What is the difference between the Home and Business and Self-Employed versions of TurboTax?

[cderbo]

I drive for Uber, but don't want to overpay for the Self-Employed version online if I can get the Home and Business version CD on sale.

[TaxGuyBill · Accepted solution]

They are basically the same thing.  "Home and Business" is the name of the CD/downloaded version and "Self-Employed" is the name of the Online version.

The CD/downloaded versions (such as "Home and Business") are only on your computer, and the Online versions (such as "Self Employed") are completely cloud-based. 

The Online "Self Employed" has some different "work flows" that navigate you a bit differently, but I would always recommend a CD/download version over an Online version.

[evonyahoo]

You can't cover 401K contributions for yourself or matching contributions by the business is what I'm seeing. You must have home and business for these deductions. If I'm wrong please tell me.

[AnnMac]

Two questions -

1. Why your preference for DVD vs online? I've always been DVD and keep the disk in my annual tax notebook, but am thinking about yielding this year to Intuit's push toward online. Only because I'm tired of the time it takes me to resist the push, while updating some of my Customer info. Aside maybe from better security, is there a good reason to stick with the DVD version?

2. Do both versions allow for reporting of employer and employee owner-only 401K contributions?

[AnnetteB6]

Second question first, both the TurboTax Online Self-Employed and the CD/downloaded TurboTax Home and Business can handle reporting of employer and employee owner 401k contributions.

Here is my opinion on the differences between online and CD/downloaded TurboTax:

• If you are accustomed to using one of the CD/downloaded versions of TurboTax and you use the Forms feature to view your actual tax forms, you would be disappointed with the online version of the program.  The actual tax forms are not available for viewing or printing until after you have paid to file your tax return.  
• The user interface is a bit different.  There are some navigation differences between the two versions.  
• If you have a need to file multiple returns, using the CD/downloaded version may be a better value.  

Take a look at the following article for another comparison of the different versions: What's the difference between TurboTax Online and TurboTax CD/downloaded versions?

[jscott1000]

I can tell you from personal experience if you have to file an update to your return  for anything other than the current year you are going to hate the online cloud based version.  I had to file an update  for the previous year and the online version had no provision to download previous year's version.  I had to buy the download version for that year and start completely over from scratch to duplicate my return in the software based on a saved PDF copy.  It was a huge pain.  If you have the download or DVD you can just load it up and go. 

[VolvoGirl]

@jscott1000  You didn't have to buy it again or start over to amend.  We could have helped you get the Desktop program and download the .tax2019 file from online to continue.

[jscott1000]

Yeah well I appreciate you are willing to help folks out but I literally purchased both versions the same day and I didn't see an option that says "the online version doesn't do what I need for it to do and therefore I don't have to pay again for the download version"  But it's nice to know for the future. 

Bottom line irrespective of price the download/DVD has features the online version does not have.  I will be a downloader for as long as that option exists. 

[grygerkr]

YAY! for TaxGuyBill.  A simple answer to a simple question!  Why couldn't TTax people just tell me that on the phone?

[taxmountain21]

I have been "stuck" for five days with the online version trying to enter my full $63,500 deduction from an individual 401k...or more specifically, after entering the information receiving the FULL deduction from this PRETAX entry....The screen only allows for half to be deducted which I think is the limit for a different 401k product.  This is for the INDIVIDUAL 401k and it seems the online version does not allow the full deduction...any advice??

[ErnieS0]

@taxmountain21 Your deduction amount may be limited by your income. 

To compute the maximum 401(k) employer contribution:

• Type self-employed retirement in Search in the upper right
• Select Jump to self-employed retirement
• Say Yes on Did [you] make a 2020 self-employed retirement plan contribution?
• Say Yes to Did [you] contribute to an individual or Roth 401(k) plan?
• In Individual 401(k) enter $19,500 under Elective Deferrals and $6,500 in Catch-up contributions if over 50.
• Check the box Maximize Contributions to Individual 401(k), TurboTax will compute the maximum amount for your employee and employer contributions.

Related Resource:

• Self-Employed Individuals – Calculating Your Own Retirement-Plan Contribution and Deduction

[taxmountain21]

Thank you.  The calculation verifies the maximum deduction. This is not the issue.  

https://www.fidelity.com/bin-public/060_www_fidelity_com/documents/customer-service/401k-self-employ...

$63,500 is the max...and TurboTax is not allowing it!!!

[VolvoGirl]

Couple things,  you said PRETAX entry above.  What did you mean by that?

And this is on Schedule C income?  Do you have enough Net Profit?    If you only have self-employment income you can only contribute up to your net profit reduced by the deduction allowed for one-half of your self-employment taxes.  See IRS publication 590 http://www.irs.gov/pub/irs-pdf/p590a.pdf

And 401K might use the same limits as an individual 401K.

[MK48]

Did you find a solution to this? I'm having a similar problem. 

[MK48]

Ernie, I'm having a related problem. I have input both Employee and Employer Match contributions for a solo 401k, but only the Employee contributions are being deducted from my income. The Employer contributions are not being deducted (they should be deducted as business expenses). It seems to be a problem with the software, as I can't find any other solution. Do you have any suggestions? Is there a problem with the software, in processing the Employer Match contributions? Thanks.