Whether you use the CD or the Download, the TurboTax program is installed on your computer.
After that, you just click on the icon to open the program whenever you want (you don't need the CD anymore). Be sure to click on Online from the top menu and 'Update'.
There is no difference in the installed program that resides on your computer, whether it came from the CD or a Download.
Here's more info on How to Install TurboTax from a CD.
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