Table of Contents
- 1 How To Choose The Best Version Of Turbotax in 2021
- 2 The TurboTax Options Basic, Deluxe, Premier, Home & Business
- 3 Do You Own Your Own Home?
- 4 Do You Own Any Rental Property?
- 5 Do You Run Your Own Business?
- 6 Did You Sell Investments Like Stock, Bonds, Or Mutual Funds ?
- 7 What Does Each Version Of Turbotax Cost?
- 8 What Turbotax Products Are Available As Download vs CD ?
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Written by Mike Piper
How To Choose The Best Version Of Turbotax in 2021
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Updated for February 2021
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Stop asking “what version of turbotax do i need ? or Which Turbotax Do i Need” and read the following .If you’re looking for a reliable tax preparation option then you’ve probably heard of TurboTax. In this helpful guide we will explore all the different options available from TurboTax and which is the right turbotax to likely suit you best. For a full TurboTax Review see our write up for why you would chose it over other well known tax preparation software like Taxact or H&R block or credit karma
Let’s start with the Turbotax free edition which as the name suggests is a free version. It costs you nothing to prepare your federal return , that’s right .The same applies to your state return ,you will pay no money for both of these filing options.
|Basic||PROS: Tax credits, earned income credits. |
CONS: Does not include form 1040, only 1040A and 1040 EZ
|Deluxe||PROS: It has everything Basic does, plus more than 350 deductions and credits and a tool to check donations . |
CONS : Does not include Schedule D for investments , mortgages charitable donations or other write off’s
|Premier||PROS: Everything Deluxe does, plus extras to help you calculate losses or gains from stocks, bonds, mutual funds, and employee stock plans.|
CONS : Cant help with schedule C o business related taxes
|Home & Business||PROS: All of the above PLUS This is the best with help completing Schedule C for business owners.||$99.99|
It’s designed for those people who have very basic tax filing requirements and simple tax situations.For example if you only need one of these options then turbo tax free edition is good for you.
- W-2 income
- Limited interest and dividend income reported on a 1099-INT or 1099-DIV
- Claim the standard deduction
- Earned Income Tax Credit (EIC)
- Child tax credits
If however you require any of the following items then you will need to pay for one of TurboTax paid versions but keep in mind we offer the best Turbotax discounts every year which can save you 12 to 20%
- Schedule A: itemized deductions
The IRS gives you two options, you can choose from the standard deduction or an itemized deduction. If you decide to itemize you’ll have to fill out schedule a comma which allows you to report deductible expenses throughout the year for example medical or dental costs
- Schedule C: Business or 1099-MISC income, self employed
If you are self-employed then schedule C is most likely the right fit for you to report how much income you have made throughout the year.
- Schedule D: Stock sales
Schedule D is used to report capital gains and losses throughout the year from Stocks
- Schedule E: Rental property income
Schedule E is most commonly used when renting out property or renting out rooms in your house for income.
- Credits, deductions and income reported on Schedules 1-6 (like student loan interest deductions)
If your return is simple by nature then the free option is probably going to be suitable for you
The TurboTax Options Basic, Deluxe, Premier, Home & Business
How Much Does Turbotax Cost ?
There are four options when purchasing TurboTax and each one adds extra features than the one before it. Here we will outline these four options with a basic overview for you . So which turbotax to get will depend entirely on your personal situation.
As the name suggests this is used for very simple tax returns and it will e-file for you. It will also file your federal 1040EZ or the 1040 a depending on your requirements and is completely free.
This allows you to add itemize deductions where is the free basic version doesn’t. You can add expenses relating to mortgages or charitable donations or other write off’s. The deluxe version cost $54.99
If you have stocks, bonds, rental property, other investments, this is the program for you. It’s a very comprehensive package and allows you to get the best deductions possible and all for one cost of $79.99. It can also upload information direct from brokers and other financial institutions on your behalf
Hot Tip: Live in Canada and wish to know what Turbotax To Use ? , see our guide on Turbotax for Canadians
Home and business TurboTax
If you run a small business of any description then this is the soft with you. It covers all self-employment and helps you maximize your asset depreciation’s and tax deductions to give the best return and refund possible. It will guide you through schedule C to maximize business deductions and will also create your W-2 and 1099 form for employees or subcontractors. At $104.99 it sounds pricey but will save you in the long run.
Do You Own Your Own Home?
If you own your own home you can itemize deductions relating to it on the schedule A and for this you will need the TurboTax deluxe edition . The most common deductions are property taxes and mortgage interest which can amount to many thousands of dollars throughout the year.
Do You Own Any Rental Property?
For rental property you will need to complete schedule E on your 1040 form and the best option for this is TurboTax Premier where it is included.
You can depreciate your assets giving further texted actions with TurboTax Premier, the most common deductions are:
- Mortgage interest
- Depreciation on the property itself
- Repairs and maintenance
- Property taxes
- Travel costs associated with the property
- Home office expenses
- Vehicle and car expenses
Do You Run Your Own Business?
All income generated by a business needs to be declared on schedule C and for this the TurboTax home and business option is the only one that will assist you with this. It doesn’t matter whether your business is an LLC Corporation or anything less you can you schedule C to claim all the expenses pertaining to this operation Turbotax self-employed will offer you a great many deductions you will have otherwise missed .
Did You Sell Investments Like Stock, Bonds, Or Mutual Funds ?
Throughout the text year if you have sold any investments then you need to file a schedule D in for this you will need the TurboTax Premier option as it has the 1065 form included.
What Does Each Version Of Turbotax Cost?
The most common question if often centered around “how much does it cost to efile state with turbotax?” below are the options but ultimately which version of turbotax tax software you should use will depend on the types of things you need to deduct and declare.
How much does Turbotax basic cost ?
- TurboTax Basic – $29.99
How much does Turbotax Deluxe cost ?
- TurboTax Deluxe – $39.99
How much does Turbotax Deluxe + State cost ?
- TurboTax Deluxe + State – $49.99
How much does Turbotax Premier + State cost ?
- TurboTax Premier + State – $69.99 ($54.99 as a disc)
How much does Turbotax Home & Business + State cost ?
- TurboTax Home & Business + State – $79.99 ($64.99 as a disc)
How Much Does Turbotax Self Employed Cost ?
It varoes every year , see our deals page for all the best prices offered by Turbotax
If you have any turbo tax question we dont cover reach out to them direct for more information and advice
What Turbotax Products Are Available As Download vs CD ?
The online tax software version and the CD or downloadable products are very similar and cover the same things. It all comes down to ease-of-use, most people prefer to prepare and electronic filing of taxes online however , in some situations for example Corporation filing and trusts or a state returns you’ll need the CD download version which can be purchased from Amazon.
Are you a member of either of these institutions? if so follow the appropriate link to get a Turbotax discount for a higher tier product as each offers its members and customer a discount link, find out how to get yours today