Still need to file? An expert can help or do taxes for you with 100% accuracy. Get started

Skip To Main Content
TurboTax Logo
TurboTax / Tax Calculators & Tips / Tax Tips Guides & Videos / Self Employment Taxes / Beginner's Guide to Sole Proprietorship Taxes

Beginner's Guide to Sole Proprietorship Taxes

Written by Rocky Mengle, J.D. (Tax Attorney) • Reviewed by Miguel Burgos, CPAUpdated for Tax Year 2023 • June 17, 2024 1:11 PM
OVERVIEW

For new entrepreneurs going out on their own for the first time, sole proprietorship taxes can be daunting. But for federal income tax purposes, there’s no extra tax return to file – you simply include business income and expenses as part of your personal income tax return. On the other hand, you must pay self-employment taxes, and you might have to make estimated tax payments and handle payroll taxes if you have employees. Other tax obligations might be required, too.

Smiling woman in the doorway of a clothing store

Key Takeaways

  • Sole proprietors report their business income and losses on their personal tax returns by attaching Schedule C to Form 1040, which keeps the tax process straightforward but also ties personal and business finances together.
  • A sole proprietor is also responsible for paying self-employment taxes, which fund Social Security and Medicare. This tax is calculated using Schedule SE and represents both the employer and employee portions of these taxes.
  • A wide range of business expenses may be deductible by sole proprietors, including office supplies, advertising costs, and a portion of home and vehicle expenses if they’re used for business purposes. Half of a sole proprietor’s self-employment tax is also deductible.
  • Sole proprietors may also be responsible for estimated tax payments, withholding and paying employment taxes for their workers, excise taxes, sales taxes, and more.

Whether you’re ready to begin a side gig or go completely out on your own, operating a business as a sole proprietor is often the best way to go for self-employed entrepreneurs.

Sole proprietorships are easy to set up. Unlike other types of businesses – such as partnerships, limited liability companies (LLCs), and S corporations – you don’t have to register or formally do anything special to form a sole proprietorship.

And being a sole proprietor is fairly straightforward from a tax perspective, too. Since your business income and expenses are ultimately treated as personal income and expenses, you don’t even need to file a separate federal income tax return for your business.

But before conducting business as a sole proprietor, there are a few unique tax twists and turns you need to know about. The checklist below will guide you through the critical federal tax requirements for sole proprietorships. So, if you’re venturing out on your own as a new sole proprietor, you’ll have a basic understanding of the federal tax code provisions and IRS rules that apply to you.

What is a sole proprietorship?

Before diving into the tax aspects of being a self-employed sole proprietor, let’s talk a bit about sole proprietorships in general.

A sole proprietorship is the simplest and most common structure for new businesses. It’s an unincorporated business owned and operated by one person with no legal distinction between the business and the owner. The IRS calls a sole proprietorship a “disregarded entity” because, as the tax agency puts it, it’s “disregarded as separate from its owner.” 

Establishing a sole proprietorship is typically straightforward and less costly than setting up other business entities. There is usually less paperwork and fewer regulatory hurdles. A sole proprietor can cease business operations without much formal procedure, too.

The owner has complete control over all business decisions. He or she is also entitled to all profits from the business.

But the owner is responsible for all the business's debts, losses, and liabilities as well. As a result, the owner can be held personally liable for the debts and legal actions taken against the business. For this reason, sole proprietors often purchase business insurance to help protect their personal assets.

How are sole proprietorships taxed?

As already noted, a sole proprietorship and its owner are one and the same in the eyes of the law. As a result, when it comes to federal income taxes, the business itself is not taxed separately as an entity.

Instead, a sole proprietorship’s profits and losses are "passed through" directly to the owner. So, if you’re a sole proprietor, your business's financial activities are included on your personal income tax return and taxed at your personal income tax rate. But this also means your taxable income will be higher if your business is profitable, which can knock you into a higher tax bracket.

Sole proprietors are also subject to a special self-employment tax, which helps fund Social Security and Medicare (although you can deduct 50% of the tax you pay). They generally must make estimated tax payments, too. Plus, if you have employees, you’ll have to withhold, pay, and report payroll taxes for them as well.

On the bright side, sole proprietors can reduce their taxable income by deducting business expenses – such as costs for goods sold, rent, utilities, and other necessary costs – directly on their personal tax return. They may also be eligible for certain tax deductions specifically designed for self-employed people, such as a deduction for health insurance premiums.

I’ll flesh out all of these tax breaks and requirements in a moment.

How to file a sole proprietorship tax return

When filing your federal income tax return as a sole proprietor, any profit or loss from your business is reported on your 1040 form as ordinary income or loss. However, you’ll need to file another tax form first to calculate your business’s profit or loss.

You’ll also have to file a separate form to calculate your self-employment tax and the 50% deduction. Both the tax and the deduction ultimately find their way to your Form 1040, too.

Schedule C for sole proprietors

If you’re a sole proprietor, your business income and expenses are first reported on Schedule C. Your business expenses are subtracted from your business income to determine if you have a profit or loss. If your income is greater than your expenses, you have a profit for the tax year. If your expenses exceed your income, you have a loss.

Any profit or loss calculated on Schedule C is then carried over to Schedule 1 of your 1040 form. From there, it’s added to the rest of your taxable income (or subtracted from it if you have a loss).

You must report all income from your business, no matter the source. This includes payments to you shown on any of the various 1099 forms that may have been sent to you in relation to your business. Common 1099 forms you might receive as a sole proprietor include:

  • Form 1099-MISC – For royalties payments of $10 or more, or for rent, prizes, awards, and other miscellaneous payments of $600 or more,
  • Form 1099-NEC – For payment of at least $600 for services performed as a nonemployee, and
  • Form 1099-K – For payments from credit, debit, gift, or other payment card transactions, or from transactions through payment apps (e.g., Venmo and PayPal) or online marketplaces (e.g., StubHub and eBay), of at least $5,000 (the $5,000 threshold is for the 2024 tax year, but it will eventually be lowered to $600).

Also use Schedule C to report income received as a “statutory employee” (i.e., an independent contractor treated by statute as an employee).

Your business expenses must be both ordinary and necessary in order to deduct them from your business income. An expense is “ordinary” if it’s common and accepted in your field of business. It’s “necessary” if it’s helpful and appropriate for your business. An expense doesn’t have to be indispensable to be considered necessary.

Examples of common business expenses claimed on Schedule C include costs for:

  • Advertising,
  • Cars and trucks,
  • Commissions and fees,
  • Depreciation,
  • Employee benefit programs,
  • Goods sold,
  • Insurance,
  • Interest,
  • Mortgages,
  • Legal and professional services,
  • Office space (including home offices),
  • Rent,
  • Repairs and maintenance,
  • Supplies,
  • Taxes and licenses,
  • Travel,
  • Utilities, and
  • Wages.

Some of these are discussed in more detail later.

Schedule SE for sole proprietors

You generally must pay self-employment taxes if you have a profit of $400 or more as a sole proprietor or other self-employed person. But as mentioned earlier, you can also deduct 50% of the self-employment tax you must pay.

Both the self-employment tax and the 50% deduction are calculated on Schedule SE. They’re then reported on Schedule 1 (deduction) and Schedule 2 (tax). But both the tax and the deduction eventually are reflected on your 1040 form itself.

The self-employment tax rate is 15.3%, which includes 12.4% for Social Security and 2.9% for Medicare. However, only 92.35% of your net earnings from self-employment is subject to the tax.

Also note that there are limits to how much of your income is subject to the Social Security part of the self-employment tax. For 2024, the first $168,600 of your combined wages, tips, and net earnings from self-employment is subject to the Social Security portion (up from $160,200 for 2023). Amounts above this threshold aren’t subject to the tax for Social Security, but they continue to be subject to the tax for Medicare.

TurboTax Tip:

You must also pay an additional 0.9% Medicare tax if your total wages, compensation, and self-employment income exceed $250,000 for joint filers, $125,000 for married people filing separate returns, or $200,000 for all other people. File Form 8959 if you owe this extra payroll tax.

 

Business tax deductions for sole proprietorships

I already touched upon the business expenses deductible on Schedule C, but there are a handful of other federal tax deductions specifically designed for sole proprietors and other self-employed people that aren’t reported on Schedule C (including the 50% deduction for self-employment taxes).

Let’s take a closer look at a couple of the Schedule C deductions that have unique ways of calculating the deductible amount, and introduce you to the non-Schedule C deductions for self-employed people that haven’t already been discussed.

Car expenses: Standard mileage rate vs. actual expenses

Sole proprietors who use their own car for business purposes can deduct their business-related vehicle expenses on Schedule C using either the standard mileage rate or their actual expenses. For purposes of this deduction, a “car” includes a van, pickup, or panel truck.

For the 2024 tax year, the standard mileage rate is 67¢ per mile driven for business use (it was 65.5¢ per mile for 2023). This is a good option if you don’t want to keep track of all your gas, oil, repair, and other costs of using your car for business.

If you go with the actual expense method of calculating your deduction, you can deduct the cost of gas, oil, tires, insurance, repairs, lease payments, parking, tolls, garage rental, and more. However, you must divide your expenses between business and personal use, and then only deduct expenses related to the business use of your vehicle.

Health insurance costs for self-employed people

Sole proprietors and other self-employed people might be able to deduct the cost of health insurance. The insurance plan can cover you, your spouse, and your dependents.

The insurance must be established for your business. However, if you’re filing Schedule C, the policy can be in either your name or the business’s name.

You can’t claim the deduction for health insurance premiums paid for any month that you were eligible for health insurance through your or a family member's employer.

The deduction is claimed on Schedule 1, not Schedule C.

Home office deduction: Actual expenses vs. simplified method

If you’re a sole proprietor who works out of your home, you can deduct the costs of rent, mortgage interest, property taxes, insurance, utilities, repairs, maintenance, and other expenses for the part of your home used for business. The home office deduction is claimed on Schedule C.

You can only deduct expenses for a portion of your home that’s "regularly and exclusively" used as your principal place of business. So, for example, you can’t deduct expenses for a room in your home if you use the space both for business and personal activities.

The deduction for the business use of your home is calculated in one of two ways. You can either deduct:

  • The actual expenses related to your home office (i.e., your total home expenses multiplied by a percentage representing the portion of your home used for business), or
  • $5 for every square foot of your home office (up to 300 sq. ft.).

If you select the actual expense method, you must also file Form 8829.

SEP, SIMPLE, and qualified plan contributions

Sole proprietors and other self-employed people can save for retirement with special retirement plans designed specifically for small business owners. These include:

  • Simplified Employee Pension (SEP) IRAs,
  • Savings Incentive Match Plan for Employees (SIMPLE) IRAs, and
  • Solo 401(k) plans.

There’s a non-Schedule C deduction available to sole proprietors for contributions to these accounts for themselves. The deduction is claimed on Schedule 1 of Form 1040.

Sole proprietors who put money in these plans for their employees can deduct those contributions as a business expense on Schedule C.

In either case, the deduction can’t exceed the contribution limit set up by the IRS for the year (the limits are adjusted each year to account for inflation).

Qualified business income deduction

The qualified business income (QBI) deduction is available to small business owners, including sole proprietors. However, at this time, the deduction is set to expire after the 2025 tax year.

This tax break allows qualified sole proprietors to deduct up to 20% of their QBI, which is generally the net total of income, gain, deduction, and loss from any qualified trade or business.

However, if your business income exceeds a certain amount, the QBI deduction is reduced (possibly to $0) for doctors, lawyers, accountants, and certain other service-oriented business owners. The point at which the reduction begins for the 2024 tax year is:

  • $383,900 of business income for joint filers ($364,200 for 2023), and
  • $191,950 of business income for all other people ($182,100 for 2023).

This deduction isn’t reported on Schedule C or Schedule 1. Instead, it’s claimed on the first page of your 1040 form.

Estimated tax payments by sole proprietors

Even though we only have to file a federal income tax return once per year, we have to pay taxes throughout the year as we earn income. If you work for someone else, those tax payments are withheld from each paycheck and sent to the IRS by your employer. But if you’re self-employed, you have to make those payments yourself.

This is done by making estimated tax payments for each quarter. For the 2024 tax year, the estimated tax due dates for sole proprietors are:

  • April 15, 2024 for income earned from January to March 2024,
  • June 17, 2024, for income earned from April to June 2024,
  • September 16, 2024, for income earned from July to September 2024, and
  • January 15, 2025, for income earned from October to December 2024.

Use Form 1040-ES to calculate the amount of each estimated tax payment. But you don’t need to make estimated tax payments if you don’t expect to owe at least $1,000 in taxes when you file your tax return for the year.

Employment taxes for sole proprietorships

If you have employees during the year, you’ll have some additional tax-related responsibilities. For instance, you’ll have to send each employee a W-2 form by January 31. A copy of each W-2 form must also be sent to the Social Security Administration.

You’ll also have to withhold income, Social Security, and Medicare taxes from their paychecks and send it to the IRS. Employers are also responsible for paying half of the Social Security and Medicare taxes (FICA taxes) out of their own pocket, too. And you’ll have to file Form 941, 943, 944, and/or 945 to report withheld taxes to the IRS.

Employers must also pay unemployment taxes (FUTA taxes) for each employee. Only the employer is responsible for FUTA taxes, so there’s no paycheck withholding for it. You must also file Form 940 annually to report the FUTA taxes you paid for the previous year.

1099 forms for payments made by sole proprietors

As a sole proprietor, you might also have to send 1099 forms to people and other businesses that you made payments to during the tax year (the IRS gets a copy, too). A 1099 form is a type of information return, which are tax forms used to report income and other relevant financial information about individuals, businesses, and organizations.

Two common 1099 forms that many sole proprietors must file are Form 1099-NEC and Form 1099-MISC. If you paid a freelancer or other non-employee at least $600 during the year, you must send him or her Form 1099-NEC. Form 1099-MISC is required for a number of miscellaneous business payments of $600 or more, such as for office space or equipment rental, prizes and awards, backup withholding, legal fees, and more. Form 1099-MISC is also required if you paid at least $10 in royalties during the tax year.

There are many other types of 1099 forms and information returns. Generally speaking, you must send the person or business that received your payment a 1099 form by January 31 of the following year, and the IRS must receive a copy of the form by February 28. However, there are exceptions to those general deadlines. Check the IRS’s general instructions for information returns for details.

Other taxes paid by sole proprietorships

Up to this point, I’ve focused on federal income and payroll taxes. However, there are several other types of taxes you might have to pay as a sole proprietor. 

For instance, depending on the type of business you’re running, you might have to collect and/or pay excise taxes. These are basically taxes imposed on selected goods, services, and activities. As an example, if you run a tanning salon, you’ll have to collect the 10% federal indoor tanning services tax from your customers.

States and local governments impose their own taxes, too. You’re probably familiar with state and local sales taxes, which you might have to collect and pay as a sole proprietor if you sell goods or services. If you’re responsible for collecting sales tax, you probably have to register with your state, too. State excise taxes may be due as well.

If your business owns real estate or other taxable property (e.g., office furniture, machinery, computers, etc.), you might owe state or local property taxes as well.

Plus, unless you live and operate your business in a state without an income tax, you’ll likely have to pay state income taxes, too. Some local governments may also hit you with an income tax bill of their own.

The point is that federal, state, and local governments can tax you in many different ways. So, make sure you do your homework to understand all the tax obligations you will face as a business owner.

LLCs taxed as a sole proprietorship

Finally, if you set up a business as a limited liability company (LLC) according to your state’s law, you might be treated as a sole proprietorship for federal income tax purposes.

The IRS automatically treats an LLC with only one owner as a sole proprietorship (i.e., as a “disregarded entity”), unless the business files Form 8832 and elects to be treated as a corporation.

However, even if an LLC elects to be treated as a corporation for income tax purposes, an LLC with only one owner will still be considered a sole proprietorship for employment and certain excise taxes.

Let a local tax expert matched to your unique situation get your taxes done 100% right with TurboTax Live Full Service. Your expert will uncover industry-specific deductions for more tax breaks and file your taxes for you. Backed by our Full Service Guarantee.

You can also file taxes on your own with TurboTax Premium. We’ll search over 500 deductions and credits so you don’t miss a thing.

Use your Intuit Account to sign in to TurboTax.
By selecting Sign in, you agree to our Terms and acknowledge our Privacy Statement.

Investment and Self-employment taxes done right

A local expert matched to your unique situation will get your taxes done 100% right, guaranteed with TurboTax Live Full Service. Your expert will find every tax deduction you deserve & file for you as soon as today.*

Taxes done right for investors and self-employed

TurboTax Premium searches 500 tax deductions to get you every dollar you deserve. Your taxes done 100% right, guaranteed.

The above article is intended to provide generalized financial information designed to educate a broad segment of the public; it does not give personalized tax, investment, legal, or other business and professional advice. Before taking any action, you should always seek the assistance of a professional who knows your particular situation for advice on taxes, your investments, the law, or any other business and professional matters that affect you and/or your business.

TaxCaster Tax
Calculator

Estimate your tax refund and where you stand

I’m a TurboTax customer

I’m a new user

Tax Bracket
Calculator

Easily calculate your tax rate to make smart financial decisions

Get started

W-4 Withholding
Calculator

Know how much to withhold from your paycheck to get a bigger refund

Get started

Self-Employed
Tax Calculator

Estimate your self-employment tax and eliminate any surprises

Get started

Crypto Calculator

Estimate capital gains, losses, and taxes for cryptocurrency sales

Get started

Self-Employed Tax Deductions Calculator

Find deductions as a 1099 contractor, freelancer, creator, or if you have a side gig

Get started

ItsDeductible™

See how much your charitable donations are worth

Get started

Read why our customers love Intuit TurboTax

Rated 4.6 out of 5 stars by our customers

(676,928 reviews of TurboTax Online)

Security icon

Your security. Built into everything we do.

Here's how

taxball

File faster and easier with the free TurboTax app

Download on the app storeGet it on Google Play

TurboTax Online: Important Details about Filing Form 1040 Returns with Limited Credits

A Form 1040 return with limited credits is one that's filed using IRS Form 1040 only (with the exception of the specific covered situations described below). Roughly 37% of taxpayers are eligible.

If you have a Form 1040 return and are claiming limited credits only, you can file for free yourself with TurboTax Free Edition, or you can file with TurboTax Live Assisted Basic or TurboTax Full Service at the listed price.

Situations covered (assuming no added tax complexity):

  • W-2 income
  • Interest or dividends (1099-INT/1099-DIV) that don’t require filing a Schedule B
  • IRS standard deduction
  • Earned Income Tax Credit (EITC)
  • Child Tax Credit (CTC)
  • Student loan interest deduction

Situations not covered:

  • Itemized deductions claimed on Schedule A
  • Unemployment income reported on a 1099-G
  • Business or 1099-NEC income
  • Stock sales (including crypto investments)
  • Rental property income
  • Credits, deductions and income reported on other forms or schedules 

TURBOTAX ONLINE GUARANTEES

TurboTax Individual Returns:

  • 100% Accurate Calculations Guarantee – Individual Returns: If you pay an IRS or state penalty or interest because of a TurboTax calculation error, we'll pay you the penalty and interest. Excludes payment plans. This guarantee is good for the lifetime of your personal, individual tax return, which Intuit defines as seven years from the date you filed it with TurboTax. Excludes TurboTax Business returns. Additional terms and limitations apply. See Terms of Service for details.

  • Maximum Refund Guarantee / Maximum Tax Savings Guarantee - or Your Money Back – Individual Returns: If you get a larger refund or smaller tax due from another tax preparation method by filing an amended return, we'll refund the applicable TurboTax federal and/or state purchase price paid. (TurboTax Free Edition customers are entitled to payment of $30.) This guarantee is good for the lifetime of your personal, individual tax return, which Intuit defines as seven years from the date you filed it with TurboTax. Excludes TurboTax Business returns. Additional terms and limitations apply. See Terms of Service for details.

  • Audit Support Guarantee – Individual Returns: If you receive an audit letter from the IRS or State Department of Revenue based on your 2023 TurboTax individual tax return, we will provide one-on-one question-and-answer support with a tax professional, if requested through our Audit Report Center, for audited individual returns filed with TurboTax for the current 2023 tax year and for individual, non-business returns for the past two tax years (2022, 2021). Audit support is informational only. We will not represent you before the IRS or state tax authority or provide legal advice. If we are not able to connect you to one of our tax professionals, we will refund the applicable TurboTax federal and/or state purchase price paid. (TurboTax Free Edition customers are entitled to payment of $30.) This guarantee is good for the lifetime of your personal, individual tax return, which Intuit defines as seven years from the date you filed it with TurboTax. Excludes TurboTax Business returns. Additional terms and limitations apply. See Terms of Service for details.

  • Satisfaction Guaranteed: You may use TurboTax Online without charge up to the point you decide to print or electronically file your tax return. Printing or electronically filing your return reflects your satisfaction with TurboTax Online, at which time you will be required to pay or register for the product.

  • Our TurboTax Live Full Service Guarantee means your tax expert will find every dollar you deserve. Your expert will only sign and file your return if they believe it's 100% correct and you are getting your best outcome possible. If you get a larger refund or smaller tax due from another tax preparer, we'll refund the applicable TurboTax Live Full Service federal and/or state purchase price paid. If you pay an IRS or state penalty (or interest) because of an error that a TurboTax tax expert or CPA made while acting as a signed preparer for your return, we'll pay you the penalty and interest. Limitations apply. See Terms of Service for details.

  • 100% Accurate Expert-Approved Guarantee: If you pay an IRS or state penalty (or interest) because of an error that a TurboTax tax expert or CPA made while providing topic-specific tax advice, a section review, or acting as a signed preparer for your return, we'll pay you the penalty and interest. Limitations apply. See Terms of Service for details.

TurboTax Business Returns:

  • 100% Accurate Calculations Guarantee – Business Returns. If you pay an IRS or state penalty or interest because of a TurboTax calculation error, we'll pay you the penalty and interest. Excludes payment plans. You are responsible for paying any additional tax liability you may owe. Additional terms and limitations apply. See Terms of Service for details.

  • TurboTax Audit Support Guarantee – Business Returns. If you receive an audit letter from the IRS or State Department of Revenue on your 2023 TurboTax business return, we will provide one-on-one question-and-answer support with a tax professional, if requested through our Audit Report Center, for audited business returns filed with TurboTax for the current 2023 tax year. Audit support is informational only. We will not represent you before the IRS or state tax authority or provide legal advice. If we are not able to connect you to one of our tax professionals for this question-and-answer support, we will refund the applicable TurboTax Live Business or TurboTax Live Full Service Business federal and/or state purchase price paid. Additional terms and limitations apply. See Terms of Service for details.

TURBOTAX ONLINE/MOBILE PRICING:

  • Start for Free/Pay When You File: TurboTax online and mobile pricing is based on your tax situation and varies by product. For most paid TurboTax online and mobile offerings, you may start using the tax preparation features without paying upfront, and pay only when you are ready to file or purchase add-on products or services. Actual prices for paid versions are determined based on the version you use and the time of print or e-file and are subject to change without notice. Special discount offers may not be valid for mobile in-app purchases. Strikethrough prices reflect anticipated final prices for tax year 2023.

  • TurboTax Free Edition: TurboTax Free Edition ($0 Federal + $0 State + $0 To File) is available for those filing Form 1040 and limited credits only, as detailed in the TurboTax Free Edition disclosures. Roughly 37% of taxpayers qualify. Offer may change or end at any time without notice.

  • TurboTax Live Assisted Basic Offer: Offer only available with TurboTax Live Assisted Basic and for those filing Form 1040 and limited credits only. Roughly 37% of taxpayers qualify. Must file between November 29, 2023 and March 31, 2024 to be eligible for the offer. Includes state(s) and one (1) federal tax filing. Intuit reserves the right to modify or terminate this TurboTax Live Assisted Basic Offer at any time for any reason in its sole and absolute discretion. If you add services, your service fees will be adjusted accordingly. If you file after 11:59pm EST, March 31, 2024, you will be charged the then-current list price for TurboTax Live Assisted Basic and state tax filing is an additional fee. See current prices here.

  • Full Service $100 Back Offer: Credit applies only to federal filing fees for TurboTax Full Service and not returns filed using other TurboTax products or returns filed by Intuit TurboTax Verified Pros. Excludes TurboTax Live Full Service Business and TurboTax Canada products. Credit does not apply to state tax filing fees or other additional services. If federal filing fees are less than $100, the remaining credit will be provided via electronic gift card. Intuit reserves the right to modify or terminate this offer at any time for any reason in its sole discretion. Must file by April 15, 2024 11:59 PM ET.

  • TurboTax Full Service - Forms-Based Pricing: “Starting at” pricing represents the base price for one federal return (includes one W-2 and one Form 1040). Final price may vary based on your actual tax situation and forms used or included with your return. Price estimates are provided prior to a tax expert starting work on your taxes. Estimates are based on initial information you provide about your tax situation, including forms you upload to assist your expert in preparing your tax return and forms or schedules we think you’ll need to file based on what you tell us about your tax situation. Final price is determined at the time of print or electronic filing and may vary based on your actual tax situation, forms used to prepare your return, and forms or schedules included in your individual return. Prices are subject to change without notice and may impact your final price. If you decide to leave Full Service and work with an independent Intuit TurboTax Verified Pro, your Pro will provide information about their individual pricing and a separate estimate when you connect with them.

  • Pays for itself (TurboTax Premium, formerly Self-Employed): Estimates based on deductible business expenses calculated at the self-employment tax income rate (15.3%) for tax year 2022. Actual results will vary based on your tax situation.

TURBOTAX ONLINE/MOBILE:

  • Anytime, anywhere: Internet access required; standard data rates apply to download and use mobile app.

  • Fastest refund possible: Fastest tax refund with e-file and direct deposit; tax refund time frames will vary. The IRS issues more than 9 out of 10 refunds in less than 21 days.

  • Get your tax refund up to 5 days early: Individual taxes only. When it’s time to file, have your tax refund direct deposited with Credit Karma Money™, and you could receive your funds up to 5 days early. If you choose to pay your tax preparation fee with TurboTax using your federal tax refund or if you choose to take the Refund Advance loan, you will not be eligible to receive your refund up to 5 days early. 5-day early program may change or discontinue at any time. Up to 5 days early access to your federal tax refund is compared to standard tax refund electronic deposit and is dependent on and subject to IRS submitting refund information to the bank before release date. IRS may not submit refund information early.

  • For Credit Karma Money (checking account): Banking services provided by MVB Bank, Inc., Member FDIC. Maximum balance and transfer limits apply per account.
  • Fees: Third-party fees may apply. Please see Credit Karma Money Account Terms & Disclosures for more information.

  • Pay for TurboTax out of your federal refund or state refund (if applicable): Individual taxes only. Subject to eligibility requirements. Additional terms apply. A $40 Refund Processing Service fee may apply to this payment method. Prices are subject to change without notice.

  • TurboTax Help and Support: Access to a TurboTax product specialist is included with TurboTax Deluxe, Premium, TurboTax Live Assisted and TurboTax Live Full Service; not included with Free Edition (but is available as an upgrade). TurboTax specialists are available to provide general customer help and support using the TurboTax product. Services, areas of expertise, experience levels, wait times, hours of operation and availability vary, and are subject to restriction and change without notice. Limitations apply See Terms of Service for details.
  • Tax Advice, Expert Review and TurboTax Live: Access to tax advice and Expert Review (the ability to have a Tax Expert review and/or sign your tax return) is included with TurboTax Live Assisted or as an upgrade from another version, and available through December 31, 2024. Intuit will assign you a tax expert based on availability. Tax expert and CPA availability may be limited. Some tax topics or situations may not be included as part of this service, which shall be determined in the tax expert’s sole discretion. For the TurboTax Live Assisted product, if your return requires a significant level of tax advice or actual preparation, the tax expert may be required to sign as the preparer at which point they will assume primary responsibility for the preparation of your return. For the TurboTax Live Full Service product: Handoff tax preparation by uploading your tax documents, getting matched with an expert, and meeting with an expert in real time. The tax expert will sign your return as a preparer. The ability to retain the same expert preparer in subsequent years will be based on an expert’s choice to continue employment with Intuit. Administrative services may be provided by assistants to the tax expert. On-screen help is available on a desktop, laptop or the TurboTax mobile app. Unlimited access to TurboTax Live tax experts refers to an unlimited quantity of contacts available to each customer, but does not refer to hours of operation or service coverage. Service, area of expertise, experience levels, wait times, hours of operation and availability vary, and are subject to restriction and change without notice.

  • TurboTax Live Full Service – Qualification for Offer: Depending on your tax situation, you may be asked to answer additional questions to determine your qualification for the Full Service offer. Certain complicated tax situations will require an additional fee, and some will not qualify for the Full Service offering. These situations may include but are not limited to multiple sources of business income, large amounts of cryptocurrency transactions, taxable foreign assets and/or significant foreign investment income. Offer details subject to change at any time without notice. Intuit, in its sole discretion and at any time, may determine that certain tax topics, forms and/or situations are not included as part of TurboTax Live Full Service. Intuit reserves the right to refuse to prepare a tax return for any reason in its sole discretion. Additional limitations apply. See Terms of Service for details.

  • TurboTax Live Full Service - File your taxes as soon as today: TurboTax Full Service Experts are available to prepare 2023 tax returns starting January 8, 2024. Based on completion time for the majority of customers and may vary based on expert availability. The tax preparation assistant will validate the customer’s tax situation during the welcome call and review uploaded documents to assess readiness. All tax forms and documents must be ready and uploaded by the customer for the tax preparation assistant to refer the customer to an available expert for live tax preparation.

  • TurboTax Live Full Service -- Verified Pro -- “Local” and “In-Person”: Not all feature combinations are available for all locations. "Local" experts are defined as being located within the same state as the consumer’s zip code for virtual meetings. "Local" Pros for the purpose of in-person meetings are defined as being located within 50 miles of the consumer's zip code. In-person meetings with local Pros are available on a limited basis in some locations, but not available in all States or locations. Not all pros provide in-person services.

  • Smart Insights: Individual taxes only. Included with TurboTax Deluxe, Premium, TurboTax Live, TurboTax Live Full Service, or with PLUS benefits, and is available through 11/1/2024. Terms and conditions may vary and are subject to change without notice.

  • My Docs features: Included with TurboTax Deluxe, Premium TurboTax Live, TurboTax Live Full Service, or with PLUS benefits and is available through 12/31/2024. Terms and conditions may vary and are subject to change without notice.

  • Tax Return Access: Included with all TurboTax Free Edition, Deluxe, Premium, TurboTax Live, TurboTax Live Full Service customers and access to up to the prior seven years of tax returns we have on file for you is available through 12/31/2024. Terms and conditions may vary and are subject to change without notice.

  • Easy Online Amend: Individual taxes only. Included with TurboTax Deluxe, Premium, TurboTax Live, TurboTax Live Full Service, or with PLUS benefits. Make changes to your 2023 tax return online for up to 3 years after it has been filed and accepted by the IRS through 10/31/2026. Terms and conditions may vary and are subject to change without notice. For TurboTax Live Full Service, your tax expert will amend your 2023 tax return for you through 11/15/2024. After 11/15/2024, TurboTax Live Full Service customers will be able to amend their 2023 tax return themselves using the Easy Online Amend process described above.

  • #1 best-selling tax software: Based on aggregated sales data for all tax year 2022 TurboTax products.

  • #1 online tax filing solution for self-employed: Based upon IRS Sole Proprietor data as of 2023, tax year 2022. Self-Employed defined as a return with a Schedule C tax form. Online competitor data is extrapolated from press releases and SEC filings. “Online” is defined as an individual income tax DIY return (non-preparer signed) that was prepared online & either e-filed or printed, not including returns prepared through desktop software or FFA prepared returns, 2022.

  • CompleteCheck: Covered under the TurboTax accurate calculations and maximum refund guarantees. Limitations apply. See Terms of Service for details.
  • TurboTax Premium Pricing Comparison: Cost savings based on a comparison of TurboTax product prices to average prices set forth in the 2020-2021 NSA Fees-Acct-Tax Practices Survey Report.

  • 1099-K Snap and Autofill: Available in mobile app and mobile web only.

  • 1099-NEC Snap and Autofill: Available in TurboTax Premium (formerly Self-Employed) and TurboTax Live Assisted Premium (formerly Self-Employed). Available in mobile app only. Feature available within Schedule C tax form for TurboTax filers with 1099-NEC income.

  • Year-Round Tax Estimator: Available in TurboTax Premium (formerly Self-Employed) and TurboTax Live Assisted Premium (formerly Self-Employed). This product feature is only available after you finish and file in a self-employed TurboTax product.

  • **Refer a Friend: Rewards good for up to 20 friends, or $500 - see official terms and conditions for more details.

  • Refer your Expert (Intuit’s own experts): Rewards good for up to 20 referrals, or $500 - see official terms and conditions for more details.

  • Refer your Expert (TurboTax Verified Independent Pro): Rewards good for up to 20 referrals, or $500 - see official terms and conditions for more details

  • Average Refund Amount: Sum of $3140 is the average refund American taxpayers received based upon IRS data date ending 2/17/23 and may not reflect actual refund amount received.

  • Average Deduction Amount: Based on the average amount of deductions/expenses found by TurboTax Self Employed customers who filed expenses on Schedule C in Tax Year 2022 and may not reflect actual deductions found.

  • More self-employed deductions based on the median amount of expenses found by TurboTax Premium (formerly Self Employed) customers who synced accounts, imported and categorized transactions compared to manual entry. Individual results may vary.

  • TurboTax Online Business Products: For TurboTax Live Assisted Business and TurboTax Full Service Business, we currently don’t support the following tax situations: C-Corps (Form 1120-C), Trust/Estates (Form 1041), Multiple state filings, Tax Exempt Entities/Non-Profits, Entities electing to be treated as a C-Corp, Schedule C Sole proprietorship, Payroll, Sales tax, Quarterly filings, and Foreign Income. TurboTax Live Assisted Business is currently available only in AK, AZ, CA, CO, FL, GA, IL, MI, MO, NC, NV, NY, OH, PA, SD, TX, UT, VA, WA, and WY.

  • Audit Defense: Audit Defense is a third-party add-on service provided, for a fee, by TaxResources, Inc., dba Tax Audit. See Membership Agreements at https://turbotax.intuit.com/corp/softwarelicense/ for service terms and conditions. 

TURBOTAX DESKTOP GUARANTEES

TurboTax Desktop Individual Returns:

  • 100% Accurate Calculations Guarantee – Individual Returns: If you pay an IRS or state penalty or interest because of a TurboTax calculation error, we’ll pay you the penalty and interest. Excludes payment plans. This guarantee is good for the lifetime of your personal, individual tax return, which Intuit defines as seven years from the date you filed it with TurboTax Desktop. Excludes TurboTax Desktop Business returns. Additional terms and limitations apply. See License Agreement for details.

  • Maximum Refund Guarantee / Maximum Tax Savings Guarantee - or Your Money Back – Individual Returns: If you get a larger refund or smaller tax due from another tax preparation method by filing an amended return, we'll refund the applicable TurboTax federal and/or state software license purchase price you paid. This guarantee is good for the lifetime of your personal, individual tax return, which Intuit defines as seven years from the date you filed it with TurboTax Desktop. Excludes TurboTax Desktop Business returns. Additional terms and limitations apply. See License Agreement for details.

  • Audit Support Guarantee – Individual Returns: If you receive an audit letter from the IRS or State Department of Revenue based on your 2023 TurboTax individual tax return, we will provide one-on-one question-and-answer support with a tax professional, if requested through our Audit Report Center, for audited individual returns filed with TurboTax Desktop for the current 2023 tax year and, for individual, non-business returns, for the past two tax years (2021, 2022). Audit support is informational only. We will not represent you before the IRS or state tax authority or provide legal advice. If we are not able to connect you to one of our tax professionals, we will refund the applicable TurboTax federal and/or state license purchase price you paid. This guarantee is good for the lifetime of your personal, individual tax return, which Intuit defines as seven years from the date you filed it with TurboTax Desktop. Excludes TurboTax Desktop Business returns. Additional terms and limitations apply. See License Agreement for details.

  • Satisfaction Guarantee/ 60-Day Money Back Guarantee: If you're not completely satisfied with TurboTax Desktop, go to refundrequest.intuit.com within 60 days of purchase and follow the process listed to submit a refund request. You must return this product using your license code or order number and dated receipt.

TurboTax Desktop Business Returns:

  • 100% Accurate Calculations Guarantee – Business Returns: If you pay an IRS or state penalty or interest because of a TurboTax calculation error, we’ll pay you the penalty and interest. Excludes payment plans. You are responsible for paying any additional tax liability you may owe. Additional terms and limitations apply. See License Agreement for details.

  • Maximum Tax Savings Guarantee – Business Returns: If you get a smaller tax due (or larger business tax refund) from another tax preparation method using the same data, TurboTax will refund the applicable TurboTax Business Desktop license purchase price you paid. Additional terms and limitations apply. See License Agreement for details.

  • Satisfaction Guarantee/ 60-Day Money Back Guarantee: If you're not completely satisfied with TurboTax Desktop, go to refundrequest.intuit.com within 60 days of purchase and follow the process listed to submit a refund request. You must return this product using your license code or order number and dated receipt.

TURBOTAX DESKTOP

  • Installation Requirements: Product download, installation and activation requires an Intuit Account and internet connection. Product limited to one account per license code. You must accept the TurboTax License Agreement to use this product. Not for use by paid preparers.

  • TurboTax Desktop Products: Price includes tax preparation and printing of federal tax returns and free federal e-file of up to 5 federal tax returns. Additional fees may apply for e-filing state returns. E-file fees may not apply in certain states, check here for details. Savings and price comparison based on anticipated price increase. Software updates and optional online features require internet connectivity.

  • Fastest Refund Possible: Fastest federal tax refund with e-file and direct deposit; tax refund time frames will vary. The IRS issues more than 9 out of 10 refunds in less than 21 days.

  • Average Refund Amount: Sum of $3140 is the average refund American taxpayers received based upon IRS data date ending 02/17/23 and may not reflect actual refund amount received.

  • TurboTax Product Support: Customer service and product support hours and options vary by time of year.

  • #1 Best Selling Tax Software: Based on aggregated sales data for all tax year 2022 TurboTax products.

  • Deduct From Your Federal or State Refund (if applicable): A $40 Refund Processing Service fee may apply to this payment method. Prices are subject to change without notice.

  • Data Import: Imports financial data from participating companies; Requires Intuit Account. Quicken and QuickBooks import not available with TurboTax installed on a Mac. Imports from Quicken (2021 and higher) and QuickBooks Desktop (2021 and higher); both Windows only. Quicken import not available for TurboTax Desktop Business. Quicken products provided by Quicken Inc., Quicken import subject to change.

  • Audit Defense: Audit Defense is a third-party add-on service provided, for a fee, by TaxResources, Inc., dba Tax Audit. See Membership Agreements at https://turbotax.intuit.com/corp/softwarelicense/ for service terms and conditions.

All features, services, support, prices, offers, terms and conditions are subject to change without notice.

Intuit Logo
TurboTax LogoCreditKarma LogoQuickBooks LogoMailChimp Logo

©1997-2024 Intuit, Inc. All rights reserved.
Intuit, QuickBooks, QB, TurboTax, Credit Karma, and Mailchimp are registered trademarks of Intuit Inc. Terms and conditions, features, support, pricing, and service options subject to change without notice.

Security Certification of the TurboTax Online application has been performed by C-Level Security.

By accessing and using this page you agree to the Terms of Use.