Skip To Main Content
TurboTax / Tax Calculators & Tips / Tax Tips Guides & Videos / Tax Refund / Withholding Allowances: Are They Still Used on IRS Form W-4?

Withholding Allowances: Are They Still Used on IRS Form W-4?

Written by Rocky Mengle, Attorney • Reviewed by a TurboTax CPAUpdated for Tax Year 2024 • October 16, 2024 2:24 AM
OVERVIEW

The IRS changed the way tax withholding is calculated in 2020, but you might be surprised by what happened to withholding allowances.

Key Takeaways

  • Employees are no longer required to claim withholding allowances on IRS Form W-4. Prior to 2020, workers claimed allowances on the form to determine tax withholdings from their paycheck. Each allowance reduced the amount of money withheld for taxes.
  • Withholding allowances were based on personal and dependent exemptions. However, the Tax Cuts and Jobs Act of 2017 set the personal and dependent exemption amounts to $0 from 2018 to 2025, prompting a need to revise the W-4 form.
  • The revised Form W-4 is aligned with the current tax system and has been simplified to enhance accuracy and transparency. When filling out the form, employees go through a five-step process covering personal information, multiple jobs, working spouses, tax credits, adjustments for non-wage income, itemized deductions, extra withholding, and the employee’s signature.
  • A new W-4 form is generally required upon starting a new job. Employees don’t have to submit a new form each year after that, but you may choose to submit a revised form whenever you want to adjust your withholding such as after a significant personal or financial change.

If you’re starting a new job or want to adjust your tax withholding, you’ll have to complete IRS Form W-4. That’s the form used by your employer to calculate the amount of federal income tax to take out of your paycheck.

But if it’s been a while since you last filled out a W-4 form, you might be surprised to learn that there’s no longer a line asking how many “allowances” you wanted to claim. That line was always a head scratcher, since many people didn’t know what a withholding allowance was or how many of them they should claim. So, the old W-4 form in place before 2020 probably won’t be missed.

Nevertheless, many people still want to know about withholding allowances. Perhaps you simply want a better understanding of how your current withholding was calculated using the pre-2020 form. Maybe you’re just curious about why the form was changed. Whatever your reason for wanting to know more about withholding allowances, here’s some background information that hopefully will help.

What are withholding allowances?

Before 2020, you had to claim a certain number of withholding allowances on Form W-4 (you could pick zero). The amount of federal income tax withheld from your paycheck was then based on how many allowances you claimed.

Basically, a withholding allowance is an exemption from tax for a portion of your wages. So, the more allowances you claimed, the less your employer withheld for taxes. (And, of course, fewer allowances translated into more withholding.)

You could claim fewer allowances than what you were entitled to if you wanted to increase your withholding, but you couldn’t claim more allowances.

How did withholding allowances work?

The number of allowances you could claim before 2020 was based on:

The old Form W-4 instructions contained worksheets to help you determine how many withholding allowances you could claim. The goal was to select the number of allowances that would result in total withholding for the year being as close as possible to your tax liability for the year. That way, if you followed the worksheets, the tax refund or the amount you owed on your next tax return would be relatively close to $0.

The Personal Allowances Worksheet had to be completed first. This worksheet was used to calculate allowances based on your filing status, number of jobs, and expected tax credits. To convert certain tax credits to allowances, Worksheet 1-6 in IRS Publication 505 was used. You only had to fill out the Personal Allowances Worksheet if your tax situation was fairly simple.

If your tax situation was more complicated, you could also complete the Deductions, Adjustments, and Additional Income Worksheet to increase the number of withholding allowances allowed. This worksheet was helpful if you planned to itemize or claim any adjustments to income, the qualified business income deduction, or any additional Standard Deduction for age or blindness.

You could also use the Deductions, Adjustments, and Additional Income Worksheet if you expected a large amount of taxable non-wage income that wasn’t otherwise subject to withholding, such as interest, dividends, rental income, capital gains, gambling winnings, and the like. That way, you could withhold tax for these items throughout the year through payroll withholding, instead of having to make estimated tax payments for them.

The final worksheet in the old W-4 instructions – the Two-Earners/Multiple Jobs Worksheet – could be used to refine your withholding if:

  • you had more than one job at a time
  • both you and your spouse worked, and you filed a joint return

A few other worksheets were available in Publication 505 to help certain workers calculate the number of withholding allowances permitted. However, most employees didn’t need to use them. Other methods of determining your maximum number of allowances were also allowed such as using the IRS withholding calculator. However, no matter how you determined the number of allowances to claim, you still had to file a Form W-4 with your employer.

Why aren’t withholding allowances used anymore?

Under the old system for calculating tax withholding, the value of an allowance was based on the amount of personal and dependent exemptions. However, the Tax Cuts and Jobs Act of 2017 suspended use of these exemptions from 2018 to 2025 (they’re technically reduced to $0 for those tax years).

As a result, there was a disconnect between the tax owed when filing a tax return and the amount withheld for many taxpayers. So, starting in 2020, the IRS revised Form W-4 to align the tax withholding calculation with the tax system currently in place.

According to the IRS, the changes also increased transparency, simplicity, and accuracy of the W-4 form. This is accomplished in part by replacing most of the old worksheets with revised worksheets and new tables.

How is tax withholding calculated now?

While the new W-4 form is longer, it’s generally easier to complete. There’s a five-step process for completing the current Form W-4, but all five steps aren’t necessarily required for all people.

Step 1 – Enter Personal Information. The first step is to provide personal information, such as your name, address, and Social Security number. You also need to provide your anticipated filing status, which will determine the Standard Deduction and tax rates used to calculate your withholding.

Step 2 – Multiple Jobs or Spouse Works. You only need to complete Step 2 if you hold more than one job at a time, or file jointly and your spouse also works. Your withholding is based on income from all of these jobs.

There are three different ways to complete Step 2.

  • You can use the IRS’s withholding estimator (use this option if you or your spouse have self-employment income).
  • You can use the Multiple Jobs Worksheet in the Form W-4 instructions.
  • If there are only a total of two jobs to consider, you can have the Standard Deduction and tax brackets cut in half for each job to calculate your withholding (recommended if the pay for both jobs is similar).

Step 3 – Claim Dependent and Other Credits. Use this step to provide information about the child tax credit, credit for other dependents, or other tax credits that you expect to claim when you file your tax return. Adding credits will reduce your withholding, since your expected tax liability for the year will be lower.

Step 4 – Other Adjustments. This step is only used if you:

  • have taxable non-wage income such as interest, dividends, or capital gains for which you would like to have taxes withheld from your paycheck, so you don’t have to make estimated tax payments for that income
  • expect to claim deductions (other than the Standard Deduction) and want to reduce your withholding to account for the deductions
  • want additional tax to be withheld from your paycheck each pay period including any amount from the Multiple Jobs Worksheet.

TurboTax Tip:

If you have more than one job, only complete Step 3 and the portions of Step 4 covering non-wage income and expected deductions on the W-4 form for the highest paying job rather than on all of your W-4 forms. That will help improve the accuracy of your overall withholding.

Step 5 – Signature and Date. Every worker must sign and date the W-4 form.

You can use TurboTax’s handy W-4 Withholding Calculator for help with Steps 2 to 4.

Your employer will use the information provided on your Form W-4 to calculate the amount of tax to withhold from your wages. It’s important to be as accurate as possible so the right amount of tax is taken out of your paycheck.

When is Form W-4 required?

The only time you really need to file a W-4 form is when you start a new job. If you don't give your employer a Form W-4 when you start, your withholding will be calculated as if your filing status for Step 1 is single or married filing separately, and as if you didn’t include anything for Steps 2 to 4.

You don’t have to give your boss a new W-4 form every year. However, you can submit a new form any time you want to adjust your withholding.

Should you adjust your tax withholding with a new Form W-4?

Just because you can submit a new W-4 form to adjust your withholding, it’s not always easy to know when that’s actually a good idea. So, here are a few good reasons to adjust your W-4 withholding.

You paid a large tax bill with your most recent return. If too little tax is withheld, you’ll generally owe tax when you file your tax return. Having to pay a big tax bill when you file your tax return is a sign that you need to increase your withholding. You can even be hit with an IRS penalty if withholding is too far below the required amount.

You got a big tax refund from your last return. If too much tax is withheld, you’ll generally get a tax refund. While that might sound nice, getting a refund effectively means you gave the government an interest-free loan each pay period. If your refund is big, then you may want to decrease your withholding to bring your next refund down a bit.

You start a side job. You should consider submitting a new W-4 form if you start a side gig as an independent contractor and you won’t have taxes withheld from the second job’s income. By submitting a new W-4 form and including the side job’s income, withholding from your primary job’s paycheck will increase to cover the taxes owed for your second income. Otherwise, you’ll have to make estimated tax payments to cover your second job’s income.

Your spouse gets a job or changes jobs. Since your overall household income is an important component of your tax withholding calculation, you might want to submit a new Form W-4 if your spouse gets a job or switches jobs. This is especially true if it results in a major change to your overall household income.

Your filing status changes. If you get married or divorced, your filing status will change. Since your withholding amount is based on your filing status, you should submit a new W-4 form if it changes because of marriage, separation, divorce, or any other reason.

You have or adopt a child. Having or adopting a child means you can claim the child tax credit for your new son or daughter. That will reduce your tax liability. By submitting a new Form W-4, you can reduce your withholding to account for the additional credit. And if you previously filed as Single, you might be eligible to file as Head of Household.

Are you exempt from tax withholding?

You’re exemption from withholding for the year if you both:

  • had no federal income tax liability last year
  • expect to have no federal income tax liability this year

If that’s the case, you can avoid tax withholding from your paycheck altogether.

However, you still have to file Form W-4 to claim the exemption. In that case, write “Exempt” on Form W-4 in the space below Step 4(c) and complete Steps 1(a), 1(b), and 5. That’s it.

Also, an exemption is only good for one year. So, you have to give your employer a new W-4 form by February 15 of each year to extend your exemption.

With TurboTax Live Full Service, a local expert matched to your unique situation will do your taxes for you start to finish. Or, get unlimited help and advice from tax experts while you do your taxes with TurboTax Live Assisted.

And if you want to file your own taxes, you can still feel confident you'll do them right with TurboTax as we guide you step by step. No matter which way you file, we guarantee 100% accuracy and your maximum refund.

Your taxes done right,
with experts by your side

Get unlimited advice, an expert final review, and your maximum refund, guaranteed with TurboTax Live Assisted Basic.

$89*
State additional
Start for free
100% free tax filing$0

~37% of filers qualify. Simple Form 1040 returns only (no schedules except for Earned Income Tax Credit, Child Tax Credit and student loan interest).

Start for $0

Looking for more information?

Related Articles
More in Tax Refund
How to Track an Income Tax RefundHow to Check Your Tax Refund StatusGuide to IRS Form 8888: Direct Deposit of Your Tax Refund in Multiple AccountsHow Long Does It Take To Get My Tax Refund?Fatten Your Paycheck and Still Get a Tax Refund

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

Your security. Built into everything we do.

Here's how

File faster and easier with the free TurboTax app

TurboTax Online: Important Details about Filing Simple Form 1040 Returns

If you have a simple Form 1040 return only (no forms or schedules except as needed to claim the Earned Income Tax Credit, Child Tax Credit or student loan interest), you can file for free yourself with TurboTax Free Edition, or you can file with TurboTax Live Assisted Basic at the listed price. Roughly 37% of taxpayers are eligible.

Examples of situations included in a simple Form 1040 return (assuming no added tax complexity):

  • W-2 income
  • Interest, dividends or original issue discounts (1099-INT/1099-DIV/1099-OID) that don’t require filing a Schedule B
  • IRS standard deduction
  • Earned Income Tax Credit (EITC)
  • Child Tax Credit (CTC)
  • Student loan interest deduction
  • Taxable qualified retirement plan distributions

Examples of situations not included in a simple Form 1040 return:

  • Itemized deductions claimed on Schedule A, like charitable contributions, medical expenses, mortgage interest and state and local tax deductions
  • Unemployment income reported on a 1099-G
  • Business or 1099-NEC income (often reported by those who are self-employed, gig workers or freelancers)
  • Stock sales (including crypto investments)
  • Income from rental property or property sales
  • 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 Support 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 Support 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 Simple Form 1040 returns only (no forms or schedules except for the Earned Income Tax Credit, Child Tax Credit and student loan interest), 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 12/31/2025. 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 12/31/2025. 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, CT, DE, FL, GA, IL, KS, MA, MD, ME, MI, MN, MO, NC, NJ, NV, NY, OH, PA, RI, SD, TN, TX, UT, VA, WA, WV 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 2024 TurboTax individual tax return, we will provide one-on-one question-and-answer support with a tax professional, if requested through our Audit Support Center, for audited individual returns filed with TurboTax Desktop for the current 2024 tax year and, for individual, non-business returns, for the past two tax years (2022, 2023). 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 software, 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. Desktop add-on products and services purchased are non-refundable.

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 software, 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. Desktop add-on products and services purchased are non-refundable.

TURBOTAX DESKTOP DISCLAIMERS

  • 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 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 connection. Desktop add-on products and services purchased are non-refundable.

  • Fastest Refund Possible: Get your tax refund from the IRS as fast as possible by e-filing and choosing to receive your refund by 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: $3,207 is the average refund amount American taxpayers received in the 2024 filing season based upon IRS data as of February 16, 2024 and may not reflect actual refund amount received.

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

  • Deduct From Your Federal Refund: Individual taxes only. Subject to eligibility requirements. Additional terms apply. A $40 Refund Processing Service fee applies 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 (2022 and higher) and QuickBooks Desktop (2023 and higher); both Windows only. Quicken import not available for TurboTax Desktop Business. Quicken products provided by Quicken Inc., Quicken import subject to change.

  • Live Tax Advice: Access to tax experts to obtain answers to tax questions and to assist with tax year 2024 return(s) prepared with TurboTax Desktop software. Additional fees apply. Must be purchased and used by October 31, 2025. Excludes TurboTax Desktop Business. See License Agreement for details.

  • 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.

©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.

About Cookies
Manage Cookies