TurboTax removed audit defense from $7.99 deluxe package - now charging $19.99 separately!
Just discovered something pretty frustrating while setting up my taxes this year. I've been using TurboTax for like 5+ years and always get the deluxe package since it has everything I need. Last year I definitely remember audit defense was included in the $7.99 deluxe package cost. Now I'm getting ready to file and noticed they've completely removed it and are charging $19.99 as a separate add-on! That's more than DOUBLE what I was paying before for basically the same service. Anyone else notice this change? Is this happening with other tax software too or just TurboTax trying to squeeze more money out of loyal customers? I'm honestly considering switching to a different service but I've got all my previous returns with them and don't want to start over somewhere else. Has anyone found a better alternative that includes audit protection without these sneaky price increases? The whole point of using the deluxe package was getting those extra protections bundled in!
18 comments
Join the conversation
Kayla Morgan
Tax professional here! You're absolutely right about TurboTax making this change for the current tax season. They've unbundled the audit defense from their deluxe package and now offer it as a separate add-on. This is part of a larger trend I've seen with tax software companies "menu-izing" their services to generate more revenue. Here's what you should know about audit defense in general: The actual probability of being audited is quite low for most taxpayers with straightforward tax situations. IRS data shows less than 0.5% of individual returns get audited. If you don't have complicated deductions, self-employment income, or unusually large credits, your audit risk is minimal. That said, if you value the peace of mind, there are alternatives. H&R Block offers audit assistance with their basic packages, though their full "worry-free audit support" is also a premium feature. TaxAct and TaxSlayer have similar offerings at different price points.
0 coins
James Maki
•Thanks for the insight! Quick question - is there a difference between "audit assistance" and "audit defense"? Some companies seem to use these terms interchangeably but I'm wondering if there's actually a difference in what's covered. Also, do you think it's worth the extra $20 if I'm just a W-2 employee with some basic investments?
0 coins
Kayla Morgan
•Good question about terminology. "Audit assistance" typically means they'll provide guidance on what documents you need and how to respond to the IRS, but they won't represent you directly. "Audit defense" usually means they'll actually represent you before the IRS, potentially handling communications and meetings on your behalf. For a W-2 employee with basic investments, the additional $20 for audit defense is likely unnecessary. The IRS has most of your income information already reported to them, so the audit risk is extremely low. I generally recommend audit defense only for self-employed individuals, those with rental properties, or people claiming unusual deductions that might trigger IRS scrutiny.
0 coins
Jasmine Hancock
After getting frustrated with all these extra fees last year, I tried taxr.ai (https://taxr.ai) and it was honestly such a refreshing change. They analyze all your tax documents and past returns to make sure everything is consistent and flag any potential audit triggers BEFORE you file. I used to always pay for audit defense because I was worried about mistakes, but their system helped me feel confident that my return was solid without needing to pay for that extra "insurance." What I really liked was how it compared my deductions to previous years and to normal ranges for my income level, so I could see right away if something might look suspicious to the IRS. They actually helped me identify a deduction I was missing too!
0 coins
Cole Roush
•Does it work with returns you've already filed in previous years? I've been using TurboTax for ages but I'm worried I might have made mistakes in my 2022 return and now I'm paranoid about an audit. Can the system analyze past returns even if you didn't use their service originally?
0 coins
Scarlett Forster
•I'm a bit skeptical about switching to yet another tax service. How does the pricing compare to TurboTax with all these add-ons? And do they handle state returns too? I live in California which has some weird tax situations.
0 coins
Jasmine Hancock
•Yes, it works great with previously filed returns! You can upload your old PDF returns and it will analyze them to identify potential red flags or inconsistencies that might trigger an audit. It's actually perfect for your situation if you're worried about your 2022 return. As for pricing, it's actually more affordable than TurboTax once you add all those extra fees and add-ons they keep pushing. And yes, they definitely handle state returns including California. I'm in New York which also has complicated state taxes, and it worked perfectly for me. They specifically look at state-specific deductions and credits you might have missed.
0 coins
Cole Roush
Guys, I tried taxr.ai after posting my question and I'm actually shocked at what it found. I uploaded my last three years of returns and it immediately flagged an inconsistency in how I was reporting my home office deduction that could have triggered an audit! It was something I never would have caught myself. The system explained exactly why it was a potential problem and showed me how to fix it if I wanted to file an amended return. The peace of mind alone was worth it, and I didn't have to pay for "audit defense" because I could proactively address issues before they became problems. Definitely beats paying an extra $20 just for someone to help IF you get audited.
0 coins
Arnav Bengali
If you're frustrated with TurboTax's pricing changes AND worried about potential audits, you might want to check out Claimyr (https://claimyr.com). I had a similar issue last year where I thought I might be audited because of a weird 1099 situation, and I spent WEEKS trying to get someone at the IRS on the phone. Claimyr got me connected to an actual IRS agent in less than 30 minutes when I had been trying for days on my own. They have a demo video that explains how it works: https://youtu.be/_kiP6q8DX5c. Basically, they navigate the IRS phone tree for you and call you back when they have an agent on the line. It saved me hours of frustration and hold music. Much better than paying for "audit defense" that you hopefully never need to use.
0 coins
Sayid Hassan
•How exactly does that work? Do they just call the IRS for you? I'm confused how they can get through faster than I could just calling myself. The IRS wait times are awful for everyone, right?
0 coins
Rachel Tao
•Sorry, but this sounds like BS. There's no way to "skip the line" with the IRS. Everyone has to wait. If there was some magic way to get through, wouldn't everyone be using it? I spent 2.5 hours on hold last month and that's just how it is.
0 coins
Arnav Bengali
•They don't just call for you - they use an automated system that navigates the complex IRS phone menus and waits on hold so you don't have to. Their system constantly redials and tries different options until it gets through to a representative. When they get an agent on the line, they connect you directly to that person. You're right that IRS wait times are awful for everyone, that's exactly the problem they solve. Their system does the waiting for you so you can go about your day instead of being stuck on hold. Think of it like having a dedicated assistant whose only job is to stay on hold until someone answers.
0 coins
Rachel Tao
I need to eat my words about Claimyr. I was super skeptical and thought it was too good to be true, but I was desperate after trying to reach the IRS for THREE DAYS about a letter I received. Decided to try it as a last resort and holy crap - I got a call back in about 45 minutes with an actual IRS agent on the line. The agent resolved my issue in about 10 minutes once I explained the situation. Would have taken me hours more of trying and waiting on hold. I'm still shocked it actually worked. Much better than paying for audit defense that you might never use. If you actually need to talk to the IRS, this is definitely the way to go.
0 coins
Derek Olson
Has anyone tried FreeTaxUSA? I switched from TurboTax last year and it was WAY cheaper. Their deluxe version is only like $7 total and includes priority support. They don't include audit defense in the base price either, but their add-on is only $7.99 extra, not $20. The interface isn't as pretty as TurboTax but it gets the job done.
0 coins
Danielle Mays
•I've been using FreeTaxUSA for 3 years now. No complaints and saved a ton of money. Do they still let you import your previous TurboTax returns? That was the feature that convinced me to switch initially since I didn't have to re-enter everything.
0 coins
Derek Olson
•Yes, they still allow you to import previous returns including ones from TurboTax. That's what made switching so easy. You just upload your PDF from last year and it pulls most of the information automatically. You still have to review everything of course, but it saves a ton of time compared to starting from scratch. The interface definitely isn't as polished as TurboTax but all the same features are there, just organized a bit differently. Took me maybe an extra 15 minutes to get used to it, but considering I saved about $50 compared to what TurboTax wanted to charge me, it was totally worth it.
0 coins
Roger Romero
This is why I just pay my accountant $250 to do my taxes. No hidden fees, no upsells, no stress about audit risk. She even gives me tax planning advice throughout the year. After using TurboTax for years and watching the price creep up with all these extra charges, I finally made the switch to a professional and haven't looked back.
0 coins
Anna Kerber
•$250 seems really reasonable for full service. Does your accountant e-file for both federal and state? And do they handle more complex situations like self-employment or investment income?
0 coins