I was filling out my taxes on Turbo Tax with the intent of filing my taxes jointly with my wife. However, we lived apart for part of this year and, probably as a result of that, I was told when I tried to do my state taxes on Turbo tax, that we would need to use married filing separate as our filing status.
Turbo tax took me to the following link (here) , which told me about how to file Married Joint Filing for federal but Married Separate Filing for state. The link told me "You can use TurboTax Online to file separate state returns, but we recommend you use the CD/Download software version to do this because you'll only need to pay for one TurboTax product (you can file up to five returns)."
However, after I paid $50 for this software version, it asked me to pay $45 per state for each of the state filings. Since we lived in 3 different states combined this year, that is $135.
I'm confused as to why I need to pay $45 per state when the link told me I would only need to pay for one TurboTax product that can file up to five returns?
The software does give you up to five FEDERAL e-files. But since you needed several different state software programs you pay for the software for each different state. Buying "Basic" was a mistake since it does not include any state software at all--if you purchased Deluxe with state that would have included the software for your first state. But each extra state is a cost of $44.99 with desktop software (with online it would be $50 each) and there is a fee to e-file state returns with desktop software. You can avoid the state e-filing fee if you print, sign and mail the state returns instead of e-filing them.
If I understand correctly, at this point, I would be better off financially simply keeping with Basic because Deluxe charges $45 per state after the first state, and as we need to file in three states getting Deluxe would cost me 2*45 (for the three states) + 80 (for Deluxe) = $170. In contrast, keeping with Basic will cost me 3*45 = $135. Is my reasoning correct?
Here is a link to the prices for the desktop (CD/download) software from TT:
Deluxe is $79.99 and includes one state; each extra state is $44.99 = $169.97 + tax
Basic for federal $49.00 and e states @ $44.99 = $184.96 + tax
So buying Basic and the state software programs cost you about an extra $15.
You could try contacting customer support to see if they would adjust it.
To call TurboTax customer support
They are available from 5 a.m. to 9 p.m. Pacific time
You are welcome.
Just do the math.