2026 Update: TurboTax Review — Great Tax Software With Live Support for a Premium Price

TurboTax is still the most widely used tax software in the country. For tax year 2025 (filed in 2026), it has made some real changes worth knowing before you pay — or decide to go elsewhere.

The product lineup has been simplified, there are new deductions under the One Big Beautiful Bill (OBBB), and a new AI layer has been added. Here is what actually changed and whether the cost is worth it.

TurboTax Pricing for 2025-2026

The old Premier and Self-Employed packages are gone. TurboTax has merged them into a single Premium tier, which removes the guesswork about which middle-tier package you actually need.

A few things worth flagging here. The Free tier only covers a basic Form 1040 with limited credits — it is a smaller group than people expect. If you have a brokerage account, rental income, or any freelance income, you are almost certainly in Deluxe or Premium territory.

State filing is $64 per state on all paid plans. If you worked in multiple states or moved during 2025, that stacks up fast.

If you are unsure which tier fits your situation, start with the DIY version — TurboTax will prompt you to upgrade if your return requires a higher tier.

What Is New for the 2025 Tax Year

The biggest changes in 2025 are not from TurboTax itself — they come from the One Big Beautiful Bill (OBBB), passed in 2025. TurboTax now handles all three of these new deductions:

Tips deduction: If you received tips at work in 2025, you can deduct up to $25,000 of that tip income. TurboTax walks you through eligibility in the income section.

100% bonus depreciation: If you are self-employed or own a business and placed equipment into service after January 19, 2025, you can deduct 100% of the cost in year one. This is significant for freelancers and small business owners who bought gear last year.

Permanent QBI deduction: The 20% Qualified Business Income deduction for pass-through businesses is now permanent under the OBBB, with expanded phase-in ranges — $75,000 for single filers, $150,000 for married filing jointly.

Beyond the OBBB, the standard annual inflation adjustments apply: higher standard deductions, updated tax brackets, and higher retirement contribution limits. TurboTax updates for all of these automatically.

Intuit Assist AI

TurboTax added Intuit Assist, a generative AI layer built into the filing experience. It interprets uploaded tax documents via photo, auto-classifies business expenses, and flags deductions you may have missed — including the QBI deduction and home office deduction for self-employed filers.

In my view this is most useful for Premium filers with mixed income (freelance plus W-2, or multiple 1099 sources). For simple W-2 filers it is mostly invisible. For self-employed filers it is a genuine time-saver.

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Why TurboTax Still Works Well

The core experience has not changed much — and that is mostly a compliment. TurboTax asks about your life situation (job type, homeownership, kids, investments) before mapping you to forms. It does not hand you a blank Form 1040 and expect you to know what you need.

The CompleteCheck review runs before you file, catching anything incomplete or inconsistent. The 100% accuracy guarantee still applies to calculation errors caused by the software, assuming you entered your information correctly.

You can pay TurboTax’s fee out of your federal refund rather than upfront — though this option carries a small additional charge. TurboTax also accepts PDF imports of prior year returns from competitors like H&R Block or TaxAct, so switching is straightforward.

Is TurboTax Worth the Cost?

The main criticism of TurboTax is the same as always: it is expensive compared to competitors. At $139 for Premium plus $64 per state, a self-employed filer in one state is paying $203 just for the DIY version.

H&R Block and TaxAct offer comparable tiers at lower prices. If you are confident in your ability to file and do not need live expert access, you can save $50-$80 going elsewhere.

That said, if you are dealing with something new in 2025 — first year freelancing, sold investments, bought a home, received tips, or have OBBB deductions to navigate — TurboTax’s depth is usually worth the premium.

Common Issues to Watch Out For

I get questions about this a lot: people who assume they qualify for the Free tier and hit a wall mid-filing because they have a brokerage account or freelance income. Check eligibility before you start to avoid a surprise at the end.

The upsell prompts during filing are real and persistent. TurboTax will suggest Live Assisted or Full Service at multiple points. If you do not need it, click past — you are not required to upgrade.

Also watch the state costs if you have multi-state income. Worked remotely with an employer in a different state, moved mid-year, or own rental property out of state — each of those can require a separate state return at $64 each.

Audit Support

Free audit guidance is included for all TurboTax filers — they will help you understand the IRS process. This is guidance only, not full representation.

For full IRS representation, the optional MAX audit defense add-on covers identity theft monitoring, loss insurance, and a tax professional who handles the IRS on your behalf. It is available at checkout — worth considering if you have a complex return or have been audited before.

When Is TurboTax Available?

TurboTax for tax year 2025 became available in late December 2025. The IRS typically begins accepting returns in mid-to-late January. I would wait until then to file — last-minute IRS form changes can affect your return, and it is worth having all your documents (W-2s, 1099s) in hand first.

Also see the full IRS refund schedule for expected deposit dates once you file.