Which Version of TurboTax Do I Need: If you’re looking for a cheap option for tax preparation, you’re probably considering Intuit’s TurboTax software. It is easy to use, affordable, fast, and more importantly, accurate.
Online tax programs such as TurboTax offer multiple versions for different users: basic, deluxe, premium, and even versions for self-employed or business owners.
The versions are priced according to complexity, and each is best for a different type of taxpayer. It’s difficult to determine which version will work best for preparing your income tax return, so here’s help in deciding on the right software for your needs.
Find Out What all versions can do
Four Tiers of Features: Basic, Deluxe, Premier, and Home & Business
Each version of TurboTax adds a tier of features to the next cheapest version, based on your tax preparation needs. There are four basic tiers.
As I said, I have used all four of these, at different stages of my life, and found them all well worth it. I found them much easier to use than H. R. Block’s TaxCut software, for example.
TurboTax CD/Download Versions
The Basic Edition
Available on Amazon for about $30. This is the cheapest version of TurboTax that you can get on a CD, but TurboTax also has two free online versions.
The Deluxe Edition
It has all the features of Basic, plus Deduction Maximizer, a feature that searches for over 350 different deductions and credits, and it’s Deductible, which will help you accurately value charitable donated items. It includes many tax forms, but not Schedule D.
Premier Edition
Turbotax recommends the Premier Edition, which has all the features of Deluxe plus more tools to deal with investments and rental property, to people who have stocks and bonds or rental income.
It calculates losses and gains on stocks, bonds, mutual funds, and employee stock plans, and calculates rental property income, expenses, and refinancing issues.
The program can upload information directly from many brokers, quickly and accurately, which is incredibly convenient.
TurboTax Home & Business
Intuit recommends TurboTax Home & Business for the self-employed. It guides users through the completion of Schedule C and maximizes deductions for your home office, vehicle, and other business costs.
It includes a simple way to enter income and expenses. Also, it creates W-2 and 1099 forms for your employees and contractors. And it walks you through start-up costs new businesses can deduct.
Check Out The Tips for Choosing a Version of TurboTax
Can I Share TurboTax Software?
When you purchase the TurboTax software (disc or download), it says that it “comes with 5 free federal e-files.” This is actually an IRS rule, not a TurboTax one.
If you’re using the online version, you can only do one return.
So if you’re deciding between two tiers, start with the lower level one and upgrade if you find it necessary.
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