TurboTax review: Is Turbo Tax good to file my taxes?

TurboTax can be an easy but not necessarily cost-effective way to file your taxes. 

Table of Contents:

Is TurboTax safe?

What are the cons of TurboTax?

Does TurboTax take money from your refund?

Is it better to buy TurboTax or use it online?

Is TurboTax really free?

How much does it cost to file with TurboTax?

How long does it take to do taxes on TurboTax?

How do I use TurboTax?

Does TurboTax have physical locations?

Does TurboTax Online include state taxes?

Why is TurboTax charging me $40?

Why is TurboTax charging me $120?

How do I avoid paying TurboTax fees?

Does TurboTax charge you for direct deposit?

Why is TurboTax charging me to file my taxes?

Does my tax refund go to TurboTax first?

How much does it cost to e-file a state return with TurboTax?

How many returns can I file with TurboTax?

Is TurboTax safe?

Turbo tax has procedures in place to keep your information secure with data encryption. Apart from the data encryption it also needs users to go through multi-factor authentication every time they log in. This helps ensure the identity of the person using the account.

For extra security and safety, they also have a designated page on their website that describes the steps that users can take to ensure the security of their accounts. These steps include:

1. Never share or write down your password
2. Only access the platform from a secure connection
3. Restrict unauthorized usage and access to your computer
4. Securely back up all of your tax information

What are the cons of TurboTax?

While TurboTax can make filing your taxes that much easier, there are also a number of cases in which using this software may prove to be more harm than good. This in part is because every tax client has completely different needs as they need to file taxes for their unique situation. 

The disadvantages of using TurboTax:

• Can be pricier than other tax software options
• If you use the software incorrectly you may be hit with multiple IRS Letters, Audits, Amendments, and Penalties
• You might miss deductions or over deduct
• You are responsible for inputting all of your information correctly
• Tax research falls in the hands of the client as they will need to figure out all of the answers to their questions and legislations that they can use to their advantage

Does TurboTax take money from your refund?

If you have selected for the TurboTax fees to be taken out of your federal refund, then after your tax refund is deposited back to your bank account you may notice that an amount is already subtracted from your refund. Essentially this is how that works: 

1. Payment for your TurboTax fees is selected to be paid out of your federal refund

2. After your refund has been made the money will first be deposited into a temporary bank account

3. TurboTax will take its cut

4. Your refund will be deposited to your actual account

Is it better to buy TurboTax or use it online?

TurboTax Online comes with many benefits. Currently, it appears to be the main product promoted by TurboTax, and as such many users have noted that the online version is more frequently updated. What’s more, using the online version will mean that you will be able to file your taxes from any computer or mobile device that has an internet connection. This is why according to TurboTax 75% of their customers tend to choose the e-filing version provided by the online platform rather than the actual software.

Desktop TurboTax CD/Download is different from the online version as it will be tied to the personal computer that you installed the software on. This means that all of your information will also be stored on the hard drive of your device. On the one hand, this could be seen as more secure as your tax information is not widely available online, but on the other hand, you are only going to be able to access it when you are using your computer that has TurboTax installed on it. The TurboTax download includes the tax preparation fee for one state, the state tax prep comes at an additional cost for those users that choose TurboTax Basic and Business. You are also able to create an unlimited number of federal tax returns, and e-file up to five at no charge. You can print your tax returns as many times as you want.

According to the official TurboTax website if you are planning on using this software to file the tax returns from many different people then the desktop version may be best, as it is a better value for money than the online version.

Is TurboTax really free?

There are a few cases where TurboTax may be free to use for you, or at least its fees may be refundable. However, for the most part, TurboTax is not necessarily a free-to-use tool especially when it comes to the entirety of your tax needs. What’s more, it was recently announced by the IRS that TurboTax has chosen not to renew its participation in the IRS Free File Program. This means that people who may have previously been able to use TurboTax for free will not be able to do so in 2022. 

How much does it cost to file with TurboTax?

The TurboTax pricing structure will vary depending on your situation. If you are choosing to file your taxes on your own using TurboTax then you could pay anywhere between $0 and $89 for your federal return, $0 to $39 for your state return, and $0 to $128 for your Federal and State return together. Using the computer software will usually range in price from $40 to $110 and taking advantage of their full-service experts could lead to you spending as much as $308 on your tax filing. This means that depending on your situation TurboTax could prove to be quite a costly software or platform to use for filing your taxes.  

How long does it take to do taxes on TurboTax?

How long it will take you to file your taxes will completely depend on the pre-planning that you have done. With TurboTax, you are completely responsible for filing all of the correct data and for choosing all of the correct options for your financial situation. In reality, this could mean that you may have to take hours to plan how to file your taxes before you ever enter the TurboTax platform. In general, the average American citizen will spend between 8 and 10 hours preparing and filing their taxes. 

How do I use TurboTax?

If this is your first-time using TurboTax you will first need to sign up using an email address. After that, you will be called to answer several questions about your tax information. Throughout the process, it will guide you to input the correct information and even provide you with helpful articles for filing your taxes. Once you have added all of your information the platform will check that everything regarding your tax return form is in place. Once you have everything in place you can either print your form and mail it in to file it or you can e-file it. 

Does TurboTax have physical locations?

TurboTax can be used either online or through the desktop software. There is no TurboTax location that you can visit and file your taxes. 

Does TurboTax Online include state taxes?

TurboTax online, much like the software version, includes both federal and state filing options. So, you can file your state taxes online with ease. 

Why is TurboTax charging me $40?

Depending on how long you have been using TurboTax the $40 could be one of two things: 

1. The fee for TurboTax Deluxe

2. The refund processing fee, this is when you pay for your TurboTax fees from your refund

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Why is TurboTax charging me $120?

If you are charged $120 you are most likely using TurboTax Deluxe for both your Federal and state tax filing and as such you are charged fees for both. 

How do I avoid paying TurboTax fees?

As TurboTax 2022 is not participating in the Free File program any longer it is highly unlikely that you will be able to avoid paying the fee required for the usage of their services. However, if you are only looking to avoid paying the TurboTax fee out of your refund then you could choose to pay it ahead of time using a debit or credit card. 

Does TurboTax charge you for direct deposit?

According to their website, TurboTax does not charge you based on the method you have selected for your refund. This means that you will not be charged for your direct deposit. 

Why is TurboTax charging me to file my taxes?

TurboTax has fees associated with their service, therefore if you choose to file your taxes using their platform you will also be called to pay the fee associated with the taxes that you are filing. Depending on whether you choose to pay that fee ahead of time using a credit or debit card, or once you have received your refund you will be charged at different times. As of 2022 TurboTax is no longer a part of the IRS Free File Program so if you were previously able to file your taxes for free that does not mean that you will still be able to file them for free in the coming year. 

Does my tax refund go to TurboTax first?

TurboTax does not handle your refund. However, if you have chosen to pay your TurboTax fee from your refund, then the Santa Barbara Tax Products Group, LLC, is the third party that will set up a temporary account and handles your Refund processing. After they have deducted the TurboTax fee, they will return your remaining refund to your account of choice. 

How much does it cost to e -file a state return with TurboTax?

If you are using the desktop version of TurboTax then there will be a $19.99 fee to e-file your tax return. However, if you are filing your state return through the online platform then the fees that you will need to pay are different. What’s more, there is no separate fee that you will need to pay to e-file your taxes, instead, that will be included in the general fee that you will pay for the service of filing your state taxes. Depending on how much assistance you will need when filing your taxes, the amount that you will need to pay will also vary. 

How many returns can I file with TurboTax?

If you are using Online TurboTax then you can file as many returns as you want, so long as you pay the individual fee for each one of them. Each return will not only need its own fee payment but it will also need for each user ID and account to be separate. You cannot use one account to file multiple tax returns as each tax return will overwrite the previous return that was made through that account. 

The Desktop version of TurboTax on the other hand allows you to prepare as many returns as you need. However, you will not be able to e-file all of them unless you pay an extra fee. If you choose to not e-file then the software does provide you with the option to print out all of the relevant tax returns and from there you can file them regularly. Since the desktop version requires a one-time purchase of the software and no additional fees it is often considered to be the most cost-effective option for those who have to file multiple returns for family members. 

Summary

TurboTax can be an easy-to-use tool if you want to file all of your tax returns independently. The most important thing to be aware of when using this software to file your taxes is that there can be many fees associated with your tax return. What’s more, since you are responsible for inputting all the data you must carry out extensive research and preparation work to ensure that you are making all of the correct deductions.