If you use the ONLINE program you MUST use the Premier or better. If you use the DOWNLOADED version then you can use ANY of them since they all handle everything ... use Basic if you don't need a state return or Deluxe or better if you do need a state return.
What's the difference between TurboTax Online and the TurboTax CD/Download?
TurboTax Online and the TurboTax CD/Download products are very similar and both cover most tax situations. The majority of our customers choose TurboTax Online to confidently file their taxes.
Here are the big differences between the two:
- If you file online, we store all of your information on our secure servers. If you use the CD/Download, you need to save and store your own tax return.
- With TurboTax Online, you can work on your taxes from any computer or mobile device with Internet access. With the CD/Download, you install TurboTax on your computer and you can do your taxes without the Internet.
- The CD/Download product is a better overall value for people who prepare tax returns for their friends and family. It allows you to prepare and print unlimited federal returns and e-file up to five at no extra cost.
There are some tax situations that TurboTax Online does not cover. If you need to file corporate, partnership, and estate/trust returns you'll need to use the TurboTax CD/Download products.
What are the advantages of the TurboTax CD/Download software over the Online version?
We happen to like them both, but we recommend the TurboTax CD/Download software if you want to:
- Create multiple returns for family members (it's usually cheaper);
- File separate state returns for married spouses, especially in community property states;
- Play around with different tax scenarios;
- Access Forms Mode;
- Have complete control over the storage of your tax return and tax data file.
There are some situations that only the CD/Download software can handle, such as:
- Preparing or amending prior-year returns;
- Data imports from Quicken.
- Importing more than 500 stock transactions;
- Corporation, S-Corporation, Partnership, Estate, and Trust returns (these are handled in TurboTax Business).
Related Information:
How many times can I e-file using the TurboTax CD or download?
In accordance with IRS regulations, you can use the TurboTax software to e-file up to five (5) federal tax returns. You can prepare as many returns as you want, but only five can be e-filed.
For returns with multiple states, you can e-file up to three (3) states per federal return; the rest must be paper-filed (which probably isn't a big deal, as many nonresident state returns can't be e-filed anyway).
Our license agreement doesn't allow the use of TurboTax for commercial or professional tax preparation. If you need to e-file multiple returns and you are a professional tax preparer, take a look at our ProSeries or Lacerte software.
Related Information:
There are several considerations.
1) The desktop forms mode is mainly intended for trouble shooting and not direct form entry. In fact the license agreement specifically states that direct form entry and not using the interview mode will void the TurboTax accuracy guarantee since forms mode depends on the users expertise in knowing how to link various forms that the software does in the interview mode.
2) The desktop software is paid for in advance when the online is paid for when filing. If the forms were available prior to filing than anyone could simply copy the forms and mail then without ever paying for the use of the software. If fact you cannot even print the entire tax return online until you pay.
3) The desktop has additional features so as to keep the online product as simple as possible without confusing the average user. Most users of the desktop products are more sophisticated
computer users than the average online user.
4) All in all TurboTax marketing has determined that the more sophisticated tools would only be offered for the desktop products. In addition all versions of the desktop products have the same forms, the difference in the products is the detail and help in the interview while the online products have different forms depending on the version.
