turbo tax online vs TurboTax Desktop

[psa188]

turbo tax online vs TurboTax Desktop: what are the pros and cons of each? I'm more familiar with turbo tax online vs TurboTax Desktop.

[xmasbaby0]

Desktop Download

Every version has all forms and schedules

Forms mode to see all forms as you work and “what if” feature 

Can e-file up to five federal returns and their associated state returns

If you have more than five federal returns the additional ones can be mailed

Tax file is stored on your own hard drive

Always available even after tax season ends

State e-file fee is an extra fee.   State can be mailed to avoid e-file fee

Desktop is more cost effective for multiple returns for family members, etc.

Desktop software is available from Intuit or from various retailers—prices vary

Only works on full PC or Mac—not on any mobile devices

Desktop --unless you specifically buy federal  Deluxe only from a retailer-- will include the software for one specific state.   You can prepare as many returns for that state as the number of federal returns you prepare.  E-filing state returns is an extra fee which can be avoided by printing and mailing the states.   Additional--other--state software is an additional fee for the software. 

Online TurboTax software

Forms and schedules supported vary by which version you use

No Forms mode, but you can “preview” Form 1040 and Schedules 1, 2, or 3 before filing

One return per fee

Separate fees for federal and state returns

Each return needs its own account and user ID

Tax file is stored in online account for seven years

Online software only available on Intuit site

Can be used on any device with internet access

[baldietax]

@psa188 good summary by @xmasbaby0 - desktop has more functionality in particular forms mode if need to dive into details of the forms this can be invaluable, and can be cheaper if you have a more involved return with a lot of forms.  Not sure all the cost comparisons but the s/w is usually discounted via retailers like Amazon around Jan/Feb; for the Premier version plus $25 state e-file fee I usually pay around $100 to do my taxes.

For 2025 I believe they are doing away with the 'basic' desktop version which probably most overlapped with basic functionality that can just as well be done online, so if considering desktop check the functionality for Deluxe and Premier based on your situation.  We'll see in a few weeks when they release the 2025 version.

The only disadvantage for most folks of the desktop version is you have to download and install software to your machine, and keep up with latest OS and H/W requirements for those.  For some folks having s/w and tax data locally and not dependent on an online service is actually a strong preference and advantage.  For 2025 tax year as it stands you will need to be on Windows 11 or Mac OS 14 or above - and check other system requirements before purchasing.

[psa188]

One question:

does "No Forms mode" mean TT Online does not do forms at all, or just you can't view them in the program?

[xmasbaby0]

Desktop download has "forms" mode in which you can view any form or schedule as you prepare the return if you want to, and easily switch back to the interview screens.   Online TurboTax does not have forms mode.  With online, you can preview only your Form 1040 and Schedules 1-3.    In order to see any other forms or schedules you have to pay your online TT fees first, and then you can print/see the forms.