☰
✕
Sign In

Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
New Member
posted Feb 5, 2023 9:34:04 AM

Should a tax return only using a W2 be considered a simple tax return?

I am getting forced to purchase the Deluxe package, however, I feel my tax situation is simple.

0 3 1731
1 Best answer
Level 15
Feb 5, 2023 9:36:03 AM

If you have a simple tax return, you can file for free with TurboTax Free Edition or TurboTax Live Assisted Basic. You can also file with TurboTax Live Full Service Basic at the listed price. A simple tax return is one that's filed using IRS Form 1040 only, without having to attach any forms or schedules. Only certain taxpayers are eligible.

Situations covered (assuming no added tax complexity):

  • W-2 income
  • Limited interest and dividend income reported on a 1099-INT or 1099-DIV
  • IRS standard deduction
  • Earned Income Tax Credit (EIC)
  • Child tax credits
  • Student loan interest deduction

Situations not covered:

  • Itemized deductions
  • Unemployment income reported on a 1099-G
  • Business or 1099-NEC income
  • Stock sales
  • Rental property income
  • Credits, deductions and income reported on other forms or schedules (for example, income related to crypto investments)

3 Replies
Level 15
Feb 5, 2023 9:36:03 AM

If you have a simple tax return, you can file for free with TurboTax Free Edition or TurboTax Live Assisted Basic. You can also file with TurboTax Live Full Service Basic at the listed price. A simple tax return is one that's filed using IRS Form 1040 only, without having to attach any forms or schedules. Only certain taxpayers are eligible.

Situations covered (assuming no added tax complexity):

  • W-2 income
  • Limited interest and dividend income reported on a 1099-INT or 1099-DIV
  • IRS standard deduction
  • Earned Income Tax Credit (EIC)
  • Child tax credits
  • Student loan interest deduction

Situations not covered:

  • Itemized deductions
  • Unemployment income reported on a 1099-G
  • Business or 1099-NEC income
  • Stock sales
  • Rental property income
  • Credits, deductions and income reported on other forms or schedules (for example, income related to crypto investments)

Expert Alumni
Feb 6, 2023 7:47:40 PM

You must be entering more than just one W-2 if you are being asked to upgrade to Deluxe TurboTax. Can your clarify if you are entering other forms or have anything else that would make your tax return complex?

Level 15
Feb 7, 2023 6:22:57 AM

@userelysels  See the list in my above post.  The first list is what you can have to file a simple return.  The second list gives you forms you cannot use with the Free Edition, you would need to upgrade.