I don't want to make my tax and financial data available to Turbo Tax or have it stored on their servers, so I am looking to get the Downloadable software option (likely premier, given my financial situation). I don't really care about e-filing, I'm happy to print completed forms and mail them. Now my questions:
1. If I purchase and download the software (currently offered for $99), how much will I have to pay to get forms and updates next year when/if the tax codes change? Will I have to outright purchase the software again next year for another $99, or whatever the cost will be then?
2. The website mentions fees to file state tax returns. Is that for electronic filing, paper filing or both?
3. I see that Turbo Tax interacts with Quick Books (both Intuit products) but does it interact with any other financial management programs (I'm using Microsoft Money).
Thanks,
--Coyotte
My responses apply to the CD/Desktop version of TurboTax 2018 ***ONLY*** They do not apply to the online version.
1 - You have to purchase the program each and every tax year. For example, when I filed my 2017 return I purchased TurboTax Home & Business 2017. Now, for my 2018 tax return I've purchased TurboTax Home & Business 2018. The program is NOT updated from year to year. Tax laws change to much year to year for that to be a viable course. It would also impact one's ability to amend a prior year return. Therefore, a completely physically separate program has to be purchased each and every tax year.
2- With the desktop version, you pay for the 2018 federal program one time, and one time only. Once that program is installed on your computer you can complete as many federal tax returns as needed or desired. However, per IRS rules you can only e-file a maximum of 5 federal tax returns in a tax year. Anything after the 5th federal return has to be printed, signed and mailed to the IRS. There is no additional charge to e-file the first 5 federal returns.
For a state return, you purchase an "add-on" module for each state. The price varies as the tax season progresses. Right now the cost of a state program is $39. (will be $59 most likely, sometime after the middle of march). But with the desktop version you can save a bit of money if you initially buy the version that includes "one free state".
So after obtaining the state module and completing the state return, if you want to e-file that state return it will cost an additional charge. I don't recall exactly what that charge is right now. It's either $29 or another $39. However, there is no "filing charge" if you elect to print, sign and mail the state return.
You only pay the purchase price of a specific state module one time, and you can prepare as many tax returns as needed for that state with that module. But if you elect to e-file the state, then you will pay an additional charge for each state return that you e-file.
If you need to file a state return for more than one state, then you will pay for each state module needed. Do note that when filing state returns for more than one state, it is important that you complete the non-resident state return first, and complete the resident state return last. Otherwise, you may lose out on state tax credits if the states you're filing for have a reciprocal tax agreement so that you're not double-taxed by the states involved, on your income.
3 - TurboTax will only interact/import data from QuickBooks and no other money management program, including Quicken. Intuit no longer owns Quicken, having sold it off a few years ago. Now in some cases (and they're rare) if your 3rd party program will export to a .txf file, then you "MIGHT" be able to import from that .txf file. But if the format of the .txf file is not spot on perfect with what TurboTax expects, it just flat out will not work correctly.
Generally for a first time user of TurboTax, that first year is a real bear because you have to enter absolutely everything manually, one keystroke at a time. It can take hours. But once done, the programs ability to import from a prior year tax file that was done with TurboTax is a real time-saver. I think my first year it took me 4-5 hours to do it. But now, once I have all my tax reporting documents and everything, I can complete the tax return in about an hour, give or take. (I have a rather complex tax return, so it's not a simple matter of entering the W-2 and I'm done.)