Is a TurboTax Premium Worth It?
| Typical price | $89 ($71–$107) |
| Lifespan | ~1 years |
TurboTax Premium is one of the most popular tax filing software options on the market, but its high price point raises questions about its value proposition. With a typical price of $89, ranging from $71 to $107, it's essential to examine who this product is actually for and whether it's worth the investment.
Who it's actually for
TurboTax Premium is geared towards individuals with complex tax situations, such as freelancers, investors, or those with multiple sources of income. These users can benefit from the software's advanced features, including audit detection and correction, as well as priority customer support. For these users, the peace of mind that comes with knowing their taxes are handled correctly is invaluable.
Where it falls short
However, TurboTax Premium has some notable shortcomings. One significant failure mode is its handling of state tax returns. In some cases, users have reported being charged extra for state returns, even when they were led to believe it was included in the initial price. Additionally, the software's import features can be clunky, requiring manual entry of data that should be easily transferable from other financial institutions.
The math
The lifespan of TurboTax Premium is approximately one year, after which the software becomes outdated and a new version must be purchased. While time saved is negligible – guided tax filing reduces research time once per year, but not significantly – the real value lies in the money and stress saved by avoiding costly mistakes or audits. Considering the typical price of $89, the question remains whether this expense is justified for users who don't require the advanced features.
Verdict
TurboTax Premium is a worthwhile investment for those with complex tax situations who value peace of mind and are willing to pay for it. For everyone else, it's likely an unnecessary expense.
FAQ
What if I only have simple tax needs? If you have a straightforward tax situation, such as a single source of income and no investments, you may not need the advanced features of TurboTax Premium. In this case, a more basic version of the software or a competitor's product may be sufficient. Can I get a refund if I'm audited? TurboTax offers an audit support guarantee, which provides free assistance in the event of an audit. However, this does not necessarily mean you'll receive a refund for the software itself. Is TurboTax Premium compatible with my financial institutions? TurboTax Premium supports imports from many major financial institutions, but it's essential to check compatibility before purchasing to avoid any potential issues with manual data entry.