Will free turbotax handle working in two states?

Mike-Eddy · ‎March 12, 2021

Cynthiad66 · ‎March 15, 2021

Yes.

TURBOTAX GUARANTEES:

TurboTax Free Guarantee: $0 Federal + $0 State + $0 To File offer is available for simple tax returns only with TurboTax Free Edition. A simple tax return is Form 1040 only (without any additional schedules) OR Form 1040 + Unemployment Income. Situations covered include:
- W-2 income
- Limited interest and dividend income reported on a 1099-INT or 1099-DIV
- Claiming the standard deduction
- Earned Income Tax Credit (EIC)
- Child tax credits
- Unemployment Income reported on a 1099-G

Also, we're proud to offer the IRS Tax Free File Program delivered by TurboTax to hard-working Americans and their families who meet the 2020 IRS eligibility requirements.

The IRS Free File Program delivered by TurboTax is exclusively available online and has its own dedicated website at freefile.intuit.com. It isn't accessible from the "regular" TurboTax.com website.

Qualifications

To qualify for free 2020 federal and state tax returns through the IRS Free File Program delivered by TurboTax, you just need to meet one of these requirements:

Your 2020 household AGI is $39,000 or less;
You qualify for the Earned Income Tax Credit (EITC); or
In 2020, you served as active duty military (including Reservists and National Guard) with a maximum AGI of $72,000, and you have a military-issued W-2.

[edited 3/16/2021 | 9:42 am pst]

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mesquitebean · ‎March 15, 2021

@ Mike-Eddy

Both free products do include free state returns. And the 2 free products can handle working in 2 states.

TurboTax has 2 free products. I'll explain them both below. You have to meet one of the qualifications to use the second one I discuss.

The regular Free Edition is for very simple returns and not everyone can use it. Certain forms are not available in Free Edition and require an upgrade to Deluxe or higher, such as one of Schedules 1-3, itemized deductions, education credits, student loan interest, retirement savers credit, Child and Dependent Care credit, etc. Regular Free Edition also cannot handle itemized deductions, investment sales, rental/royalty property, business income/expenses, etc.

See this FAQ on some situations where one cannot use regular Free Edition:

FAQ: Why do I have to upgrade from Free Edition?
https://ttlc.intuit.com/community/upgrading/help/why-do-i-have-to-upgrade-from-free-edition/00/26379

The other free product (TurboTax IRS Free File Program) is fully-featured and can prepare all the usual forms and schedules. For example, in addition to Schedules 1-3 it can prepare Schedule C, D, E, F, etc., and enter K-1. But one has to meet one of the qualifications to use. See below:

To qualify for free 2020 federal and state tax returns through the IRS Free File Program delivered by TurboTax, you just need to meet one of these requirements:

Your 2020 AGI is $39,000 or less (if filing jointly MFJ, this figure is for the AGI of both spouses combined.) ; or
You qualify for the Earned Income Tax Credit (EITC); or
In 2020, you served as active duty military (including Reservists and National Guard) with a maximum AGI of $72,000, and you have a military-issued W-2.

If you meet one of those qualifications and want to use it, it is at this special website

https://freefile.intuit.com/

but see these 2 FAQs first, including how to switch without starting over:

FAQ: What is the TurboTax IRS Free File Program?
https://ttlc.intuit.com/community/choosing-a-product/help/what-is-the-turbotax-free-file-program/01/...

and

FAQ: How do I switch to the TurboTax IRS Free File Program?

https://ttlc.intuit.com/community/downgrading/help/how-do-i-switch-to-turbotax-free-file-program/00/...

There are also other free file options that may have different requirements at the IRS website:
https://www.irs.gov/filing/free-file-do-your-federal-taxes-for-free