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.
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.
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!