HomeTop StoriesDecoding TurboTax: Which TurboTax Version Is Best for You in 2023?

Decoding TurboTax: Which TurboTax Version Is Best for You in 2023?

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Time is running out for the 2023 tax season – your federal income tax return must be filed by April 18. If you haven’t started your taxes yet, a program like TurboTax can help you find additional deductions and calculate your taxes for you. TurboTax can even autofill your address and employer information from last year, making it much easier and faster.

Don’t delay starting your taxes any longer: You can get your tax refund in less than three weeks if you file today.

Top products in this article:

TurboTax Free Edition (Only for basic tax returns. Not all taxpayers are eligible.)

TurboTax Deluxe $59

In 2020, more than 195 million tax returns and other tax forms were filed electronically; 14 million of those tax returns were filed with some version of TurboTax. The tax software aims to simplify the tax filing process and provide customers with great tax benefits they wouldn’t otherwise find on their own. If you are one of the many Americans considering TurboTax as a tool to file taxes correctly and on time, there are a few things you should know file your tax return through the software.

When are taxes due in 2023?

Tuesday, April 18, 2023 is the tax filing deadline for most Americans.

On January 11, the IRS has announced that California is taking storm victims now have until May 15, 2023 to file various federal tax returns for individuals and businesses and make tax payments. The IRS offers the extension to people in areas designated by the Federal Emergency Management Agency (FEMA). Included areas cover much of the state. Do you think you qualify for an extension? Click here to see the full list.

Need more time to submit? According to the IRS, you must request an extension of the filing deadline. To get an automatic 6-month extension for filing your return, you must file Form 4868. An extension of time to submit is not an extension of time to pay. You may be subject to a late payment penalty for tax not paid by the original due date of your return.

According to the IRS, most refunds are processed within six to eight weeks when you file a paper application, or within three weeks when you choose to have your refund deposited immediately.

Which version of TurboTax is right for you?

There are four main types of TurboTax to choose from.

Your choice should match your lifestyle. For example, if you are a taxpayer with cryptocurrency investments, there is a clear TurboTax version for you. Are you self-employed? Then don’t choose the option for taxpayers who document all of their income with a W-2.

TurboTax Free Edition

This free version of TurboTax is a great option for taxpayers whose income comes largely from W-2s and savings in the bank. The tax software includes a free filing of your simple federal and state tax returns. According to TurboTax, the free edition covers W-2 income, Earned Income Tax Credit (EIC), and child tax credits, plus your standard deduction, student loan interest deduction, and limited interest and dividend reporting (1099-INT, 1099-DIV).

It’s worth noting that TurboTax Free Edition cannot handle 1099-G unemployment income or itemized deductions.

The Federal Trade Commission (FTC) is currently to sue TurboTax’s parent company, Intuit, alleges that the software company is misleading people with its free tax filing promotions. (Intuit, for its part, says it follows IRS rules and called the allegations “simply not credible”.)

Users always get help from TurboTax’s online community of TurboTax specialists. Afraid that something will go wrong? TurboTax Free Edition includes guidance in the event of an audit, backed by TurboTax’s audit support guarantee.

The deadline for filing via TurboTax Free Edition is March 31, 2023. For simple tax returns only, not all taxpayers are eligible.

TurboTax Free Edition

Turbo Tax Deluxe

TurboTax Deluxe includes all the features of TurboTax Free Edition, plus a few extras. It is a good option for homeowners. This TurboTax version provides homeowners with step-by-step guidance on how to turn their home investment into a major tax break. (If you’re hoping to deduct the interest you paid on your mortgage, you’ll want to go for TurboTax Deluxe.)

TurboTax Deluxe includes a search of over 350 tax deductions and credits to find all eligible tax credits. And should an unexpected form arrive late, this software allows you to amend your 2021 tax return online, up to three years after it is filed and accepted by the IRS.

TurboTax Deluxe includes one-on-one support from live TurboTax product specialists.

TurboTax Deluxe $59

TurboTax Deluxe can be upgraded to TurboTax Live Deluxe. The upgrades give customers access to unlimited tax advice and a final assessment by an expert.

TurboTax Live Deluxe, $129

TurboTax Prime

TurboTax Premier has all the features of TurboTax Deluxe, but is also great for taxpayers with investment income such as stocks, cryptocurrency, bonds, ESPPs, robo-investing, and rental income. If you’ve been buying and selling on Robinhood or Coinbase – especially selling, which is a taxable event – TurboTax Premier is probably the version for you. It makes reporting these trades easy, even if there are many — the software can import thousands of trades directly from brokers.

Similarly, if you own your home and rent out a spare room to a friend or relative, this version will help you report income and find general deductions that can save you hundreds or even thousands of dollars.

Like all TurboTax software, Premier strives to provide customers with the greatest possible tax benefit. TurboTax Premier searches over 450 tax deductions and credits to find eligible tax breaks.

TurboTax Premier, $89

TurboTax Premier can be upgraded to TurboTax Live Premier. The upgrades give customers access to unlimited tax advice and a final assessment by an expert.

TurboTax Live Premier, $179

TurboTax Self-Employed

TurboTax Self-Employed includes all the features of the other TurboTax versions, as well as some important extras for self-employed taxpayers. For example, if you have a freelance job or Doordash delivery, this is the TurboTax version for you.

Ideal for 1099-NEC incomes, this TurboTax version helps you fill out all relevant self-employment tax forms and also lets you know if a Schedule SE or “Self-Employment Tax” is required by the IRS.

This version of the tax software searches your transactions for industry-specific deductions, including real estate, ride-shares, delivery trips, online retail, and personal or professional services. If your company has employees, you can prepare and print unlimited W-2 and 1099 forms with this tax software.

TurboTax Self-Employed, $119

TurboTax Independents can be upgraded to TurboTax Live Independents. The upgrades give customers access to unlimited tax advice and a final assessment by an expert.

TurboTax Live Standalone, $209

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