require an appointment. Many VITA sites are busiest in March and April, so you may have a wait if you file late in the season.
VITA covers both federal and state filing at no cost. You bring your documents — W-2s, 1099s, receipts, proof of dependents — and the volunteer prepares your return. You review it, sign it, and the site files it electronically. There is no software cost, no state filing fee, and no add-ons.
Comparing the cost and complexity
| Option | Cost | Best for | State filing included? |
|---|---|---|---|
| TurboTax Free | $0 | Single filers with only W-2 income | No |
| IRS Free File (TurboTax or other) | $0 federal; state varies | Income below ~$60,000 | Varies by provider |
| VITA | $0 | Income below ~$60,000; complex situations | Yes |
| TurboTax Deluxe | $120 + $49/state | Itemized deductions, education credits | No (extra cost) |
| TurboTax Premier | $180 + $49/state | Rental income, capital gains | No (extra cost) |
When you should pay for TurboTax
You should consider paying for TurboTax if your return is too complex for the free version and you do not meet the income threshold for IRS Free File or VITA. This includes situations like rental income, significant investment income, self-employment income, or multiple dependents with education credits.
TurboTax also makes sense if you prefer to file on your own rather than work with a volunteer preparer, or if you want the audit defense add-on. Some people also choose TurboTax because they have used it before and know how it works, even if a free option is technically available.
If you are on a tight budget, VITA is almost always the better choice. You get a person to prepare your return, both federal and state filing are free, and there are no hidden costs. The only trade-off is that you have to go in person or wait for an appointment, and VITA sites are busiest in March and April.
Frequently Asked Questions
Can I use TurboTax Free if I have a dependent?
No. TurboTax Free is only for single filers with no dependents. If you have a dependent, you need to upgrade to Deluxe or another paid version. The software will catch this during the interview and require you to switch.
Does IRS Free File really cost nothing?
Federal filing through IRS Free File is free if your income is below the threshold. State filing may be free or may cost extra depending on which provider you use. Always check the provider's details before you start, and access Free File only through the IRS.gov/freefile portal, not through the company's main website.
What if my income is too high for VITA or IRS Free File?
If your income is above the threshold for free programs, you can use TurboTax or another paid software, or hire a tax professional. There is no income limit for paid software — you can use TurboTax at any income level.
Can I get a refund if I pay for TurboTax and then find a cheaper option?
TurboTax offers a money-back may provide if you find a lower price elsewhere. You have to find the lower price and contact TurboTax to request a refund of the difference. Check the terms on their website for the current policy.
Is VITA only for low-income people?
VITA is primarily for people with household income below around $60,000, though some sites serve higher incomes. Call 211 or check IRS.gov/vita to find sites in your area and ask about their income limits, as they vary by location.