Questions before purchasing Turbotax

Forum|Forum|5 years ago
January 13, 2021
3 replies
21 views

I want to make certain that some version of Turbotax can handle our 2020 tax situation before I purchase.

It's actually not complicated at all since my wife and I are newly retired, with not much income last year, due in part to COVID-19. However, there are a few foreign-related items that I fear could cause problems with doing things with tax software.

In a nutshell, here's what we are dealing with for 2020 (figures are rounded):

Foreign Pension #1 (wife): US$ 5,000

Foreign Pension #2 (husband): US$ 600

Self Employment #1 after expenses: US$ 1,300

Self Employment #2 after expenses: US$ 800

US Social Security: US$ 4,000

Bank Interest (US and foreign): US$ 100

US Dividends: US$ 4,250

US Cap Gains Distributions: US$ 12,250

less 2019 overpay/estimated tax: ( - US$ 1,750 )

less 2019 Foreign Tax Credit: ( - US$ 750 ) General Limit

less 2019 Foreign Tax Credit: ( - US$ 10 ) Passive

And that's it.

As I wrote, above, I want to make certain that some version of Turbotax can handle our 2020 tax situation, including the foreign pension income, before I purchase. Also, which Turbotax product would be best so there are no problems dealing with our situation? Please let me know. Thank you.

DawnC

Employee Tax Expert

TurboTax can definitely handle your situation. Since you have self-employment income, you will need to use either TurboTax Self-Employed (if using TurboTax Online) or TurboTax Home & Business (if using a desktop/download version).

So, basically, you will just need to choose between the online version and the desktop version. What are the advantages of the TurboTax CD/Download software over the Online version? This link may make that decision easier.

Either version will cover self-employment as well as foreign income and tax credits, capital gains, dividends, and everything you have listed above.

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Garbanzor29Author

Level 2

I realize I left off two things, most notably the need for Form 2555:

1. Wage Income (foreign, earned outside US): US $6,000

and

2. Form 2555, Foreign Earned Income Exclusion: ( - US $8,100 )

to exclude the foreign wages and the foreign self-employment, combined

I'll work on my PC at home. I just looked at the supported forms and it seems as if the TurboTax Home & Business can handle the additional things, too, so that's what I'll plan to get.

Thanks!

VolvoGirl

Level 15

Actually you can buy any of the CD/Download Desktop programs. All the Desktop programs have the same forms. But you do get more help in the higher versions like Home & Business.