Why Some Military Members Still Have to Pay for TurboTax

Many military members expect to file their taxes for free, especially given the financial benefits and support available to service members. However, some still face unexpected fees when using tax preparation software. If you’ve ever wondered why TurboTax Free isn’t always available to all military personnel, the answer lies in rank, tax complexity, and additional filing needs. While TurboTax provides free filing for many enlisted service members, not everyone qualifies. Understanding why some military personnel still have to pay can help avoid surprises when it’s time to file.

Eligibility for Free TurboTax Military Filing

TurboTax offers a free filing option for enlisted active-duty military members and reservists ranked E1 through E9. This includes federal and state tax filing, making it a valuable benefit for lower-ranking service members.

However, if a military member is an officer or holds a higher enlisted rank, they may not qualify for the free TurboTax military edition. Instead, they might have to upgrade to a paid version, depending on their tax situation. 

Complex Tax Situations May Require an Upgrade

Even if a military member qualifies for free filing based on rank, certain tax situations can require additional forms not covered under the free version. For example, if a service member has:

• Self-employment income from a side business, freelance work, or gig jobs
• Rental property income that requires special tax reporting
• Itemized deductions for mortgage interest, medical expenses, or other significant write-offs
• Investment earnings that involve capital gains, dividends, or stock sales

These situations require tax forms beyond what free TurboTax covers, meaning military members would need to upgrade to a paid version to complete their return.

State Tax Filing Fees Can Still Apply

Even when federal filing is free, some military members may still have to pay for their state tax return. While TurboTax offers free state filing in many cases, certain states require additional fees.

Military personnel who maintain residency in states with no income tax (such as Texas, Florida, or Nevada) may not have to worry about this issue. However, those filing in states with tax obligations might encounter unexpected charges. 

Married Filing Jointly May Require a Paid Version

For military members who are married, the way they file can impact their ability to use TurboTax. If a service member’s spouse has a more complex tax situation—such as self-employment income or significant deductions—they may be required to upgrade to a paid version of TurboTax.

Even if a military member qualifies for free filing, combining their tax return with a spouse’s income and deductions may result in a version that requires an additional cost. This is especially true for those who own businesses or investments or claim itemized deductions.

Alternatives for Truly Free Military Filing

For military members who don’t qualify for free TurboTax, other free filing options may be available. Military OneSource MilTax offers free tax preparation for all active-duty members, regardless of rank or tax complexity. 

Additionally, on-base Volunteer Income Tax Assistance (VITA) offices provide in-person tax help from IRS-certified professionals. Checking these resources before filing can help military members avoid unnecessary costs while ensuring their taxes are prepared accurately.

While TurboTax Free is available to many enlisted military members, it doesn’t cover everyone. Officers, senior enlisted personnel, and those with complex tax situations may still have to pay for filing services. State tax fees, joint filing with a spouse, or additional tax forms can lead to unexpected charges. Understanding what’s included in TurboTax’s free military filing offer can help service members plan and choose the best option.