Most businesses and tax firms now use advanced tax software to reach high productivity and efficiency at work. Many of them have also stepped up to embrace tax software hosting solutions and benefit from the power of cloud technology. However, another essential aspect is selecting the correct tax software before deciding how to host or access tax software.
Many software options are available for tax professionals/firms, and knowing which one best suits your needs is paramount. This blog post will cover TurboTax software in detail, thus helping you understand if it is meant for you.
Overview: What is TurboTax Software?
TurboTax is a complete tax software package that helps prepare American income tax returns. It was initially developed by Chipsoft in 1984 and then sold to Intuit – the leading software company, in 1993. The software has become a market leader in its segment and competes with the likes of TaxAct and others.
At its core, TurboTax tax software is a mobile-friendly tax preparation software designed to guide businesses when submitting their state and federal income tax returns. Using this software, users can track expenses in real-time, capture receipts via mobile devices, and identify business purchases.
Besides this, TurboTax software is available both online and CD/download versions, each of which varies in terms of pricing and accessibility.
Feature-wise Comparison of TurboTax Tax Software Online Versions
TurboTax software Online is available in four different versions, which are:
|Meant to file a simple tax return only
|Gives you everything you get with the free edition along with helping you maximize mortgage and property tax deductions
|Gives you every feature you get with the Deluxe edition along with the auto import of investment income
|Covers everything that comes with the Premier edition along with one-on-one from self-employment specialists
|Pay $0 to file your state and federal** taxes
|Covers 350+ tax deductions and credits
|Designed for various levels of investing – casual trading or handling a large portfolio
|Best suited for self-employed tax filers
|Easy to import information from W-2 income
|Tax guidance for homeowners
|Searches for 450+ tax deductions
|Searches for 500+ tax deductions and credits
|Easy to maximize tax credits for dependents
|Easy to claim deductions for charitable donations
|Best suited if you invest in stocks, bonds, or cryptocurrency
|Simplified Schedule C filing
|Personalized, tax preparation experience for free
|Priced at $59* Federal (state additional)
|Guidance on setting up rental property, depreciation, etc.
|Seamless Square payment import, and more
|Priced at $89* Federal (state additional)
|Priced at $119* Federal (state additional)
You can also benefit from getting expert advice while filing taxes using:
- TurboTax Live
- Full Service
TurboTax Live Pricing
|Priced at $79* (state additional)
|Priced at $119* (state additional)
|Priced at $169* (state additional)
|Priced at $199* (state additional)
|Priced at $199* (state additional)
|Priced at $249* (state additional)
|Priced at $359* (state additional)
|Priced at $389* (state additional)
Disclaimer: All the information related to software pricing has been obtained from the official TurboTax website.
- H&R Block
- Tax Slayer
- Liberty Tax
How Does TurboTax Software Work?
TurboTax tax software starts by asking easy-to-answer questions about the user’s life that can affect their tax implications. Based on your answers, it will search for appropriate deductions and credits and continue by asking more questions. As a whole, it has been designed to guide you as you do the taxes. You can start using the last year’s tax return information and the suitable TurboTax software version.
How to check which TurboTax software version is correct for me?
You can select the most suitable TurboTax version by looking at the features and pricing to make an informed decision.
How is TurboTax Online different from TurboTax CD/Download?
With TurboTax Online, you can benefit from the convenience of preparing and filing the tax return from anywhere and using any device. All your tax information will be stored on secured servers. On the other hand, TurboTax CD/Download needs to be downloaded or installed on a local device to allow you to work on your taxes.
Can I file state taxes with TurboTax software?
Yes, it is possible to file state tax returns with this advanced tax software (additional charges may apply).
How much does TurboTax software cost?
Refer to the feature comparison table above to check TurboTax pricing.