Millions of individuals use the well-known tax preparation software TurboTax to file their taxes swiftly and easily. It might be challenging to choose which software version is best for your particular tax scenario, though, given the variety of versions that are available. We’ll assist you in selecting the best TurboTax product for your requirements in this article.
Think about your filing status first. You can use the TurboTax Free Edition if you are a single filer and have no dependents. This version is intended for straightforward tax returns, such as those that just include standard deductions and W-2 income. Upgrade to the Deluxe edition if you have dependents to get extra features like child tax benefits and educational expenditures.
You’ll need to utilize a different edition of TurboTax if you own your own business. For freelancers, independent contractors, and small business owners, there is a Self-Employed version. To help you maximize your tax return, it has features like spending tracking and deduction maximizing.
If you have created a Limited Liability Company (LLC), your choice of taxation will determine whether you must file taxes or not. Your LLC is taxed as a sole proprietorship or partnership if you have not filed an S-Corp election. This indicates that your personal tax return will include information about the LLC’s earnings and spending. You must submit a separate tax return for the LLC if you made the S-Corp election. Use the TurboTax Business edition in this situation.
You must submit a Form 1065 if you are a partner in a multi-member LLC or have a partnership. This form is part of the TurboTax Business edition and can assist you in accurately reporting your income, deductions, and credits. Additionally, you must submit a Form 1120 if you own a corporation. You can also use the TurboTax Business edition to assist you with this form.
In conclusion, your particular tax situation will determine which TurboTax edition is best for you. If your tax return is straightforward, the Free Edition might be sufficient. You might need to upgrade to a newer version if you have dependents or your own business. And to correctly file your tax return, you must use the TurboTax Business edition if you have a partnership, LLC, or corporation.
The primary distinction between TurboTax Deluxe and Premier is that whereas Premier is made for people with more complicated tax situations, like those who own investments or rental properties, Deluxe is intended for people with relatively straightforward tax situations. Additionally, Premier includes all the features of Deluxe as well as additional tips and tools for managing rental properties and investment income.