TurboTax’s “free” ads are everywhere during tax season, but here’s the reality — only about 37% of taxpayers actually qualify for their Free Edition. If you’re wondering whether you’re in that lucky group or if you’ll end up paying anyway, you’re asking the right question.

TurboTax Free Edition eligibility is pretty strict, and what looks “free” upfront can quickly turn into a paid service once you start entering your tax info. Before you dive in, it’s worth checking Groupon’s TurboTax discount codes for potential savings on their paid tiers.

Quick jump: Who qualifies | What’s covered vs. paid | If you don’t qualify | Why “free” was confusing | How to file for less | FAQ

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Who Actually Qualifies for Free Filing

TurboTax Free Edition works for simple Form 1040 returns only. Think of it like the basic cable package — it covers the essentials, but anything beyond that bumps you up to a paid plan.

If your tax life involves just a W-2 from your job, maybe some basic interest from your savings account, and you’re taking the standard deduction, you’re probably good. But if you freelance on the side, sold some stocks, or want to itemize deductions for that home office, you’ll need to upgrade.

Quick Quiz: Will You Actually File for Free?

Run through this before you start (it’ll save you the “wait…why is this no longer free?” moment):

• Your only income is from W-2 jobs (no freelancing or side gigs)
• You’re taking the standard deduction (not itemizing)
• You have basic interest/dividend income that doesn’t require Schedule B
• You’re claiming standard credits like the Child Tax Credit or Earned Income Tax Credit
• You don’t have rental property, business income, or stock sales

What’s Covered vs. What Costs Extra

Let’s get specific about what TurboTax Free Edition includes, because the details matter when you’re trying to avoid surprise charges.

Even something as simple as claiming a home office deduction or reporting income from a side gig will push you into a paid tier.¹

Your Options If You Don’t Qualify

If your tax situation is more complex than the free version covers, you’ve got a few paths forward.

TurboTax’s Paid Tiers

TurboTax offers several paid options for more complex returns. The exact pricing changes each year, but you’re typically looking at different levels based on your needs — from basic paid versions for simple itemizing to premium options for business owners and investors.

If you’re curious about current costs, you can see what TurboTax’s paid tiers actually cost in our detailed breakdown.

Free Alternatives Worth Checking

If you don’t qualify for TurboTax’s free version, you’re not stuck with their paid options. Other tax software companies have different eligibility requirements for their free tiers, and some might cover your situation without charge.

• The IRS also offers a Free File program with various software partners, though TurboTax is no longer part of this program.
• You can also compare TurboTax with H&R Block’s free options to see which might work better for your specific tax situation.

Why TurboTax’s “Free” Claims Were Misleading

There’s actually a legal reason why TurboTax’s “free” advertising has been confusing. The Federal Trade Commission sued Intuit (TurboTax’s parent company) for deceptive advertising around their free filing claims.

The FTC found that TurboTax’s marketing made it seem like their service was free for everyone, when in reality, most people ended up having to pay. As part of the settlement, Intuit agreed to pay $141 million in restitution to consumers who were charged for services that were advertised as free.

Now, the FTC requires Intuit to be more transparent about who actually qualifies for free filing. This is why you’re seeing more specific language about eligibility requirements in their current advertising.

How to File for Less (or Actually Free)

Here’s your game plan for getting your taxes done without overpaying:

• Start with the eligibility quiz above to see if you truly qualify for TurboTax Free Edition
• If you don’t qualify, check out other free options before committing to a paid service
• Consider whether you really need all the bells and whistles of premium tax software
• If you do go with a paid option, look for discounts and compare prices across different platforms

Remember, the goal is getting your taxes filed correctly and on time — not necessarily using the most expensive software with every feature imaginable.