TurboTax is a cheaper alternative to hiring an accountant. The deluxe version is enough for most home needs. In theory, TurboTax is aware of the latest deductions and will ask you the right questions in order to take advantage of tax breaks like what an actual accountant may do.
While doing a TurboTax feature comparison, you have to be aware of the different versions available. There is a free basic version, Premier, Deluxe, Home and Business, and Business versions. You have to know the difference between the TurboTax versions before you decide which is the right one for your needs. You may also have to decide if you want to use a desktop version or an online version.
TurboTax Deluxe edition is what most users need if they don’t qualify for the basic free edition. This version guides the user in filing taxes and it offers enough help as you answer the questions to provide the deductions or life changes in your life. It is good if you own a home, you donate money to charity, you pay significant medical and education expenses, you pay for childcare expense, or you qualify for many deductions.
The desktop versions of TurboTax offer free federal e-file, but state e-file is typically an extra charge. You could start out using the free basic version; however, the best thing is that it can be upgraded easily to get a better version. When you upgrade to a better version, all the data that you had entered already will be kept in the new version. However, the free edition does not offer the same help as paid versions have.
You can also get a great deal on TurboTax when you buy the online version. The version is cheaper and also quicker to do the set up because you do not have to download the software. When you enter the data, it is going to be stored on the servers of Intuit, the maker of TurboTax, but not on your own computer. However, people may be concerned about the security of the data they provide online since wherever information is stored, it can be an easy target for the hackers.
With the desktop version of TurboTax, you only download software and you can install it on your own computer. It is easy to install, but there are users who may not be that comfortable when it comes to installing the software. The software also requires a new and fast computer to handle the minimum requirements.