Tax season often brings the same question: Is TurboTax really free? The answer isn’t a simple yes or no. TurboTax does offer a free option, but it comes with conditions. Knowing who qualifies and what’s included can save you frustration and unexpected costs when filing your taxes.
Let’s break down how TurboTax’s free services work this year, what types of returns qualify, and when you might have to pay.
TurboTax Free Edition: What Does It Cover?
TurboTax’s Free Edition is designed for people with simple tax returns. Think of it as a basic tool perfect for straightforward filings.
- Who qualifies: Typically, those filing a Form 1040 without extra schedules.
- Included income types: W-2 wages, unemployment income, Social Security benefits, and limited interest or dividend income.
- Simple credits: Earned Income Tax Credit (EITC), Child Tax Credit (CTC), and student loan interest deductions.
- Limits: No itemized deductions (Schedule A), no self-employment income, no rental property income, no capital gains from stock or crypto sales.
If your tax return is mostly about standard deductions and typical income sources, you can use the Free Edition and file both your federal and state returns without paying.
Photo by Nataliya Vaitkevich
When Does TurboTax Free Not Apply?
TurboTax's free offer doesn’t cover every tax situation. You’ll need to upgrade to a paid plan if:
- You claim itemized deductions using Schedule A.
- You earn income from self-employment and report it on Form 1099-NEC.
- You have rental income or business income.
- You sell stocks, bonds, or crypto with gains or losses.
- You want more complex credits or deductions beyond the basic ones allowed in Free Edition.
These situations require one of TurboTax’s paid packages like Deluxe, Premier, or Self-Employed, which range from around $80 to $220 or more depending on the level of support and features.
Special Free Filing Offers in 2025
TurboTax has some extra free filing programs for 2025 that might help more people file for free than usual.
- TurboTax Free App Offer: Filers who start and finish their return on the TurboTax mobile app by February 18, 2025, can file for free regardless of return complexity. This offer is for new TurboTax users who didn’t use it the previous year.
- Military and VITA Programs: Active-duty enlisted military personnel (E-1 to E-9) and IRS Volunteer Income Tax Assistance program participants qualify for free Federal and State filing regardless of complexity.
- Income Limits: General free filing for those with simple returns typically requires an adjusted gross income below certain limits (generally up to $84,000 or less for some offers).
These offers aim to expand access, but after certain deadlines or for more complex returns, fees apply.
Why TurboTax’s “Free” Claim Can Be Misleading
TurboTax advertises free filing, but many users find extra charges popping up in checkout. This has led to some legal challenges:
- In the past, TurboTax has been accused of promoting “free” filing but steering many users toward paid upgrades.
- The company settled multistate lawsuits over these practices.
- The fine print often sets strict eligibility for truly free filing, frustrating users with more complex returns.
Still, for those with simple tax situations, TurboTax Free Edition is genuinely free and easy to use.
Alternative Options for Truly Free Tax Filing
If you don’t qualify for TurboTax Free Edition, or want to avoid upgrade surprises, there are other paths:
- IRS Free File Program: Through the IRS, some taxpayers (usually under $73,000 AGI) can file federal taxes for free with partner software providers.
- FreeFillable Forms: IRS offers free online fillable tax forms for those confident handling returns without guidance.
- Other Tax Software: Check platforms like Credit Karma Tax, H&R Block Free Online, or Cash App Taxes, which sometimes offer free filing for more complex scenarios.
What Makes TurboTax Worth Considering?
Despite its limitations, TurboTax excels in user experience:
- Easy interview-style questions guide you step-by-step.
- Automatic import of W-2s and 1099s help reduce errors.
- Strong guarantees for accuracy and max refunds.
- Options for expert help with TurboTax Live (paid).
For many Americans with straightforward returns, TurboTax Free Edition or special free offers can save money and time.
Conclusion
Yes, TurboTax has a free version. But it’s mainly for simple tax returns with common credits and standard deductions. More complex filing needs usually come with fees. Special promotions and programs can expand free access in 2025, especially for military members and early mobile app filers.
Before starting, it helps to assess your tax situation honestly. If you fit the Free Edition profile, TurboTax can be a solid, no-cost choice. If not, expect to pay or explore other free options.
Knowing exactly when TurboTax is free and when it’s not keeps surprises at bay during tax season—and makes filing smoother.