Turbotax download version for entering k-1

Glenn Stok has managed his own business over 35 years and has expertise with filing his corporate and personal taxes using TurboTax.

This article is updated for taxes due April 15th,

Are you comfortable doing your own taxes? I've used TurboTax for over 20 years, both for my business and my personal taxes. I've come to know all their products, so I can guide you with what's required for your situation.

One of the most important things I've discovered when I first started using TurboTax is that I became much more aware of my finances and where my money was going.

For many years I had an accountant do my taxes, and I was left in the dark about things I could have been improving financially. It wasn't until my accountant retired, and I started using TurboTax, that I discovered crucial details to improve with my financial situation.

What's New for Tax Year (due April )?

Consolidated Forms

The IRS eliminated Forms EZ and A, and the new Form consolidates the three types of returns into a single form.

Itemized deductions will be included on Schedule A, as always, for taxpayers who include deductions such as home mortgage interest and property taxes.

Six new schedules were introduced recently for less common items. TurboTax determines if you need these schedules and easily guides you through them.

Cryptocurrency Transactions

Last year if you had any Bitcoin or other cryptocurrency transactions, you had to report that on Schedule 1. Many people never use that schedule unless they have income other than W-2, such as business, rental, and alimony. So the IRS is making it more obvious now.

The first question on Form for your taxes asks if you acquired a financial interest in any virtual currency. Maybe in the future, you may have to report all transactions.

Many banks, and even PayPal, already offer the ability to use cryptocurrency for purchases or trade it in your account. I would caution you to be careful since reporting might become a nightmare.

Imagine if we need to report gains and losses based on every transaction. We have no idea how the IRS intends to handle this in the future. If you do any cryptocurrency transactions, it might be a good idea to record all your activity.

TurboTax Doesn't Miss a Thing

I found that TurboTax guides me, asking for the required information so that I end up filing my taxes with the correct information in a way that's legally most beneficial to me.

Good accounting software keeps track of everything and carries the necessary data forward from one year to the next. TurboTax does this, so you don't need to keep track of your prior year's information. And while you're preparing your taxes, it will remind you if you forgot anything.

Real Estate: It will ask you if you have a home, so it knows to take deductions on your real estate property tax and mortgage interest. It gets easier as time goes on because it will remember to ask for your property data each year.

Inheritance: It will ask if someone died, so it files inheritance income properly. It knows when this is tax-free and will give you the most advantage.

Deductions: It even gives you the proper deductions for the sales tax you spent throughout the year. There&#x;s a quick, easy way to calculate this even if you didn&#x;t keep records. TurboTax helps with that.

Investing: If you invest in the stock market, it keeps track of your capital gains and losses. And it carries it all forward year to year, so you never miss anything.

Health Care Compliance: Ever since the tax year, all the forms for the Affordable Care Act have been included to help you properly file your Obamacare entitlements.

Free eFile for Faster Refunds

All software versions include free eFile so you get your refund faster. And no worry about getting lost in the mail. You can eFile up to five returns. That gives you the ability to do the taxes for your other family members or close friends too.

Online TurboTax Vs. Software Versions

TurboTax has an online version on their site that you can use without installing software on your computer. However, as mentioned above, all the software versions that you can purchase via download allow you to eFile up to five returns. The online version only lets you do one return.

In addition, all the software versions let you do as many taxes as you want on your own computer, five of which can be eFiled.

All the versions create all the IRS forms for you, and they print on your computer's printer so you can save a copy for yourself. You can also save it as a PDF file on your hard drive.

Other Benefits of TurboTax

Besides correctly filling out your tax forms, TurboTax provides many additional benefits, such as these:

• It keeps track of all your finances from one year to the next.
• It guides you with self-employed and business-related travel expenses, as well as home office deductions.
• All your information is carried forward year to year. That improves the accuracy of each year's filing. It even reminds you about things that occurred in prior years that you might have forgotten to include. My accountant never told me when I left something out.
• The Premier (and higher) TurboTax version includes a free "Ask the Tax Expert" service.
• You can increase your refund by taking all or part of it on an diseinuak4web.net gift card (up to $1,), and TurboTax will add 5% to 10% to the total.
• TurboTax properly handles the filing of data for the Affordable Care Act.
  
• Free TurboTax support via phone for U.S. customers.

TurboTax Has the Right Version for Each Situation

There are several different versions, each for a specific situation. Each version is available online as well as software that you install on your own computer.

The software version can be bought on CD or instantly downloaded from Amazon. I personally like having it installed on my own computer rather than keeping my data on Intuit&#x;s online server. (Intuit is the maker of TurboTax).

The online versions cost less, but if you live in a state that also has local taxes, then you have to pay more to prepare the state tax return. That ends up costing more than the software version.

Most of the software versions include the state return for your home state. Only the basic version and the business version do not include the state return, but you can add it with an additional purchase if needed.

Compare TurboTax For Individuals

Below is a complete review of the various versions to help you choose the right one. You can also download right now and start working on your taxes when you buy from Amazon.

I used to buy directly from Intuit, the makers of TurboTax, but I discovered that Amazon has the lowest prices. I compare every year, and I always end up ordering from Amazon.

I even get offers from my bank every year to buy TurboTax at a discount, but that is a discount off the retail price and Amazon ends up having the lowest prices anyway.

TurboTax Basic

TurboTax Purchase Options

When you buy from Amazon, you'll see the following options for each version:

• Immediate download for a PC.
• Immediate download for a Mac.
• Disc mailed to you that works on a PC or a Mac.

I prefer to download it since there is no need to wait for delivery. Besides, software on CD is rare these days. Most new computers no longer have CD drives.

If you ever need to reinstall it, the purchase is saved in your Amazon account for free download at a later date.

TurboTax Deluxe

TurboTax Premier

Find Out What Deductions You Can Claim on Your Taxes

TurboTax will help you discover all the things you can claim as deductions on your taxes. Based on your overall tax reporting, it will suggest other claims you may have missed. It will also guide you through all the existing possibilities that help reduce your taxes even further.

By the way, if you have a lot of deductions for a self-employed business, and not much income, then TurboTax will warn you that your chance of an audit is high. It will give you the option of improving your situation by not taking all the deductions that could trigger an audit.

The following table shows some deductions that can reduce taxes. These are all covered with precise guidance according to IRS regulations as TurboTax walks you through your return.

Sample Deductions

• Personal Exemptions
• Real estate property taxes
• Alimony (some cases)
• Student Loan Interest
• Education-Related Expenses
• Self-Employment Expenses
• Social Security (FICA) Taxes
• Medical claims
• Medicare Premiums
• Health Insurance
• Charitable Deductions
• Energy Efficiency Purchases
• Renewable Energy Credits
• Automobile Tax Credits (some cases)
• Child Care

Compare TurboTax for Business

If you have your own business and are self-employed as a sole proprietor or you are incorporated, then you need one of the business versions I discuss below.

If you have to create W-2 and forms, or you want help with finding business deductions, then you need to use TurboTax Home & Business for a small business or Business Federal for corporations and LLCs.

Home & Business

Business Federal

Schedule C for Self-Employed and Small Businesses

If you are self employed with a sole proprietorship, you need to include Schedule C and Schedule SE with your form. "TurboTax Premier" handles those forms. However, if you hire anyone in addition to yourself, then you will need to use the "Home & Business version."

You can file Schedule C for business income and expenses with all the CD and Downloaded TurboTax products (Basic, Deluxe, Premier, and Home & Business). However, if you use the online version, only Home & Business will create Schedule C.

Filing for a Non-Calendar Fiscal Year

This section only applies to you if you have a corporation, and you file for a Fiscal Year that is not January through December.

If your fiscal year is not the same as a calendar year, then you may get to buy the Business TurboTax from Amazon at a huge reduced price since you can wait to purchase it later when you need to file.

My case is a good example:

Since I incorporated in June and my fiscal year went from June 1st to May 31st. Since my fiscal year ends in May, my deadline for filing by business tax report is September rather than April. Therefore, I always wait until August to buy TurboTax for Business.

Since it's considered obsolete by then for that year, I get the advantage of a considerable discount. If you have a company that files under a different fiscal year, you may also save on the purchase of Business TurboTax. Take advantage of that if you can.

People Also Ask

• Can I do eFiles for other family members? How many eFiles can I do?

You can do up to five eFiles when you buy the software version. However, the online version only lets you do one return.

• Can I share TurboTax with a friend or family member? How many tax returns can I file with one TurboTax purchase?

The software version is unlimited as long as you do the returns on a single computer where you installed your copy of TurboTax. However, keep in mind that you can only eFile up to five returns. Beyond that, you need to print the forms for your family members or friends to mail in.

• Can I use TurboTax for all family members?

Yes, the same as the last question. You can eFile, as well, for up to five individual family member&#x;s returns.

• Can I delete my information from TurboTax when I'm done?

Yes, but you really wouldn't want to, because TurboTax makes it easier to do your taxes each of the following years by carrying forward all pertinent information.

I personally don't like the online version for that reason, since your data is saved on their servers. I am sure your information is safe, but I feel more comfortable having it on my own computer. Therefore, I always use the downloaded software version rather than the online version on their site.

Using it on my own computer gives me full control for safekeeping since none of my data resides on their server. Just remember to back up your files if you do the same thing. You can also password protect the data file.

• Can I use TurboTax to file for a deceased parent?

Yes, I had done this for my aunt's estate. It works very well. If you are the executor, TurboTax will guide you with properly filing the final return for a deceased parent or other relatives.

• Can I use TurboTax for business with a fiscal year?

Yes. I do that. See my complete explanation in the section above: "Filing for a Non-Calendar Fiscal Year"

• Can I do my personal taxes with TurboTax Business?

"TurboTax Business Federal" is for Corporations and not for personal However, "TurboTax Home & Business" is the one you'll want to use if you own a small business with no other employees.

• Can I download a different TurboTax State for other family members?

You can purchase and download as many states as you need. The first you download is included free. However, TurboTax Basic and TurboTax Business do not include the state return for free and have to be purchased.

• Can I use TurboTax for more than one year?

No. Tax laws change every year, and TurboTax continually keeps up with the changes. That's why you need to purchase a new one every year. Your personal information and tax data are automatically carried forward, so doing your taxes becomes easier with each additional year.

• Will TurboTax suggest if it&#x;s better to itemize or take the standard deduction?

Yes, it will walk you through the details and help decide which way to go. All versions will automatically figure the result with the standard deduction and with itemizing. Then it will recommend the best method. You can still override that and choose either method, but why would you?

• I have not used TurboTax before, so do I need the earlier versions to produce the reference files for prior years?

You don&#x;t need earlier versions. You can start anytime simply by beginning with the present year. The first time you use TurboTax it will ask you a lot of questions about your finances and history that you should try to answer.

For example, if you had been putting money into an IRA, it would be helpful to know the details of your individual donations. If you own a home, it may ask you when you bought it.

When you continue to use TurboTax in future years, it will be a lot easier because it will carry forward all the data.

• Which TurboTax version covers the sale of a home?

TurboTax Premier as well as Home & Business include the entry of all the details required for the sale of your home.

• I had a loss due to flooding. Does TurboTax help with the appropriate forms to file for a casualty loss?

You need to use IRS Form to report a casualty deduction for property losses. You can do that with TurboTax Premier or higher. If you were using "TurboTax Basic" last year and you upgrade to "Premier," it will read your present TurboTax data file so you won&#x;t have to start from scratch.

• I sold stock, what version do I need?

The Premier version of TurboTax handles stock trades. It even can download the information of your stock sales from your broker if you choose to let it have access to your account. You may need to enable that option with your broker account and then disable it again after the download for safety.

Of course, you can always enter the data yourself. TurboTax makes that easy too. It asks you for everything it needs for proper reporting: Date of purchase, date of sale, cost of the investment, and amount received on the sale. It then figures if it&#x;s a long term or short term investment to calculate the correct tax due.

• I have a K-1 from an S corporation, which version do I need?

You need the Premier version to walk you through the entry of the many fields on a K I've done it, and the Premier version made it easy. I just needed to enter the values from each field.

Final Thoughts

Ever since I began using TurboTax over 20 years ago, I found that I had more control of my finances.

Back in the days when I used an accountant, I had to remind her of the information she missed. It wasn't her fault, since I missed giving her some information. But TurboTax keeps track. It carries things forward to the following year, such as stock losses that can be deducted in future years. And it alerts me if I missed anything.

I also like how TurboTax suggests things that save me money, such as what can be added to my IRA, etc. All this makes me more aware of my financial situation.

_{Main image courtesy Pixabay with TurboTax logo added under "fair use" permission.}

This article is accurate and true to the best of the author&#x;s knowledge. Content is for informational or entertainment purposes only and does not substitute for personal counsel or professional advice in business, financial, legal, or technical matters.

Questions & Answers

Question: Does the Canadian Version of TurboTax Premier log into my brokerage account and capture all my stock purchases and sales for CRA Schedule 3 just as the US version does for Form data?

Answer: The Canadian version of the Premier Turbotax has a feature called Auto-fill My Return . This does not download stock transactions from your broker, but it downloads this information from your CRA Account portal.

Your stockbroker sends all the T slips with trading information to the CRA and this is kept in your CRA My Account. TurboTax can import all that data from there.

Besides importing automatically, TurboTax provides interview questions to help you complete CRA Schedule 3 (Capital Gains or Losses) and Schedule 4 (Statement of Investment Income).

Values from buying and selling securities are reported on the T slip (Statement of Securities). You can manually enter these stock transactions if you don&#x;t import from your CRA account. You can enter the data from the T slips or fill in the Schedule 3 form directly by going to the forms entry option on TurboTax.

Question: Since all versions of TurboTax can import financial institution data, and brokerage transactions are reported on B, why would I need the Premier version for my mutual fund investments?

Answer: Forms are used to report all types of financial transactions, such as dividends, interest, and miscellaneous. All versions of TurboTax can download all of these. However, if you have investments such as stocks or bonds, reported on B, then you need the Premier version to complete the appropriate forms and report the transactions.

Question: I need the Premier Turbotax because of securities and I am a mortgage holder. However, do I need Home & Business because my wife is a writer and has SE business deductions but virtually no income from writing?

Answer: For you, the Premier is the correct choice. Home and Business is useful for a self-employed person, such as your wife. But it may be more than she needs. I&#x;ll explain why:

I also am a writer, and I use the Premier version to include my business income and expenses. It&#x;s sufficient for self-employed returns as long as you don&#x;t have employees and you&#x;re not an LLC. If that&#x;s your wife&#x;s situation, then you can save money and buy just one TurboTax, the Premier. You can file up to five returns and eFile too. So that more than covers both you and your wife.

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