What is TurboTax?
TurboTax guides individuals through their income tax returns by asking plain-language questions and filling in the required forms from the answers. In the United States it prepares federal and state returns, and TurboTax Canada handles federal and provincial returns. It can import wage and investment documents, checks a return for errors and missing information, and files it electronically. Customers work in a browser or mobile app with TurboTax Online, or install TurboTax Desktop on a Windows or Mac computer.
Intuit sells TurboTax in tiers. Free Edition handles simple Form 1040 returns only, which Intuit says about 37 percent of filers qualify for, while Deluxe and Premium add support for itemized deductions, investments, rental property and self-employment income. For people who want human help, TurboTax Expert Assist offers on-demand access to tax experts and a review before filing, and TurboTax Expert Full Service assigns a dedicated expert who prepares and files the return, online or at a local office in some areas. These assisted services, long marketed under the TurboTax Live name, made up 53 percent of TurboTax revenue in fiscal 2026.
Intuit Assist, the company’s generative AI assistant, answers tax questions as customers prepare their returns, and members of Credit Karma can start TurboTax from inside that app. TurboTax brought in about $5.3 billion in Intuit’s 2026 fiscal year, when Intuit counted roughly 39 million US federal TurboTax units, 2 percent fewer than a year earlier. It competes with H&R Block, TaxAct and other tax software, and with the IRS Free File program; the IRS’s own Direct File service, which launched in 2024, was not offered in the 2026 filing season.
Key features of TurboTax
- 01
Interview-style preparation
TurboTax asks everyday questions about income, family, homes and expenses, then completes the matching federal and state forms and schedules in the background, so most filers never work with tax forms directly.
- 02
Document import
Filers can photograph W-2 wage statements or import them from participating employers and payroll providers, and pull 1099 investment data from participating financial institutions, reducing manual data entry.
- 03
Error checks and e-filing
Before filing, TurboTax reviews a return for errors, missing entries and inconsistencies, then submits federal and state returns electronically and shows whether tax agencies have accepted them.
- 04
TurboTax Expert Assist
Customers get on-demand help from tax experts, including CPAs and enrolled agents, who answer questions and can review the return before it is filed.
- 05
TurboTax Expert Full Service
A dedicated tax expert prepares and files the whole return after the customer shares documents, working online or, where available, with the customer in person at a local office.
- 06
Intuit Assist
Intuit’s generative AI assistant answers tax questions in plain language while customers work through their returns, alongside other AI-driven features that personalize the filing process.
- 07
Refund and money products
Filing-related options include early access to federal tax refunds, loans that let customers file now and pay later, and Credit Karma Money checking and savings accounts offered through a partner bank.
- 08
Desktop software
TurboTax Desktop installs on Windows and Mac computers and stores tax data locally, which appeals to filers who prefer not to prepare their returns in a web browser.
Who uses TurboTax?
- Individuals and families with wage income prepare and e-file federal and state returns on their own, often starting with Free Edition or Deluxe.
- Freelancers, gig workers and small landlords use Premium to report self-employment income, business expenses, investments and rental property.
- Filers who want reassurance pay for Expert Assist to ask questions or have a tax professional review their return before submitting it.
- Busy households hand their documents to a TurboTax expert through Expert Full Service, online or at a local office where one is available.
- Canadians use TurboTax Canada, formerly sold as QuickTax, to prepare and file federal and provincial returns.
History of TurboTax
TurboTax began outside Intuit. Programmer Michael A. Chipman developed it at ChipSoft, a San Diego company, and it was first released in 1984. Intuit, the maker of Quicken, bought ChipSoft in 1993 for about $225 million, the same year it went public, and tax preparation became a core Intuit business alongside Quicken and QuickBooks. Intuit’s consumer tax group is still based in San Diego, and the Canadian product, once sold as QuickTax, now carries the TurboTax name.
As filing moved online, TurboTax’s free offers drew scrutiny. A 2019 ProPublica investigation reported that Intuit steered eligible filers away from its IRS Free File version toward paid products, and Intuit left the Free File program after the 2021 filing season. In 2022 it agreed to a $141 million settlement with all 50 states over its advertising of free filing. The Federal Trade Commission issued an order in 2024 restricting its free claims, but the Fifth Circuit Court of Appeals vacated that order in March 2026, ruling that such claims must be decided in federal court rather than by the agency itself.
- 1984
ChipSoft releases TurboTax, developed by programmer Michael A. Chipman.
- 1993
Intuit acquires ChipSoft, bringing TurboTax together with Quicken and QuickBooks.
- 2021
Intuit withdraws from the IRS Free File program after the filing season ends.
- 2022
Intuit agrees to a $141 million settlement with all 50 states over free filing advertisements.
- 2026
A federal appeals court vacates the FTC’s 2024 order limiting TurboTax’s free claims.
TurboTax pricing
Pricing modelFreemium
Free Edition covers simple Form 1040 returns only; Deluxe, Premium and expert-assisted tiers are paid when filing, and state returns usually cost extra.
Prices change often. Check the official TurboTax website for current plans.
TurboTax alternatives
Well-known alternativesH&R Block, TaxAct, FreeTaxUSA, TaxSlayer and Cash App Taxes
TurboTax: frequently asked questions
Who makes TurboTax?
TurboTax is made by Intuit, the Mountain View, California, financial software company that also owns QuickBooks, Credit Karma and Mailchimp. The software was created at ChipSoft, a San Diego company that Intuit acquired in 1993, and Intuit’s consumer tax business is still based in San Diego.
What is TurboTax used for?
TurboTax is used to prepare and electronically file personal income tax returns. In the United States it handles federal and state returns, and TurboTax Canada handles federal and provincial returns. People use it on their own, with on-demand help from tax experts, or by handing the entire return to an expert.
Is TurboTax free?
Only for some filers. TurboTax Free Edition covers simple Form 1040 returns, which Intuit says about 37 percent of filers qualify for. Returns with itemized deductions, investment or rental income, self-employment income or expert help require paid tiers. Intuit left the IRS Free File program in 2021, so it no longer offers a Free File version.
When was TurboTax released?
TurboTax was first released in 1984 by ChipSoft, the San Diego company where Michael A. Chipman developed it. Intuit acquired ChipSoft in 1993, and TurboTax has been one of its core products ever since. Intuit updates the software every year to reflect changes in tax law and tax forms.
Does TurboTax offer help from tax professionals?
Yes. TurboTax Expert Assist lets filers ask tax experts, including CPAs and enrolled agents, questions and get a review before filing, while TurboTax Expert Full Service assigns a dedicated expert to prepare and file the return, online or at a local office in some areas. These assisted services produced 53 percent of TurboTax revenue in fiscal 2026.
Sources
- TurboTax Online products, Intuit turbotax.intuit.com
- Intuit reports fourth quarter and full year fiscal 2026 results investors.intuit.com
- Intuit v. Federal Trade Commission, Fifth Circuit (2026), Justia law.justia.com
- Direct File won’t happen in 2026, IRS tells states, Nextgov/FCW nextgov.com
- TurboTax, Wikipedia en.wikipedia.org
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