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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.
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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!
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.
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