Have been using desktop Turbo Tax for years. Is there an advantage or dis-advantage to switch to online?

[xmasbaby0 · Accepted solution]

Desktop software

Every version has all forms and schedules

Forms mode to see all forms as you work and “what if” feature 

Can e-file up to five federal returns and their associated state returns

If you have more than five federal returns the additional ones can be mailed

Tax file is stored on your own hard drive

Always available even after tax season ends

State e-file fee is an extra fee.   State can be mailed to avoid e-file fee

Desktop is more cost effective for multiple returns for family members, etc.

Desktop software is available from Intuit or from various retailers—prices vary

Only works on full PC or Mac—not on any mobile devices

Desktop --unless you specifically buy federal  Deluxe only from a retailer-- will include the software for one specific state.   You can prepare as many returns for that state as the number of federal returns you prepare.  E-filing state returns is an extra fee which can be avoided by printing and mailing the states.   Additional--other--state software is an additional fee for the software.

Online TurboTax

Forms and schedules supported vary by which version you use

No Forms mode, but you can “preview” Form 1040 and Schedules 1, 2, or 3 before filing

One return per fee

Separate fees for federal and state returns

Each return needs its own email, account and user ID

Tax file is stored in online account for seven years

Can be used on any device with internet access

 When you use Desktop TurboTax, which you download to your own hard drive, you can prepare and e-file multiple returns for the cost of the software.  You can e-file up to 5 Federal returns—more if you mail the additional ones.  If you have multiple returns to prepare for family members, Desktop is more cost effective.

[MinhT1]

Please read this TurboTax page for a comparison between TurboTax Online and TurboTax Desktop.

[DoninGA]

The two biggest dis-advantages for using the online editions are you cannot directly access any forms, schedules or worksheets and you can only complete/file one tax return per account and User ID.

Other issues are that your tax return remains on the TurboTax servers for 7 years after the tax return has been filed making them susceptible  to hacking.

The price point is higher using the online editions since each edition has limitations until the use of the Premium edition which is currently $129 with a state program an additional $59.  Whereas the highest desktop edition is Home & Business which includes one free state program, currently $130.

[njponder]

If I switch from desktop to online, will my past tax information (e.g. Accumulated losseson rental property) be carried to the online version?

[DoninGA]

@njponder You can transfer your 2024 tax data file from your computer to the 2025 online edition.  Which is similar to the desktop editions where you can only transfer the prior tax year date to the current tax year.

[njponder]

Is the online edition  easier to use than desktop?

[DoninGA]

@njponder The online editions are designed for those who have little or no knowledge of how or what to enter on a tax return.  Therefore if you are comfortable with entering tax data and have some knowledge of what is needed on your tax return, you will find the online editions somewhat tedious.

[baldietax]

@njponder unless you have an issue with OS compatibility (Win 10 or Mac OS 13 end of life etc) there really is no advantage or reason I can see to move from desktop to online (even if you have some offer from Intuit to do so - they are pushing it heavily as their strategic direction).  Keep it simple and stay the course with desktop if able.

[njponder]

Thank you.  I am familiar with desktop and it offers flexibility to jump around.  I am not sure that flexibility is available online.