TurboTax Business Review 2023

Bottom line: TurboTax is a gorgeous platform that makes small-business tax filing a piece of cake. But this ease of use comes with a hefty price tag: it starts at nearly $200 for both federal and state’s reporting (limited to one state). As a result, you’ll need a comfortable budget and a keen appreciation for simple, beginner-friendly software to make TurboTax work.

Still interested? Let’s see if TurboTax is right for you.

Let’s cut to the chase: if you’re looking for the lowest cost tax software, TurboTax isn’t for you. Starting at nearly $200 total to file federal and state taxes (for a single state), the platform exceeds the price of many competitors like H&R Block and eFile.com.

Still, the software impresses for the money. For starters, we regard TurboTax as one of the easiest, most comprehensive platforms to use. Simply put, if a Schedule C or a Form 720 sounds head-spinning, then TurboTax’s plain English point-and-click interface will save the day.

And for more experienced individuals, TurboTax also delivers tremendous value. Nearly every business type is covered, from sole proprietors to C corporations. Plus, people craving expert-led guidance can tap into TurboTax Premium Live for an extra fee. This pairs you up with a certified public accountant (CPA) who helps answer questions and decipher tricky situations, all digitally without the need to visit an office.

It’s not all peachy, though. As we mentioned before, TurboTax is pricey. Its $200 cost for federal and state filing for one state can be a bit much for a small business’s budget. And if you’re like many small-business owners, you’ll need to file multiple state returns, which cost $59 each with TurboTax. Add on the Live benefit, and you’re quickly hitting hundreds of dollars just for the privilege of a user-friendly tax filing experience.

There are other downsides to Intuit’s tax filing solution (more on that below), but the bottom line is TurboTax’s price tag is its most disenchanting con. As a result, you must value user-friendliness above almost anything else to make this expensive tax software worth it.

Let’s say you prefer to file your own taxes, but you’re craving the assistance of a professional. In that case, TurboTax Premium Live and Premium Live Full-Service are two premium options worth considering.

Both features involve a certified public accountant (CPA). However, there are two key differences:

• Premium Live: You do the work of preparing your taxes, but with a CPA on standby to answer questions and provide a final review before submission.
• Premium Live Full-Service: A CPA prepares and submits your taxes for you, giving you a completely hands-free experience.

Keep in mind that if you’d prefer to meet a CPA in person, TurboTax falls flat since there are no office locations to visit. This stands in contrast to H&R Block’s competing service called Block Advisors, which supports in-person visits at a local office.

Whether you run a barbershop or serve the oil and gas industry, TurboTax delivers tailored guidance unique to your industry.

For example, businesses with a vehicle fleet, such as taxi companies, are offered mileage, gas, wear and tear, and other common industry-specific deductions. Meanwhile, the software gracefully explains to oil and gas entities IRS Form 3468, which covers coal and gasification projects.

In total, the platform handles over 500 business-related tax deductions, ranging from broad to niche.

TurboTax guarantees it will deliver the lowest tax liability possible, resulting in either a smaller tax bill or an outright refund. The platform also promises 100% accuracy on all calculations, whether you file yourself or rely on a CPA’s help through the Premium Live or Premium Live Full-Service options.

Undeniably, this is reassuring, especially for novice business owners learning the taxation ropes. But it’s not unique since H&R Block, among others, also makes similar promises. Plus, even if you do discover that another tax platform would’ve offered a bigger refund, you’ll only receive a refund on TurboTax. There is no other compensation to back up this “guarantee.”

The platform’s centerpiece is its beautiful, user-friendly interface that anyone can quickly grasp. This is especially a blessing for small businesses, which often struggle with complex, head-spinning tax situations.

Specifically, the platform walks users through their taxes via intuitive point-and-click screens. If anything seems confusing, a side panel gushes with simple explanations. And if this isn’t enough to demystify the taxation process, then a company-moderated forum is available for further assistance.

Simply put, TurboTax is made with beginners in mind—no special knowledge is necessary.

Since California-based Intuit is the company behind TurboTax, the platform is well connected to other popular titles, such as QuickBooks and CreditKarma. Although other tax platforms can still plug into these products, only TurboTax does it natively without any frustrating hitches.

This seamless connection means taxpayers can avoid sinking hours into manually inputting financial information. For example, TurboTax can instantly pull an entire year’s worth of business data from QuickBooks with just a few clicks. No more punching in numbers or poring through Excel spreadsheets.

Remember that you’ll need to pay for Intuit’s other software titles. But the time savings gained from this direct integration can easily help mitigate the extra costs, of course.

It's hard to break up once you fall in love with TurboTax. That’s because the platform carries over information from past tax years, making it far easier to buy another year of the title instead of pursuing a competitor.

For example, a capital loss carryover is automatically calculated and filled out. Plus, since businesses tend to have the same types of expenses year after year, TurboTax automatically creates placeholders for these costs.

Certainly, this automated process doesn’t complete everything. But it’s still a pleasure to see TurboTax magically fill out large swaths of tax information in a pinch.

Remember how we marveled at TurboTax’s user interface? Well, there’s a not-so-nice side to it: an abundance of pesky upsells.

That’s right. Even with a triple-digit starting price, the platform still interrupts your tax filing quest to peddle various services. For example, TurboTax MAX, a tax audit assistance service, is advertised after the “Income” section. Meanwhile, the platform’s CPA-led “Live” feature is offered arbitrarily throughout the entire experience.

Although we’ve already touched on TurboTax’s high costs, it’s worth revisiting this aspect in detail.

As a reminder, the platform costs $129 for the Premium federal edition aimed at sole proprietors and independent contractors. All other entities, such as C corporations and limited liability corporations (LLCs), use TurboTax Business for $190. Both charge between $55 to $59 for each state tax return.

Let’s put some context on these figures.

Clearly, TurboTax is pricier than its competitors by a long shot. If you’re up to pay for a superbly simple, no-nonsense experience with an abundance of helpful resources. But if you’re simply seeking a tiny price tag, then Intuit’s tax solution won’t work for you.

TurboTax is a beautiful, user-friendly platform that makes tax filing a piece of cake. Even advanced tax filers will still reap value from the title’s support for over 500 industry-specific tax deductions, including obscure ones that are often overlooked.

But this user-centric goodness comes at a price. TurboTax is the most expensive among the competitors we analyzed. This high price means small-business owners must weigh the value of a stress-free tax season.

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We carefully analyzed TurboTax’s overall value for the money, ease of use, ability to support unusual tax situations, customer service quality, and support for complex business types, among other factors.

Disclaimer

At Business.org, our research is meant to offer general product and service recommendations. We don't guarantee that our suggestions will work best for each individual or business, so consider your unique needs when choosing products and services.