TurboTax gives the impression that the product is specifically designed for completing your income taxes online in the best manner. Interfaces are clean and intuitive, and processes have a very logical flow. This strong design enables those who are unfamiliar with online taxes to be confident and comfortable throughout the filing and preparation processes. This characteristic makes TurboTax a great choice for someone who is new to filing taxes online.
TurboTax is the most feature-rich and highly functional online tax software in the industry, and as the old adage goes, you get what you pay for. Whether you are filing with the Federal Premier, Deluxe and Free or Home & Business Edition, chances are you will be paying more with TurboTax than you will with the competitor’s comparable edition. However, when you consider how much money a superior product like TurboTax can potentially save you, the relatively higher prices might not seem like such a big deal.
Federal Free Edition
This plan offers free federal and state tax returns. Since it doesn’t support most schedules, it’s only appropriate for very simple tax situations.
A huge point in TurboTax’s favor is its Absolute Zero guarantee on its Federal Free Edition. If you’re simply filing a 1040A or 1040EZ return, you won’t have to pay a dime for federal or state tax returns, which can be a big money saver this time of year, starting in January 2016.
However, like all free online tax software, TurboTax does have its limitations. If you’re using simple forms such as the 1040EZ, 1040A, and 1040, generally speaking, you can only file your taxes for free. Anything more complicated than that and you’ll likely have to pony up for the paid version. If necessary, making it a no-brainer to give TurboTax a try this tax season, Thankfully, TurboTax allows you to start with the free version and simply upgrade.
The deluxe version, the next step up, is for those who need to itemize deductions, and it is suitable for homeowners. This version is not free to file, plus there is an additional fee to e-file your state tax return but this can reduced by using coupons , I did a quick search for you and found this facebook page offering coupons and discounts for Turbotax.
Deluxe is ideal for filers with more complex tax situations, such as those involving itemized deductions and some miscellaneous income. It costs $54.99 to file a federal return and $39.99 for each state return.
If you earned miscellaneous income (indicated on Form 1099-MISC), TurboTax Deluxe allows you to log it in your return. You can log unlimited 1099s with the Deluxe plan.
If you’re an independent contractor, sole proprietor, or consultant, you may be liable for self-employment tax. The IRS requires you to file Schedule C or Schedule C-EZ if so. TurboTax Deluxe provides partial support for Schedule C and C-EZ filers. However, you can’t claim all applicable business credits and deductions with Deluxe – you’re only able to deduct vehicle mileage, phone expenses, and/or miscellaneous expenses up to $100, for instance. Other important credits and deductions, such as home office deductions, aren’t available with this version.
Deluxe customers have access to all previous tax returns filed with TurboTax, as well as all user data tied to their TurboTax accounts.
The premier edition can help you with investment and rental property income. This version also charges extra for state e-filing.
TurboTax Premier costs $79.99 for your federal return and $39.99 for each state return. It offers support for most common schedules, including B, D, and E, so it’s appropriate for filers with investment income, rental income, and other forms of non-wage income.
500 in ordinary dividend or interest income, you may need to file Schedule B, if you have more than $1. TurboTax Premier provides all necessary forms and support, including checks for relevant credits and deductions.
TurboTax Premier can help you file Schedule D, which covers capital gains or losses from the sale of securities, real property, and other assets, and walk you through relevant deductions and credits. You can import transaction records from your brokerage – potentially saving lots of time over entering each transaction manually. TurboTax automatically calculates your cost basis for multi-part transactions as well.
If you’ll be reporting income from rental properties or pass-through entities (such as S-trusts, corporations and estates and certain types of partnerships), you need to file Schedule E. TurboTax Premier provides all necessary forms for doing so and can walk you through all appropriate deductions and credits.
Home & Business
If you need to claim self-employment or small business income, the home and business edition is the version to use. This is the most expensive version, but it includes the most options. Again, it costs extra to prepare your state return.
TurboTax Home & Business costs $104.99 for your federal return and $39.99 for each state return. With full support for all deductions and credits related to Schedule C, it’s ideal for small business owners. TurboTax Home & Business comes with all the features and functions found in lower-priced plans, plus: