Need to determine version to purchase for 2023 filing year

[joglidden]

My accountant passed away and I'm considering trying to do my taxes with Turbotax. Last year (2022) we (married, filing jointly) filed the following forms (and worksheets): 1040-ES, 8879, 1040-V, 1040, 1040/SR/RN Sched 1, 2, and 3, Schedule B, Schedule C, Schedule D, 8949, Schedule E p2 (for K-1), Schedule SE, 1116, 8889, 8995, 8936, Partner Basis Worksheet, IRA Worksheets, K-1 Reconciliation Worksheet, Keogh/SEP/SIMPLE Worksheet, Qualified Business Income Deduction Worksheet, Self-Employed Health Insurance Worksheet, Carryover Reports, IRA Distribution Report, Wages Report, 8998, UT (Utah) TC-547, UT TC-40.

I'm not sure the "Worksheets" were filed separately with the IRS, as they appear to be just a sub-part of the forms (e.g., 1040). If anyone has any advice, it would be most appreciated.

[tagteam]

If you want to prepare your tax returns online, you need TurboTax Premium and Utah State.

If you want to prepare the returns using an installed product on your computer, you can use any desktop version of TurboTax (and Utah State).

[rjs]

As tagteam said, you can use any version of the CD/Download ("desktop") TurboTax software. All of the CD/Download versions have all of the forms. The differences are in the interview. But Home & Business will give you more help and a more detailed interview for your business income, and for certain kinds of Schedule D transactions.

[joglidden]

I really appreciate the response. Just a quick follow-up, why would I install the desktop version over simply using the web app version? Is there some sort of security risk with one over the other?

[tagteam]

@joglidden 

The desktop versions all have "Forms Mode" which is not available in the online editions and can be invaluable in certain circumstances. 

[joglidden]

Ok, good to know. "Forms mode". I will look into this in more detail. Thanks for that insight.

Does the desktop version also have a capable "interview" that takes you through the steps? I'm not sure I'll even use this if it's an option, since I pretty much know what I need to produce.

Finally, does the desktop version allow one to electronically file? I do have an account with the IRS, and my accountant has done "e-filing" for years.

[tagteam]

The desktop versions do, indeed, have a decent interview throughout the process. Further, the e-file option is available provided the return is timely filed, no overrides are made on the forms, and documents do not need to be attached to the return. 

For your purposes, the Home & Business product would likely be the best choice.

[rjs]

Most of the interview in the desktop versions is identical to the interview in the corresponding online version. But the desktop software has additional features that are not included in the online versions.

You should enter all of your information through the interview. Doing the whole tax return in forms mode is complicated and error-prone, and deprives you of the guidance that the interview provides. The main value of forms mode is to be able to view the forms as they are created and trace the source of an amount on a form. There are a few very uncommon tax situations that are not covered in the interview and require an entry in forms mode, but those are rare.

One thing to be aware of with the desktop software is that the only copy of your tax return is on your own computer. You are responsible for backup and retention. TurboTax does not have a copy of the tax return, and cannot help you if you lose the file because of a computer malfunction, user error, or other mishaps.

[VolvoGirl]

The Online web version is different than the Desktop CD/Download program you install.  The pricing structure is totally different.  

Online you pay to prepare the return whether you efile or print and mail.  Efiling is free and included in all versions.  And state is a separate additional charge in Deluxe and above.   Oh and Online is only good for 1 Account and 1 return.

Desktop you buy and install the program which can do unlimited returns.  The returns are only saved on your computer and can not be accessed from anywhere else.  And not saved at Turbo Tax.  So Be sure to save Frequently and make backups.  You get 5 federal efile for free.  In Deluxe and above you get 1 state PROGRAM download to prepare unlimited state returns (in that state).  Each state return including the first one is $20/25 to efile or you can print and mail the state for free.

Desktop also has many other features and advantages over the Online version.  You can do more than 1 return.  You can see and enter into the actual forms.  And you can use a lower version because all the Desktop versions have ALL the same forms.  You just get more help in the higher versions.  In online you have to upgrade to enter certain kinds of income.  Like Premium for investments.

[joglidden]

Happy Thanksgiving everyone, and thank you again for your excellent advice and guidance. 

It is clear to me that "Home & Business" desktop version is the way to go. With regards to securing the files, I think a cloud backup is the way to go. Since this is sensitive private information, I'll need to consider how these save files are protected and encrypted, but using a cloud solution is clearly the way to go for backups. 

Yes, I'm used to e-filing my Federal returns, and mailing in my relatively simple State returns (Utah makes it easy), so that is not an issue. From the product matrix, it appears that "Home & Business", includes a single State. 

Lord help me if I have to do more than one return, but I suppose if in doubt, you could simply answer all the questions differently and see what the results are, and then compare the output. Fortunately, I can compare the results to what my professional accountant produced for me over the last few years and see what, if anything, is missing. 

One issue I can't quite envision is the SEP contribution bit. I typically shortchange the maximum allowable contribution at the end of the year, and then I'd have my accountant tell me what the exact additional allowable amount is (an optimization exercise). This prevents me from going through the "withdrawal" process if I overcontribute. Whereas I'm guessing Turbotax will simply ask me what I contributed, and there won't be any sort of optimization, but I could be wrong.  

[VolvoGirl]

What about doing more than 1 return?  In the Desktop program you can do unlimited returns and efile 5.  The rest you can print and mail.  If you want to test there is a What-If worksheet or you can copy a return with another name to test in.  Or start a new return by going up to FILE - NEW.