Frugal LivingStarting a BusinessFinding a JobBusinessIndustriesReal EstatePersonal FinanceSelf-EmploymentScams & FraudInsurance

Which Version of TurboTax Do I Need?

Updated on January 31, 2017
Consider your lifestyle and stage of life when deciding which version of TurboTax software suits your needs best.
Consider your lifestyle and stage of life when deciding which version of TurboTax software suits your needs best.

Which TurboTax Is Right for Me?

TurboTax self-preparation programs are incredibly user-friendly and money well-spent. They use an interview process that simply and clearly asks you questions and, depending on how you answer, guides you to the next section.

Perhaps the most difficult thing about TurboTax is which version best fits your needs. I have used the Basic, Deluxe, Premier, and Home & Business versions over years, based upon what was going on in my life, and have been equally satisfied with each version.

Features of TurboTax Software

Each version of TurboTax builds on the previous program, meaning they each add a few extra features based upon your tax preparation needs. As I mentioned previously, each program walks you through an interview. You simply fill in the appropriate answers. TurboTax then double checks the information you have entered, and voila, your tax return is complete.

The software can also import your data from the prior year’s TurboTax, Quicken, Quickbooks, or other tax preparation software. Since this feature eliminates the need to input tons of data (and therefore, helps avoid errors) this can be a huge timesaver. TurboTax also allows you to import your W-2 and 1099 data from over 100,000 companies.

Although the software is super simple to use, if you need to speak with a tax professional, each version of TurboTax allows you to call one for a small fee.

Finally, TurboTax allows you to e-file up to five tax returns for free (I do my kids' taxes on the same program).

Which TurboTax Version Meets Your Needs?

Version
Best for:
Basic
Income, a few deductions
Deluxe
Basic, with added searchable deduction maximizer. More than 350 deductions and credits included, as well as tool to check value of charitable donations.
Premier
Deluxe, with added tools to calculate losses or gains from stocks, bonds, mutual funds, and employee stock plans.
Home & Business
Premier, with help completing Schedule C for business owners.

Basic

When I used TurboTax Basic, it fit my needs when we received W-2s and 1099s for our income, owned a home, made payments on cars and used them for work, earned bank interest (back when banks paid interest), and had kids in school. I would consider this a straightforward tax situation: a little income, a few deductions, and poof…DONE! I should note that this is a very inexpensive program to purchase—generally less than $30—a very small price to pay for what you get.

Deluxe

As the kids got older, and our taxes became a little more complicated, TurboTax Deluxe was the right step up. It has all the same features that Basic provides, but it also adds Deduction Maximizer, a feature that searches for over 350 different deductions and credits to ensure you get the maximum refund. It also adds ItsDeductible that will help you accurately value charitable donated items.

Premier

As life becomes more complicated, so do your taxes. Have some stocks and bonds? Perhaps a rental? Then TurboTax Premier is going to make your life much easier. This program will provide the extra guidance you need to calculate your losses (oops!) and gains (yeah!) of stocks, bonds, mutual funds and employee stock plans. The program can upload information directly from many brokers, and uploads the necessary information quickly and accurately. And, if you own a rental property, this program will help calculate rental property income, expenses and refinancing.

Home & Business

Do you own your own business? TurboTax Home & Business will easily guide you through completion of the Schedule C and maximize home office, vehicle and other business deductions. There’s also a simplified income and expense entry section so you won’t miss a single deduction you’re entitled. It also creates W-2 and 1099 forms for your employees and contractors. And if this is a new business, the program walks you through what start-up costs new businesses can deduct.

CD or Download?

Something else to consider: You can order TurboTax online and receive either a CD in the mail or download the program directly to your computer. Now, I was resistant to ordering a downloaded version, even though they usually cost less. However, after using TurboTax for years, I can tell you that once you insert the newly purchased CD into your computer, it needs to go online to update and download tax information that may not have available at the time your CD was manufactured. Because TurboTax may need to update the information from the internet anyway, if you are interested in saving a few bucks, buying a download may be for you.

TurboTax vs. H&R Block

Several years ago, I gave H&R Block’s TaxCut home preparation software a try. It was much less user friendly, so I quickly returned to TurboTax. I can’t comment on how it is now. Because I have been very happy with TurboTax, there has been no reason to try the competition again.

Finally, TurboTax offers an Audit Support Option that can be purchased for a small fee. This Audit Support supplies you with a tax professional in the event you are audited. I believe this is a small price to pay for a big piece of mind.

Comments

    0 of 8192 characters used
    Post Comment

    • profile image

      LAH 7 months ago

      TurboTax does not clearly disclose the total cost of filing a fed and state return, e-filing etc. Not fair at all. The gov't should provide the software as a service to the citizens. Instead they let TurboTax and their lobbyists rip off consumers. Shameful. #discloseyourfeesTurbotax

    • profile image

      DoktorThomas 8 months ago

      Generally a nice review, but not anymore in depth than Intuit's inadequate description of its products.

      Intuit is consumer unconscious and really sells a pig in a poke.

      Having expressed my general dissatisfaction with the merely adequate nature of their products (I have begrudgingly used them for 15 years); unfortunately, there are no other reasonable alternatives despite what BlockHead might opine.

      My issue with your view is the same as with Intuit's. Millions of people have S corporations, yet no one ever addresses which person tax software they should use. The 1120s business choice is clear. The personal one for S corporation owners remains a mystery every year.

      I'd like to see them average the price and sell a one-size-fits-all, choose-as-you go product for personal taxes. But that would be too simple for even Intuit, which I am not. ©2017

    • profile image

      f brustman 9 months ago

      I agree with Mike. It reads like one of their ads. Will TT Deluxe for 2017 handle federal 1040 sched. E? Last year's version did.

    • profile image

      John 10 months ago

      Thanks for the article! I do have one question for you:

      I have self-employed income (around $12,000) and also have job where I will receive a W2. Which version of TT do I need?

    • profile image

      JRS 10 months ago

      Which version provides forms for NOL carryforward

    • Tall Clovers profile image
      Author

      Tall Clovers 22 months ago from Southern California

      Hi Mike- I am the writer of this HubPage, a mother of 4, grandmother of 3 (with one more on the way), and currently babysitting as I write this response. Clearly, you could tell I am a big fan of TurboTax. However, I am in no way associated or affiliated with TurboTax. However, I did mention to my husband, just today, that we need to buy the Home and Business version this year because we started a Vintage Party Rental Business this past year. Seriously, its the easiest way to do your taxes...

      Thank you for reading my HubPage! Happy Tax Return Season,

      Tallclovers

    • profile image

      Mike 22 months ago

      Anybody else feel like TurboTax is paying for this article?