What Version of TurboTax Do I Need?

 

It’s tax season and if you’re like me, you have federal taxes to file. I not a CPA or a bookkeeper, but over the years, as a head of household and business owner, I have had to tackle filing taxes. I’ve been using Intuit’s TurboTax since I owned a Mac SE in the early 1990s. I’ve never gone wrong.

TurboTax is an interview-driven software product that updates tax rules and forms via the Internet. Each year, Intuit releases a new version of the software that improves the user interface and updates its processes based upon federal laws. It also handles state tax returns, but in Texas, we don’t file personal state income taxes.

There are four versions of TurboTax for personal returns. Which one should you get? Here are the names of the four versions.

  • Basic
  • Deluxe
  • Premier
  • Home and Business

Basic ($28.97 buy here): This is for citizens with no mortgage, no kids, and not a lot of deductions. Filers using Basic generally will take the standard tax deduction rather than itemizing them. If you usually file the simply tax return, the 1040EZ, then Basic is your choice.

Deluxe ($39.86 buy here): This version is if you think you will have more deductions if you itemize them than the standard deduction. If you own a home, mortgage, and pay property taxes, this version is for you. It also includes an audit risk meter to provide a final review before E-Filing your return for you.

Premier ($54.86 buy here): This has all the features of Deluxe. But added are ways to report investment income, like stocks, bonds, and mutual funds sold. If you own rental properties, this version is for you. It also has tools for retirement planning and IRAs.

Home and Business ($64.96 buy here): This is for business owners who file as sole proprietors using the Schedule C. You can create W-2s and 1099s for employees and those with whom you have contracted. It also provides depreciation allowances for business assets and guidance on small business rules.

There is one more version of TurboTax called TurboTax Business. This version is for filing small business tax returns, including returns for C and S corporations, multi-member LLCs, estates, and trusts. Sole proprietors and single member LLC owners can still use the TurboTax Home & Business (above).

All versions of TurboTax include five (5) E-Filings, meaning with one purchase you can also file taxes for your children, provided you don't have more than four kids with W-2s or 1099s.

The deadline for filing your taxes is April 18, 2017. For a limited time, Amazon has all versions of TurboTax on sale, so save money by getting your software early. 

Here is a side-by-side comparison chart between the four versions of TurboTax for the 2016 tax year:

 
TurboTax 2016 Basic
TurboTax 2016 Deluxe
 Basic
PC or Mac
Deluxe
PC or Mac
Premier
PC or Mac
Home & Business
PC or Mac
List Price$39.99$69.99$99.99$109.99
Amazon.comBuy Now
$28.97

 (Save 28%)
Buy Now
$39.86

 (Save 43%)
Buy Now
$54.86

 (Save 45%)
Buy Now
$64.86

 (Save 41%)
TurboTax.com$29.99$59.99$89.99$99.99
WalMart$28.97$49.97$78.36$89.97
BestBuy$29.99$59.99$89.99$99.99
Target$29.99$59.99$89.99$99.99
Compare Features
Basic Features & Step by Step Guidancexxxx
Guaranteed Maximum Refundxxxx
Prepare, Print, and efilexxxx
Import last year's tax dataxxxx
Import from Quicken or QuickBooksxxxx
Includes guidance on latest tax and health care lawsxxxx
Special Help to Maximize Your Deductions    
Extra help on 350+ deductions and credits xxx
Use ItsDeductible to calculate the value of donated items xxx
Audit RiskMeter reduces your chances of an audit xxx
Investments & Rental Property    
Extra guidance for investment sales
such as stocks, bonds, mutual funds
  xx
Help with rental property income and expenses  xx
New! Retirement and IRA tool
helps you get the most money back
  xx
Schedule C Businesses (self-employed)    
Includes Schedule C
for sole proprietors, consultants, and self-employed
   x
Maximize self-employment income and deductions   x
Create W-2s and 1099s for employees and contractors   x
Walk through small business start up costs and deductions   x
Other Features
Free federal e-files included5555
Available for PC or Macxxxx
Tech support by phone or chatxxxx
Includes 1 state tax return preparation at no additional charge xxx
Included phone support and guidance from CPAs  xx
New:  "My Analysis & Advice" tool
to help you understand your tax history
and maximize next year's refund
  xx

San Angelo LIVE! is compensated for each TurboTax sold. But TurboTax is the only tax software I have used extensively and can faithfully recommend.

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