Is TurboTax Free?

Key takeaways

• If you have a W-2 and plan to take a standard deduction, you may be able to file your taxes for free.
• IRS VITA program filers also qualify for free filing through TurboTax. 
• Some active military members can use TurboTax products for free.

TurboTax has helped 124 million Americans file their taxes for free in the past decade, more than all other tax prep software companies combined.

If you have a simple tax return (typically a 1040 with W-2 income, standard deduction, and limited credits), you may be able to file completely free. This also applies to qualifying active-duty and reserve military members.

Keep reading to learn more about how to use TurboTax for free, when you might have to pay, and the specific fees involved.

Who qualifies for free filing?

Approximately 37% of taxpayers qualify to file taxes with TurboTax for free. 

In this section, we’ll discuss more specifics for these filers.

Simple tax returns qualify for TurboTax Free Edition

Millions of Americans have filed state and federal taxes for free using the TurboTax Free Edition, which is specifically designed for taxpayers with simple tax returns.

A simple tax return may include:

• W-2 income
• Income from interest, dividends, or original issue discounts (1099-INT/1099-DIV/1099-OID) as long as they don’t require filing Schedule B
• Taking the IRS standard deduction

The only exception for tax credits or deductions is if your simple filing includes:

• Earned Income Tax Credit (EITC) 
• Child Tax Credit (CTC) 
• Student loan interest deduction, and Schedule 1-A (additional income and adjustments)
• Taxable qualified retirement plan distributions

Enlisted active duty and reserve military filers

Active duty and reservists of an enlisted rank (E-1 through E-9) with a W-2 from DFAS qualify for free TurboTax. Free filing is also available for those filing jointly with a non-military spouse.

This offer isn’t valid for:

• Warrant officers
• Commission officers
• Veterans 
• National Guard personnel
• Retirees

You can file taxes for free through any TurboTax Online product (except CD/desktop or TurboTax Experts). 

This includes:

• TurboTax Free Edition
• TurboTax Deluxe
• TurboTax Premium

To claim this discount, enter your W-2 information and verify your military rank when prompted within TurboTax Online. Your discount will be automatically applied when you’re ready to file. 

IRS Volunteer Income Tax Assistance (VITA) program filers

Those who qualify for the IRS Volunteer Income Tax Assistance (VITA) program can also file their taxes for free. 

Those who qualify generally meet at least one of the criteria: 

• Earn $67,000 or less annually
• Need help preparing their individual tax returns 
• Have a qualifying disability 
• Have limited English-speaking skills

VITA is primarily run by IRS-certified volunteers. These volunteers also offer tax counseling, along with free basic income tax return preparation.

What does free filing include?

TurboTax’s free filing includes: 

• $0 to file your federal and state tax return
• A “maximum refund, guaranteed” just like paid TurboTax editions
• A flexible tool, where you can start your return on one device, and finish on another, TurboTax will save your progress along the way

When you might need to use a paid version

If your tax situation has become more complicated, you might need to upgrade to a paid version. More complex situations typically call for the Deluxe version or higher. 

Some common reasons you might need to upgrade from Free Edition include: 

• Taking  itemized deductions using Schedule A 
• Earning 1099-NEC income from business, self-employment, or other non-W-2 work. 
• Earning income from rental properties or sale of stock (including crypto) 
• Earning unemployment income (reported on Form 1099-G) 
• Filing additional tax schedules (besides Form 1040) to claim certain tax credits or deductions 

How to file for free

If you qualify for a free filing, here’s how to get started:

1. Visit the TurboTax website (or TurboTax mobile app) and select “Start for Free” under the Free Edition option
2. Create an account (or sign in if you already have one)
3. Begin the guided interview to answer questions about your:
   1. Life
   2. Income sources
   3. Dependents, etc
4. Import, upload, or snap a photo of your W-2. TurboTax can auto-fill the relevant info, so you don’t have to type everything manually.
5. Provide additional info if needed, including:
   1. Student-loan interest
   2. Potential tax credits like EITC or Child Tax Credit
6. Review your return, and double-check your information
7. Choose e-file and submit

Tips to maximize your free filing

Here’s how to make the free filing even simpler and stress-free:

• Understand if you qualify before getting started. Double-check that you have a simple filing and are taking the standard deduction.
• Have all your documents ready before you get started, so you don’t waste time searching for the proper paperwork. 
• Don’t start a paid return by mistake. TurboTax has many landing pages. Look for “Free Edition” or “$0 federal, $0 state, $0 to file.” Starting in Deluxe/Premium automatically means paying at checkout.
• Use the W-2 import feature to avoid mistakes. Importing a W-2 reduces the chance of error. It also speeds up the process and helps keep the return within the simple-return criteria.

Examples of free filers

Let’s take a look at what TurboTax Free Edition might look like in real-world scenarios. 

Maya, 23, a recent college grad

Maya is working part-time at a retail store while finishing a certification program.

Maya qualifies for the free filing because she:

• Has only one W-2 from her part-time job
• Claims the standard deduction
• Paid interest on her federal student loans and wants to claim the student-loan interest deduction
• Isn’t itemizing, investing, freelancing, or reporting any complex credits

Frank, 68, retired on Social Security

Frank receives Social Security benefits plus a small amount of taxable interest from his savings account.

Frank qualifies for the free filing because:

• Social Security benefits alone often aren’t taxable
• His bank interest is minimal and doesn’t require Schedule B
• He takes the standard deduction
• There’s no itemizing, no retirement account distributions that require special forms, and no investment sales

Jordan, 35, a married active-duty military member

Jordan is  on active duty in the Army, enlisted as an E-5. He and his spouse file jointly. Their finances are more complex than a typical simple filer, but they still qualify for TurboTax’s free military access to higher-tier products.e about how to use TurboTax for free, when you might have to pay, and the specific fees involved.