TurboTax uses an interactive question-and-answer format where AI tailors questions based on previous answers and tax law. The system explains tax concepts in plain language and only shows relevant questions.
Users can get real-time help from CPAs, EAs, or tax attorneys through on-screen video chat, screen sharing, and messaging. Experts can even take over and complete the return.
TurboTax automatically imports W-2s, 1099s, investment statements, and other tax documents from over 2 million employers and financial institutions using secure connections.
Year-round tools for tracking charitable donations, business expenses, and mileage. The ItsDeductible feature values donated items and maximizes charitable deductions.
Includes free audit guidance from tax professionals and, in higher-tier plans, Audit Defense where experts represent users before the IRS.
TurboTax guarantees 100% accurate calculations and promises to find every deduction and credit users qualify for, or pays any IRS penalties.
AI-powered review that scans completed returns for errors, missed deductions, and audit risks before filing, providing specific recommendations.
Employees with straightforward income from one or more W-2 jobs use TurboTax Free or Deluxe editions. The software imports W-2s automatically, asks about basic deductions like student loan interest or educator expenses, and determines eligibility for credits like the Earned Income Tax Credit. This simplifies what many find intimidating, ensuring accuracy and maximizing refunds with minimal effort.
Independent contractors, freelancers, and gig economy workers use TurboTax Self-Employed to handle Schedule C business income and expenses. The software helps track deductible expenses throughout the year, calculates quarterly estimated taxes, and identifies industry-specific deductions. This addresses the complexity of self-employment taxes that often intimidates solo entrepreneurs.
Investors and landlords use TurboTax Premier to report capital gains, dividends, interest, and rental income. The software handles complex forms like Schedule D for investments and Schedule E for rental properties, automatically importing data from brokerages. It helps navigate wash sale rules, depreciation, and passive activity losses that confuse many taxpayers.
Small business owners with more complex structures use TurboTax Business for partnerships, S-corps, and LLCs. The software guides them through business deductions, employee benefits, retirement plan contributions, and entity-specific tax considerations. This provides affordable professional-grade tax preparation without the cost of a full-service accountant.
Individuals experiencing significant life changes like marriage, divorce, home purchase, childbirth, or retirement use TurboTax to navigate the tax implications. The software asks targeted questions about these events and applies relevant tax laws, ensuring users claim all available benefits like first-time homebuyer credits or education savings plan deductions.
Taxpayers facing IRS audits or notices use TurboTax's audit support features. The software provides documentation from filed returns, helps prepare responses to IRS inquiries, and in higher tiers offers professional representation. This demystifies the audit process and provides expert guidance during stressful interactions with tax authorities.
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