When you pay for TurboTax Online, you're charged a tax preparation service fee. The prep fee is charged whether you receive a refund or have a balance due to the IRS.
TurboTax Free Edition (and TurboTax Live Basic) are intended for taxpayers with very simple returns that can fit on the new 1040 form without any schedules.
Simple tax situations covered in TurboTax Free Edition:
- W-2 income
- Limited interest and dividend income reported on a 1099-INT or 1099-DIV
- Claiming the standard deduction
- Earned Income Tax Credit (EIC)
- Child tax credits
Situations not covered in TurboTax Free Edition include:
- Itemized deductions
- Business or 1099-MISC income
- Stock sales
- Rental property income
- Credits, deductions and income reported on schedules 1–6, such as the Student Loan Interest Deduction