Can I help a family member prepare their return by using their online login?

[JanAug]

I'm a newly-retired CPA without access to my professional tax software (ProSeries).  I have three unpaid family returns to continue preparing, plus mine. Last year I used TTx desktop (download): $30 for the Basic version, with five e-filable returns, and using Forms mode, for Schedules C and D as needed.  I delivered PDF returns to my family members and created an authorization for each so I could file their returns without them having to come over in person.  That was all fine, but the problem now is that a year ago I still had my secure portal for two-way exchange of documents, and now I don't.

In exploring document options (not great) it occurred to me that maybe I should make each person purchase their own TTx subscription online, which has numerous advantages for the long term and may make my life easier. They filled out my organizers for years, so they should have no problem following the TTx interview for most of their income, and the 1099 import would handle Schedule D entries.  I can also provide their TTx files from 2021 for conversion, right? 

My question for the community is whether I can legitimately share their individual logins so I can do the actual preparation, without Intuit having some kind of security issue? 

My other question is one which the community can't answer, which is whether my family members will give me grief about forking over the cost of the Premier or S/E editions of TTx.  Not that they will have any choice, of course, as long as this solution works for me 🙂

[Critter-3]

If you are helping family for FREE and they give you access to their online accounts  then have at it ... only thing would be is have them finish the FILE tab and send their own returns.  FYI ... the 2 factor log in should be left on and they should give you the code themselves ... do not put your contact info in for theirs so they don't lose access to their own accounts. 

For those who qualify (AGI $73K or less) they can use one of the IRS FREE FILE options that open up mid January ... https://www.irs.gov/filing/free-file-do-your-federal-taxes-for-free

[rjs · Accepted solution]

You can certainly share your relatives' TurboTax Online accounts if they give you permission. They would have to tell you their user IDs and passwords. TurboTax wouldn't even know that it's not them using the account.

But with your background you might not be happy using TurboTax Online. It lacks many of the features that are in the CD/Download software. The biggest difference is that TurboTax Online does not have forms mode. There is no way to see the actual tax forms except by creating a PDF of the return, and there is no way to make entries directly on the forms. All entries have to be made in the interview. The lack of the forms mode also means that certain other features are not available, such as Data Source and QuickZoom to trace the data flow and see how numbers in the return were calculated. And there is no way to view or print a form that is not required for the tax return.

Also, TurboTax Online shuts down shortly after the October 15 extended filing deadline. When it comes back up in early to mid December, it's only for the next tax year. So there's a period of a month and a half or two months when you do not have access to the online returns at all. After it switches to the next tax year in December, you can only download the tax returns from the previous year (the PDFs or the .tax20yy files). You can't open them to review the entries or manipulate them in any way. You are strongly advised to download both the PDF and the .tax20yy data file after you file each return and save them on your own computer in case there are any problems accessing the online copies.

[rjs]

One other thought - just my opinion. If you've been doing their returns for years, I wouldn't bet on them having "no problem following the TurboTax interview." It's not like filling out an organizer. If you let them do the data entry, be prepared to check everything.

[JanAug]

OMG, thank you for all of that information- the lack of any forms mode is a huge consideration!  I was actually pleasantly surprised with the $30 desktop version in forms mode - and the ability to do three more returns for no additional cost since I had to pay for my own anyway.  

Sounds like it's a similar comparison between ProSeries (greatly loved for 30+ years) vs. ProConnect Online, which I used for a very few remaining paying clients - and which I absolutely loathed.  NOT professional, and not even ready for prime time IMO.   The only advantage was being able to pay just $60 per return.  I'm happy to be rid of it.  

Thanks again!  And happy 2023! 

[Mike9241]

one other problem with online is that you have no direct access to the data they used for entries they made. .   

[VolvoGirl]

Some more info on Online web version vs Desktop CD/Download program 

The Online web version is only good for one account and one return. You can log in and access your return from any computer. You only can see the forms after you pay and download the pdf. And you might need to upgrade to a higher version to enter different kinds of income. There are 4 Online versions. And you can add LIVE service or Full Service for expert help. In Online the fees are to prepare the federal and state returns (State is a separate charge) whether you efile or print and mail. Efiling is free and included.

You can see the prices and start an Online return here, 

https://turbotax.intuit.com/personal-taxes/online/ 

The CD/Download Desktop you buy and install the program, which can do unlimited returns. The returns are only saved on your computer and can not be accessed from anywhere else. And not saved at Turbo Tax. So Be sure to save Frequently and make backups. You get 5 federal efile for free. In Deluxe and above you get 1 state PROGRAM download to prepare unlimited state returns (in that state). Each state return including the first one is $20 early or $25 to efile or you can print and mail the state for free. The Desktop programs do not have the expert help that is available to add to Online versions.

Desktop also has many other features and advantages over the Online version. You can do more than 1 return. You can see and enter into the actual forms. It has a What-If worksheet. And you can use a lower version because all the Desktop versions have ALL the same forms. You just get more help in the higher versions. In online you have to upgrade to enter certain kinds of income. Like Premier for investments.

And the Desktop program is always available even after the year ends. Which is good if you ever need to amend your return after online website is closed or get audited and need your tax records.

You can buy the Desktop CD/Download program here,

https://turbotax.intuit.com/personal-taxes/cd-download/

[Critter-3]

As a Tax pro ... using the online program is not that bad ... you can enter a simple return in just a few minutes if you know what you are doing.  I highly recommend you let your family use any program they want and just have you check it before they send it ... looking at a PDF of the return should be enough for an old pro to find an issue and fix it. You need to wean them off eventually.  

And the downloaded version is far superior to the online one even if you do not use the FORMS mode to complete the return (and you should not if possible as some entries can void the accuracy guarantee and even keep you from efiling the return).     Unless you need to file a state return you can just use the Basic version  or Deluxe if you do need a state program.  You can efile 5 returns however you can print to mail an unlimited amount.  I already posted the IRS FREE FILE option for those who cannot use the TT FREE option.

[JanAug]

Haha, I think you could say the same about anyone who decides to switch to TurboTax, but I think it really depends.  Some clients are extremely savvy, pay attention, and are accountable for the collection and presentation of their information.  Others are obviously in the "just hand it all over thank god I don't want to think about this ever again" faction.  I had two very savvy clients for a number of years with extensive investments.  They would prepare their own TTx returns and send me their documents along with the .tax files, which I would convert, review, tweak if needed (bond amortization was a frequent issue back in the day) sign, and then efile as the paid preparer.  When I announced my retirement, these two were fine, especially as decent 1099 reporting for bonds actually exists now.  They know that they could call on me for a consult if they need one, but neither did so last year.  Several other clients asked me if they could do their own on TurboTax.  I gave permission to a few of them, and reviewed their first-year results, which were fine - which I had expected because their returns had become extremely simple since their retirements, and their only investments were in SEP-IRAs.   I told the others "no way" - because of their investment accounts.   

So it really does depend, which applies to my family members, and the hope was that those who could do some of their data-entry would - but it looks like I'm sticking with the desktop version, which means I'm stuck with all of the data entry anyway.  I'll see if I can do 1099 import for their brokerage statements - I didn't feel like dealing with it in the years I was winding down my practice (just getting clients to use my portal consistently was enough of a challenge) but I finally tried the import thing on my TTx return last year, and it was pretty awesome. 

[Critter-3]

The portal thru DRAKE is the bomb and I have migrated more of my clients to that option making my life much easier.  If you still want to use a professional program drake is really very affordable with top notch support. 

https://www.drakesoftware.com/products/pricing/

[JanAug]

Yeah, Online only solves the return delivery problem.  They'd have to super-redact their tax documents before scanning them to me.  Which for my record-keeping is not a problem compared to paying clients.   A pain for them, though.  

All of these are good things to consider.

[Critter-3]

Drake's integrated secure portal system only costs me $179 a year ... a small price to pay for an excellant tool.

[JanAug]

"You need to wean them off eventually"

True enough - eventually.  Though not to go it alone - their returns are not that simple.  It took me long enough to wean my clients off, which was not easy.  I'm happy to keep my mind somewhat engaged for my family members for a little while longer - my colleagues do the same.  It's good for the brain.  Got a couple of house sales coming up in the next two years, and I'm happy to see them through that (one of them with a long-time home office - yippee!) 

Preparing returns is the enjoyable part.  Administering a tax practice, transmittal letters, billing, state and city agencies, licensing, CPE, and CYA - that's the stuff I am happy to be rid of.  

When I'm more proficient at TTx, I'll come around to help answer questions.  

[rjs]

If you enjoy preparing returns, and you want to keep your mind engaged, consider volunteering for AARP Foundation Tax-Aide or another local VITA or TCE program.

[JanAug]

That's about what I paid annually for my portal service with all kinds of accounting-related add-ons for maintaining and communicating with a large database.  The price was certainly more than reasonable when I had 140 clients, but that plus the infrastructure is overkill for three family members who (now that I don't put them off in favor of paying clients) are done by April 15 and who don't pay me in anything other than love and affection.  And sometimes baked goods.   

I'm no longer subject to the IRS electronic security regulations - although I still take it seriously, obviously, and I'm only beginning my investigation.  This discussion has been very helpful.

I actually did a test drive of Drake some years ago as I looked at shrinking my practice pre-retirement, and I know that a lot of people love it - but I was still doing a lot of trusts at the time, and the conversion utility failed at properly transferring 1041 data, so I happily stuck with ProSeries.