The TurboTax tax preparation software from Intuit is extremely user-friendly and works incredibly. They provide the user with an interview process and ask questions and, depending on the answers, assist them in the next section. TurboTax checks your information twice and completes your tax return. Depending on your needs, you can use Basic, Deluxe, Premier, or Home & Business versions. All the versions provide equal satisfaction. But you may have come across a question which TurboTax is right for me? This is a big challenge to figure out. But in the end, you will need a version that includes all the features for a successful and easy tax filing for you.
In this case, you need to upgrade your TurboTax, but it will be expensive. Hence, it is easy to find the best TurboTax version that meets your needs from the start and purchase it. If your needs are minimal and you can file a simple tax return, you can file taxes using the TurboTax free edition.
There are four types of TurboTax options available for you. Your option should be according to your lifestyle. Suppose you are a taxpayer with investments in cryptocurrency; you should know which TurboTax version would be suitable for you.
TurboTax Free Edition
This version of TurboTax is the right option for taxpayers whose income is largely from W-2s and savings in the bank. The free edition covers W-2 income, Child tax credits and Earned Income Tax Credit, standard deductions, and student loan interest deductions.
TurboTax Deluxe
This version combines all the features of the TurboTax free edition and some additional features. This option is good for homeowners because it offers them step-by-step guidance on how to convert their home investments into a major tax break. TurboTax Deluxe has a search of over 350 tax deductions and credits to find the qualifying tax breaks. When an unexpected form arrives late, TurboTax allows you to make changes to your 2021 tax return for up to three years and is accepted by the IRS. This version of TurboTax is available on the TurboTax site, and you don’t need to pay for the software until you file.
TurboTax Premier
It includes all the features of TurboTax Deluxe and is good for taxpayers with investment incomes like stocks, bonds, cryptocurrency, EPSSs, Robo investing, and income from rental properties. If you buy or sell Robinhood or Coinbase, a taxable event, the TurboTax Premier is the right version for you. It makes the transaction easy. Also, the software can import many transactions directly from brokers.
If you own a house and want to rent a spare room to your friend or relative, the TurboTax Premier version helps you report the income and locate common deductions that may save you thousands of dollars.
Similar to the TurboTax software, Premier gives customers the biggest tax break. TurboTax Premier searches for over 450 tax deductions and credits to search for qualifying tax breaks.
TurboTax Self-Employed
This TurboTax version includes all the features of the other TurboTax versions and some extra features for taxpayers who are self-employed. You should consider this version if you have a freelance job or a side hustle. TurboTax is ideal for 1099-NEC incomes, and it helps you finish all relevant self-employment tax forms and ensure that the IRS requires the schedule SE or self-employment tax.
This version of the TurboTax software looks through your transactions for industry-specific deductions, such as real estate, ride shares, delivery driving, and online retail and personal or professional services. Amazon has TurboTax self-employment software under the name TurboTax Home and Business. This version is the name of the online version.
What Do The TurboTax Versions Do?
All the TurboTax paid versions are able to:
Prepare, print, and e-file your return
Import the previous year’s data
Import from Quicken or QuickBooks
The Deluxe, Premier, and Home & Business versions of TurboTax include some features that maximize your deductions. For instance, ItsDeductible is the tool to calculate the value of all your deductions. From the points below, you can determine which TurboTax is right for me.
For Home Owners
If you need to customize your deductions on Schedule A, you should use the Deluxe edition. One thing to note is that the standard deduction for 2022 was $13,850 for individual filers and $27,700 for married joint filing.
For Business Owners
If you have a business, you have to declare your income on a schedule C and should use TurboTax self-employed. This is the dedicated version for business owners. Your business can be a formal corporation or less formal, like a rideshare driver or selling items on eBay. If you earn money from another source, you have to claim it on Schedule C.
For Rental Property
In case you own a rental property and collect rent, you must use TurboTax Premier as it includes schedule E.
For Investments (Stocks, Bonds, Or Mutual Funds) Sellers
If you used to sell investments such as stocks, bonds, or mutual bonds, you would have to file a schedule D or the TurboTax Premier. If you get a schedule K-1 in a partnership, you will need TurboTax Premier.