Is TurboTax Really Free in 2025? What You Actually Get (and What You Don’t)

Every tax season, millions of Americans head to TurboTax after seeing ads that promise: “File your taxes for free!” And in 2025, with more people working freelance, juggling multiple income streams, or just trying to stretch every dollar, the idea of free tax filing sounds better than ever.

But here’s the real question: Is TurboTax actually free in 2025?

Let’s break it down so you know exactly what’s included, what’s not, and what to watch out for before you get stuck in an unexpected upgrade.

What Is TurboTax Free Edition in 2025?

TurboTax Free Edition is available for filers with a simple tax return. That means you can use it if you’re filing Form 1040 only, without needing any additional forms or schedules.

TurboTax Free covers:

• W-2 income

• Earned Income Tax Credit (EITC)

• Child Tax Credit (CTC)

• Standard deduction (no itemizing)

• Limited interest or dividend income (like under $1,500)

If your taxes fall into this “basic” category, then yes — TurboTax is legitimately free for you in 2025.

❌ What’s Not Included in TurboTax Free?

This is where things get tricky — and where many filers feel caught off guard.

The moment your tax situation becomes more complex, TurboTax will prompt you to upgrade to a paid version. That includes:

• Freelance or 1099 gig income (like Uber, DoorDash, or side hustles)

• Rental property income (Schedule E)

• Investment income or crypto trades (Schedule D)

• Itemizing deductions (instead of using the standard deduction)

• Student loan interest or HSA contributions (depending on your filing method)

Even if you start filing for free, you might not be able to finish for free.

💡 TurboTax Free vs. Paid Plans: 2025 Snapshot

Here’s a quick comparison of TurboTax’s main plans:

Note: Prices are estimates and can vary based on promotions and state filing fees.

🧐 So… Is TurboTax Free for You?

If you’re a full-time W-2 employee, taking the standard deduction, and not dealing with side gigs or investments, TurboTax Free Edition should work perfectly for you.

But if you’ve got:

• Multiple income streams

• Dependents and deductions

• A freelance or side hustle

• Investment or crypto activity

…be prepared to upgrade.

This is why people often describe TurboTax’s model as a kind of “freemium” service — it’s free to start, but not always free to finish.

🚀 Alternatives Worth Considering in 2025

If you’re frustrated by TurboTax’s limitations or surprise upgrade fees, here are some solid alternatives:

1. IRS Free File

• Offered through IRS.gov

• Available to those with AGI under $79,000

• 100% free, but not always the most user-friendly interface

🔗 https://www.irs.gov/filing/free-file-do-your-federal-taxes-for-free

2. Cash App Taxes (formerly Credit Karma Tax)

• Truly free for both federal and state filing

• Supports freelance income and investments

• Simple to use and 100% online

3. H&R Block Free Online

• Slightly more flexible than TurboTax Free

• Covers some deductions that TurboTax charges for

• Great user interface and live chat help

What to Know Before You File

In 2025, TurboTax still offers a free option—but it’s only free if your taxes are truly simple.

It’s a solid, user-friendly platform with helpful guidance, but the moment you need anything more than basic tax help, expect to pay.

Here’s what to do:

• Use a TurboTax eligibility checker before you start

• Know what forms your tax situation requires

• Compare plans and prices — don’t assume free means free

• Explore alternative platforms if you have freelance, crypto, or rental income

🧠 Pro tip: A little research now can save you from an unexpected $129 upgrade later.

Stay informed and save more during tax season

👉 Follow us at myfinancefuel.com for practical tax tips, refund updates, and real-world money advice made for Americans in 2025.