A Complete Guide to TurboTax Software | 2025 Update

Executive Summary

TurboTax is used by millions of Americans each year to file federal and state tax returns, offering a range of online and desktop options tailored to different tax situations [1] [2].
The software’s intuitive, question-and-answer interface guides users through complex tax scenarios, reducing errors and maximizing deductions [3].
TurboTax supports advanced features such as auto-import of W-2s, 1099s, and even cryptocurrency transactions, making it a top choice for investors and self-employed professionals [2].
For tax and accounting firms, secure, reliable hosting solutions like Verito’s VeritSpace ensure TurboTax and other critical software remain available and compliant—even during peak tax season.
Verito’s managed IT services (VeritGuard) and integrated platform (VeritComplete) provide 24/7 support, proactive security, and seamless migrations, so your firm can focus on clients, not IT hassles.

What Is TurboTax Software?

TurboTax is a leading tax preparation software designed to help individuals and businesses file their federal and state income tax returns in the United States. Developed by Chipsoft in 1984 and later acquired by Intuit, TurboTax has become synonymous with user-friendly, accurate tax filing for millions of Americans [1] [2].

TurboTax stands out for its step-by-step guidance, which asks users simple questions about their financial situation and automatically applies relevant deductions and credits. The software is available both online and as a downloadable or CD-based product, with pricing and features that vary by version [1] [2].

TurboTax Online: Versions and Features

TurboTax Online offers several versions, each tailored to different tax needs. Here’s a clear comparison of the main options:

Version	Best For	Key Features	Price (Federal, State Extra)
Free Edition	Simple tax returns	$0 to file, W-2 import, tax credits for dependents	$0
Deluxe	Homeowners, itemizers	350+ deductions, mortgage/property tax help, donation calculator	$59
Premier	Investors, rental property	All Deluxe features, investment income import, rental property guidance	$89
Self-Employed	Freelancers, gig workers	All Premier features, Schedule C help, Square payment import	$119

TurboTax also offers expert support through TurboTax Live and Full Service options, where certified tax professionals can answer questions or complete your return for you [1] [2].

How TurboTax Works

TurboTax simplifies tax preparation by guiding users through a series of questions about their income, expenses, and life changes. Based on your answers, the software identifies applicable deductions and credits, then fills out the necessary tax forms automatically [3].

Question-and-Answer Guidance: TurboTax uses plain language and pop-up explanations to help users understand tax terms and requirements [3].
Document Import: You can import W-2s, 1099s, and other tax documents directly from employers or financial institutions, reducing manual entry errors [2].
Mobile Access: TurboTax is available on computers, tablets, and smartphones, so you can work on your return from anywhere [2].
Expert Help: If you get stuck, you can upgrade to TurboTax Live for real-time assistance from a tax expert, or choose Full Service to have a pro handle your entire return [3].

TurboTax Features for Tax Professionals and Firms

For tax and accounting professionals, TurboTax offers robust features that streamline client work and improve accuracy:

Import from Other Providers: TurboTax can import electronic PDFs from H&R Block, TaxAct, TaxSlayer, and others, making it easy to switch or consolidate client files [2].
Crypto Support: The Premium version allows users to import up to 20,000 cryptocurrency transactions at once, a major time-saver for clients with complex portfolios [2].
Donation Calculator: Integrated with ItsDeductible, TurboTax helps clients maximize deductions for donated goods [2].
Spanish Language Support: TurboTax now supports Spanish-language tax preparation, broadening accessibility for diverse clients [2].

TurboTax vs. Other Tax Software

TurboTax is often compared to alternatives like H&R Block, TaxAct, and TaxSlayer. While TurboTax is generally more expensive, it offers a superior user experience, extensive import capabilities, and robust support options [2] [3].

Software	Best For	Key Strengths	Notable Limitations
TurboTax	All filers, investors	Ease of use, expert support, imports	Higher price
H&R Block	DIY filers	Lower cost, in-person support	Fewer import options
TaxAct	Budget-conscious	Affordable, straightforward	Less guidance
TaxSlayer	Simple returns	Low cost, easy interface	Limited advanced features

TurboTax Hosting and IT Considerations for Firms

For tax and accounting firms, running TurboTax—or any tax software—requires reliable, secure IT infrastructure. Downtime, data breaches, or compliance issues can disrupt client service and damage your reputation.

Verito’s VeritSpace provides dedicated private server hosting for TurboTax, QuickBooks, Drake, Lacerte, and other tax and accounting applications. With 99.999% uptime, daily backups, and secure remote access, VeritSpace ensures your software is always available and protected [4].

VeritGuard offers proactive managed IT services, including 24/7 U.S.-based support, threat monitoring, patch management, and built-in compliance with IRS and FTC standards. Issues are resolved in minutes, not hours, so your team can focus on clients instead of IT problems [4].

VeritComplete combines hosting and IT management into one seamless solution, with transparent pricing, no surprise fees, and a single support team. Migrations are secure and often completed in under 72 hours, minimizing disruption to your workflow [4].

Why Choose Verito for TurboTax Hosting?

Purpose-built for tax and accounting software: Verito understands the unique needs of tax professionals and has designed its solutions accordingly.
SOC 2 Type II compliant infrastructure: Your data is protected by enterprise-grade security and regular audits.
24/7 expert support: Live assistance is always available, so you’re never left waiting for help.
Seamless, secure migrations: Verito makes it easy to move your software and data to the cloud, with minimal downtime and maximum security.

Verito’s solutions are trusted by firms of all sizes to eliminate downtime, meet compliance standards, and offload IT burdens—so you can focus on serving clients, not fixing tech. It just works. Securely.

Frequently Asked Questions

How does TurboTax software work?
TurboTax guides you through a series of questions about your income, expenses, and life changes. Based on your answers, it automatically applies deductions and credits and fills out your tax forms [3].

Which TurboTax version is right for me?
Choose based on your tax situation: Free Edition for simple returns, Deluxe for homeowners, Premier for investors, and Self-Employed for freelancers or gig workers [1] [2].

What’s the difference between TurboTax Online and TurboTax CD/Download?
TurboTax Online lets you prepare and file your return from any device, with your data stored securely in the cloud. TurboTax CD/Download requires installation on a local device [1].

Can I file state taxes with TurboTax?
Yes, TurboTax supports state tax filing, though additional fees may apply [1].

How much does TurboTax cost?
Prices vary by version and whether you add expert help. See the comparison table above for details [1] [2].

Key Takeaways

TurboTax is a leading tax preparation software with versions for every type of filer, from simple returns to complex self-employed or investment scenarios.
The software’s intuitive interface, robust import capabilities, and expert support options make it a top choice for individuals and tax professionals alike.
For firms, secure, reliable hosting and managed IT services—like those offered by Verito ensure TurboTax and other critical applications are always available, compliant, and protected.
Verito’s VeritSpace, VeritGuard, and VeritComplete solutions provide peace of mind, peak performance, and seamless support, so you can focus on what matters most: your clients.