TurboTax Review 2023: This Online Tax Software Still Dominates (2023)

FAQs

What is going on with TurboTax? ›

Intuit left the Free File program in October 2021, citing a desire to innovate beyond what the agreement would allow. In March 2022, during the first tax season in which TurboTax did not participate in the Free File program, the FTC sued Intuit over deceptive ads for its so-called “Free” edition.

In 2023, we named TurboTax our top pick for Best Overall Tax Software. TurboTax was also selected as Best Tax Software to Maximize Deductions, Best For Cryptocurrency Traders, Best for Virtual Tax Preparation, and Best for Tax Advance Refund Loans.

TurboTax cons

On the downside, TurboTax doesn't offer expert assistance with every package, so if you opt for the free and basic version, you may find yourself in need of more guidance along the way. There also aren't any physical locations like H&R Block and other similar services offer.

100% Accurate, Expert Approved Guarantee: If a TurboTax expert made an error while giving you specific tax advice, the company will take care of the IRS or state penalty and amend your return for free.

Now, TurboTax says the issue has been fixed (the IRS announced Friday afternoon that millions of payments were being rerouted to the correct bank accounts).

There is a glitch in the 2022 TurboTax Deluxe download version......it is not calculating mortgage interest in itemized deductions. If you are not getting the deduction, you must have marked the interest not used to buy build or improve your home. OR you checked the option to force the standard deduction.

Tax Return Access: Included with all TurboTax Free Edition, Deluxe, Premier, Self-Employed, Premium, TurboTax Live, TurboTax Live Full Service customers and access to up to the prior seven years of tax returns we have on file for you is available through 12/31/2024.

Because there isn't a way to update your prior-year tax software to handle the 2022 tax laws, you'll need to purchase TurboTax 2022 if you want to use TurboTax to prepare this year's taxes.

Is TurboTax just as good as an accountant? ›

The choice between TurboTax vs. a CPA when preparing your returns is often based on time, money and financial complexity. Both are good options, but most investors favor one or the other based on their personal needs and comfort level.

The Commission alleges that the company's ubiquitous advertisements touting their supposedly “free” products—some of which have consisted almost entirely of the word “free” spoken repeatedly—mislead consumers into believing that they can file their taxes for free with TurboTax.

Most people choose to use the online service. TurboTax reported that 80% of the returns it handled came from its online products. When you have a choice between buying the software you install on your computer and paying to use the service online, you are better off buying the software download.

TurboTax Tip: If you filed your taxes with a TurboTax CD/download product, your tax return should be stored on your computer, so you can print a copy at any time. If you use TurboTax Online, you can sign in and print copies of your tax return for free.

If we detect that your tax situation requires expanded coverage, like deductions for owning a home, unemployment income, or self-employment income, we'll prompt you to upgrade to a version that supports the forms you need so we can maximize your tax deductions and ensure you file an accurate return.

According to early IRS data, the average tax refund will be about 11% smaller in 2023 versus 2022, largely due to the end of pandemic-related tax credits and deductions.

As of March 17, the IRS reports the average refund amount (aka money taxpayers overpaid the government) in 2023 is $2,933. This is about an 11% drop from what the average refund amount was this time last year, which clocked in at $3,305. Subscribe to the Select Newsletter!

Possible reasons for the rejection include reporting the wrong amount on your tax return, inputting the wrong W-2 amounts when transferring the information electronically or just math errors.

Previous alerts of TurboTax account takeovers

TurboTax customers were previously targeted in at least three other series of account takeover attacks in 2014/2015 and again in 2019.

The IRS previously forecast that refund checks were likely to be lower in 2023 due to the expiration of pandemic-era federal payment programs, including stimulus checks and child-related tax and credit programs.

Can I sue TurboTax for messing up my taxes? ›

You can still fight back by suing TurboTax in small claims court, or using consumer arbitration.

TurboTax Live Assisted Basic is $0 through March 31, 2023 for simple tax returns only. You can see if you qualify here. Intuit is a proud supporter of US military members, veterans, and their families in their communities and overseas.

The Deluxe edition of TurboTax is designed to calculate line-item tax credits and deductions. With the Free Edition, you can only take the standard deduction and any above-the-line deductions and credits. TurboTax Deluxe lets you take itemized deductions and below-the-line credits.

The IRS announced that the IRS E-file open date began on January 23, 2023. You can file your taxes with TurboTax today! TurboTax is officially open and accepting e-filed returns.

Liberty Tax 2023 (Tax Year 2022)

You need TurboTax Premier ($89 for federal taxes) if you have to report investment income and rental property. TurboTax Self-Employed ($119 federal) lets you record income and expenses on a Schedule C and includes special guidance and features for self-employed individuals.

Tips for Choosing a Version of TurboTax

For deductions associated with stocks or rental properties, choosing the TurboTax Premier would be the best option. If you have a home business or are self-employed, TurboTax Home and Business would be ideal. If you want to save money in general, opt for the CD/Download versions.

If you qualify for credits or deductions not covered in the Basic plan that boost your refund, it could be worthwhile to upgrade to Deluxe. The Deluxe tier includes everything in the Basic version but also searches through more than 350 tax deductions and credits to find tax breaks that you qualify for.

Pay upfront using a credit or debit card instead of choosing to have the fees deducted from your federal refund to avoid that $39.99 fee.

That's OK — you can download your software directly from TurboTax. But, keep in mind, you can't use both the CD and the download.

Both TurboTax and H&R Block quietly left the Free File Alliance during the pandemic, the IRS says. You may still be able to file free through them for basic returns, but anything more complicated may trigger fees.

How hard is it to do taxes with TurboTax? ›

Although TurboTax isn't the cheapest tax filing option for most users, it's extremely user-friendly with a user interface and various features that make tax filing easy. If you want to make tax season even more hands-off, you can always upgrade to a full-service package.

TURBOTAX ONLINE GUARANTEES

Maximum Refund Guarantee / Maximum Tax Savings Guarantee - or Your Money Back – Individual Returns: If you get a larger refund or smaller tax due from another tax preparation method by filing an amended return, we'll refund the applicable TurboTax federal and/or state purchase price paid.

TurboTax MAX Is Worth Considering:

For around $50 TurboTax offers you additional peace of mind in the event of an IRS audit or theft of identity. Personally, I think MAX is worth considering, especially if you have complex taxes and potential red flags.

Both are good options, but most investors favor one or the other based on their personal needs and comfort level. For many, hiring a CPA is a wise choice to ensure that you take advantage of every tax deduction that you're eligible for.

TurboTax is only licensed for personal use, and it is not compliant with IRS regulations for paid preparers. Intuit offers ProSeries, ProConnect, and Lacerte Tax software, which are IRS-compliant for tax professionals who are filing multiple returns.

Military and civilian income—including combat pay, BAS and BAH. Military-related expenses—TurboTax will find every deduction you deserve.

The U.S. government is suing Intuit, alleging that the owner of the widely used tax filing software TurboTax is lying to customers by claiming the product is free and then steering them toward paid services and products.

TurboTax support can help you get your taxes done right

For Live Assisted programs, you'll have access to an expert and the option for a tax expert to review your return before you file it. With TurboTax Live Assisted Basic, these features are free for those with simple tax returns, if your taxes are filed by March 31.

Q: If I previously used TurboTax Desktop products, can I switch to TurboTax LIVE online this year? A: Yes, you can transfer your previous year's Desktop tax data file (with a filename extension . tax[year], such as . tax2019) into TurboTax Live Online Deluxe, Premier or Self-Employed for tax year 2020.

How many returns do you get with TurboTax online? ›

In TurboTax Online, you can prepare and e-file one federal and up to five associated state returns under the same account login (your account is your username, not your e-mail address). And you can file up to five federal returns under the same email.

You typically have three years to amend an issue on your tax returns, which means you'll want to keep those records for at least that long. Retaining your tax returns can also simplify your next filing. For many taxpayers, their income and taxes change very little from year to year.

Keep records for 3 years from the date you filed your original return or 2 years from the date you paid the tax, whichever is later, if you file a claim for credit or refund after you file your return. Keep records for 7 years if you file a claim for a loss from worthless securities or bad debt deduction.

Supporting documents include sales slips, paid bills, invoices, receipts, deposit slips, and canceled checks. These documents contain the information you need to record in your books. It is important to keep these documents because they support the entries in your books and on your tax return.

If you wish to file your taxes without upgrading to Deluxe, you can use the Clear and Start Over feature. Note: TurboTax Free Edition is intended for taxpayers with very simple returns (Form 1040EZ filers with the standard deduction), like first-time filers and students.

(If you're hoping to deduct the interest you paid on your mortgage, you'll want to go with TurboTax Deluxe.) TurboTax Deluxe includes a search of more than 350 tax deductions and credits to find all qualifying tax breaks.

Early or last-minute tax filing. If you file too early, some of the tax forms you need may not be finalized for handling yet by the IRS. This delays your refund since the IRS won't process a return until their software is ready to handle all necessary tax forms. But filing at the last minute can be just as problematic.

Verify that you have administrator rights on your computer and TurboTax is running as administrator: Right-click the TurboTax icon or setup icon and select Properties. In the Compatibility tab, select the Run this program as administrator box and select OK.

There are several situations where you won't be able to use the Pay With My Refund service, including: You're filing a paper return. You don't have a federal refund. Your federal refund isn't enough to cover the fees.

Why is my refund still processing TurboTax? ›

"Being processed", means the IRS must first process your return and then approve your refund. It's possible your tax return may require additional review and take longer.

Due to the ongoing impact of the COVID-19 pandemic, the IRS has a severe paperwork backlog. Your return includes any errors or is incomplete. You filed for the earned income tax credit or the additional child tax credit. By law, the IRS cannot issue your refund before mid-February.

In general, the IRS says that returns with refunds are processed and payments issued within 21 days, and often in as little as 10 days. For paper filers, this can take much longer. The IRS and tax professionals strongly encourage electronic filing.

Many taxpayers experienced slower than anticipated IRS tax refund processing speed or time for their 2020 and 2021 Refunds which may continue into 2023 for your 2022 Return.

What does it mean if my e-file status is “Pending”? This simply means your e-filed tax return was sent, but hasn't been accepted or rejected yet. It should generally get accepted or rejected within 24-48 hours of submitting.

Most refunds will be issued in less than 21 days. You can start checking the status of your refund within 24 hours after you have e-filed your return.

TurboTax gives you an estimated date for receiving your refund based on a 21 day average from your date of acceptance, but it can take longer. Once your federal return has been accepted by the IRS, only the IRS has any control.

It simply means that your e-filed return is being processed and that the government hasn't approved or rejected it yet. Sometimes return status does not update for several days or even longer. During this time, the government reviews your refund (processing).

Even after your pay those taxes, TurboTax will still say you have taxes due, that will never change. To verify that you have paid your taxes, you need to look on your bank or credit card statement where you paid your taxes and see that the money has been taken out of your account.

If you used TurboTax Online, simply log in to your account and select “Amend a return that was filed and accepted.” If you used our CD/download product, sign back into your return and select “Amend a filed return.” You must file a separate Form 1040-X for each tax return you are amending.

Should I be concerned that my tax refund is still being processed? ›

In the situation that your refund status changes from “we have received your tax return, and it is being processed” to “your tax return is still being processed,” it is likely that an issue or discrepancy that was detected in your tax return has been resolved.

We issue most refunds in less than 21 calendar days. However, if you filed on paper and expect a refund, it could take four weeks or more to process your return. Where's My Refund? has the most up to date information available about your refund.

Your return may be incomplete or have a math error requiring a manual review. Your return could have been flagged as fraudulent because of identity theft or fraud.