TurboTax is software that helps users file their federal and state taxes, and it comes in several versions, each designed for a specific financial and tax situation. TurboTax Basic, for example, is the more simple package and is recommended for users who do not have complex financial transactions to report on their taxes, while the Deluxe edition has some extra features for users who have more to report. Knowing how each is different can help you identify what kind of user you are and which version is more appropriate for your needs.
TurboTax Self-Employed will ask you simple questions about you and your business or side-gig to help you find the tax deductions and credits you are eligible for based on your answers, saving you your hard earned dollars so you can keep more money for your business. TurboTax online vs download - any differences? I live with my GF (not common law), I own a rental property and she just does a straight t4 return. First of all, is there ANY difference between the online version and download version of this software?
Suggested User
TurboTax Basic is recommended for users with few deductions and expenses. More specifically, users who rent rather than own their property, do not pay state income taxes, do not make sizable charitable donations and have not sold investments over the last fiscal year will probably find that the Basic package meets their needs. Users who own a home, file state returns, have considerable medical expenses or make large donations to charity might find the Deluxe version more appropriate for their situation.
Features
Both versions of TurboTax come with features such as included IRS forms, online help, access to the free Federal E-file system and an integrated accuracy-checking program that makes sure you're adding everything up correctly. TurboTax Deluxe, however, comes with a few extra features, such as a program that looks through your information to identify additional deductions or credits you may not be aware of and options for inputting information about changes in your career, assets or financial situation over the last year.
Price
The added functionality of TurboTax Deluxe comes with a higher price tag. At the time of print, TurboTax Basic was offered at $34.95, while the Deluxe version was available for $49.95, with additional costs attached to each for state tax filing. Although the idea of sending money to the IRS and having to pay extra for filing may not seem that agreeable on tax day, the difference is probably worth it if your taxes are complicated enough to merit using TurboTax Deluxe, especially when errors on your tax files can trigger an audit.
Audit Risk
In addition to the accuracy checker included on both versions, TurboTax Deluxe includes the Audit Risk Meter, which evaluates your information to help predict the likelihood of an audit and gives you suggestions on how to lower that risk. The program also alerts users with a red flag every time they input a piece of information that is likely to result in an audit; this is a very useful feature for users with more complex financial situations who are at greater risk of making mistakes and being audited.
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Companies such as Intuit help taxpayers prepare complex returns using a keyboard and mouse instead of pen and paper. Taking advantage of a computer's ability to manage information quickly, Intuit's TurboTax applications make filing tax returns as simple as answering questions. Multiple versions of TurboTax exist, such as TurboTax Deluxe and TurboTax Home & Business. Because they have different prices and provide different features, compare the two programs carefully before choosing one.
How TurboTax Works
TurboTax applications run on the Web and make it possible for people to prepare their taxes anywhere an Internet connection exists. The TurboTax website provides a wizard that helps you prepare your tax return accurately. TurboTax Deluxe and TurboTax Home & Business both provide tax experts that can assist you by phone or by using chat. Your information is secure when using any TurboTax version because you create a secure password and user ID when you sign up. You don't have to finish your return in one sitting because the site remembers everything you've done.
TurboTax Deluxe
Less expensive than TurboTax Home & Business, TurboTax Deluxe provides enough features that many taxpayers need to prepare their returns successfully. TurboTax Deluxe helps you maximize deductions and receive all credits for which you qualify. You don't have to enter information from your W-2 and 1099 forms manually because the program can copy that data into the application if your employer or financial situation makes that information available to TurboTax. As you answer questions that the wizard provides, TurboTax calculates your current tax liability or refund and displays it on every page.
TurboTax Home & Business
TurboTax Home & Business is the company's most advanced tax-preparation program. It has all the features the less expensive versions have and gives you additional tools to help you report business income. This is useful for business owners because TurboTax Home & Business can find money-saving business tax deductions and help business owners identify deductible expenses that can help them minimize tax liabilities. Intuit recommends choosing TurboTax Home & Business if you are a single-member LCC, a sole proprietor or a 1099 contractor. Intuit also suggests using this version if you file personal and business taxes together, prepare W-2s and 1099-MISC forms, or receive income from self-employment or a side job.
General TurboTax Benefits
Intuit assures taxpayers that its results are accurate. It also notes that the company will pay any penalty and interest you incur if the IRS discovers a mistake due to a TurboTax calculation error. When you're ready to submit your return, you have multiple options. You can print out all the tax forms that TurboTax created and mail them to the IRS. You also have the option to let TurboTax file your return electronically. Each TurboTax version performs a final scan of information you've entered, looks for potential problems and helps you correct them.
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About the Author
After majoring in physics, Kevin Lee began writing professionally in 1989 when, as a software developer, he also created technical articles for the Johnson Space Center. Today this urban Texas cowboy continues to crank out high-quality software as well as non-technical articles covering a multitude of diverse topics ranging from gaming to current affairs.
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