Tax filing does not have to be stressful. In this day and age when everything can be done digitally, the most helpful tool is one click or tap away. In your search for tax preparation softwares, you may have encountered TurboTax and have been convinced to take it up on its offer because of all the positive reviews. However, you’re not sure if you should get Turbotax Deluxe VS Premier. It is arguably the most favorably reviewed program out there — but now that you have narrowed it down to TurboTax, there is another decision that must be made: which subscription should you take?
There are four main editions for the software, but today we are only comparing the two choices picked the most: Deluxe, and the less popular Premier. Even though subscriptions for other services often only differ in the number of benefits it can offer a customer, in the case of TurboTax, there is a clear subscriber in mind for each edition. Should you go for the Deluxe, or are you more suited for the Premier?
Let us get some things out of the way. All paid editions give you the following abilities: (1) Importing data from Quickbooks or Quicken, (2)importing the data from last year’s filed taxes and (3) preparing, printing and then digitally filing your tax returns.
Now that that’s out of the way, let’s get to the comparisons of Turbotax Deluxe VS Premier
(Because this option is what makes or break a choice for most people…)
Deluxe: The Deluxe is offered at $59.99 when you are accessing the service online, and the payment can be delayed until the first return is filed. The payment does not have to be through a credit card because TurboTax gives you the option to pay the costs of the service with the federal tax refund you will receive, although there may be additional fees. Meanwhile, the software costs $79.99 and comes with 1 state download and 5 federal e-files.
Premier: The Premier can be accessed online for $79.99 and can likewise be paid upon submission of the tax return. Payment does not have to be through a credit card as TurboTax gives you the option to pay the costs of the service with the federal tax refund you will receive, although there may be additional fees. The downloadable software costs $109.99, and like the Deluxe edition, entitles a subscriber to 1 state download and then 5 federal e-files.
Who is it for?
Deluxe: There is a reason TurboTax Deluxe is the more popular choice for the two. Many people simply want to file their returns and have as much deductions and credits as possible. If you own your home, have bills to mind, or even contribute to charity from time to time, Deluxe will suffice. The Deluxe is also what you’ll need to file the deductions on Schedule A.
Premier: If you have investments and rental properties, Premier will be better suited for your tax filing needs. This is true if you are involved in stocks, have bonds, mutual funds or have a trust in your name because Premier covers Schedule D. Collecting rent would require you a Schedule E, and that is also included in the Premier. Are you a recipient of the Schedule K-1? Look no further, Premier is the answer.
Deluxe: According to the TurboTax website, the Deluxe edition has everything the most basic version has, and then some.
● Guaranteeing maximum deductions
● Easy preparation and filing of tax returns
● A walkthrough of the filing
● Importing of older data
● A search of the deductions and credits amounting to 350+
● Maximizes deductions from properties, mortgage and even donations. The last factor could be computed using ItsDeductible™
● Deductions from dependents are also included as well as education credits from children who attended school
● Audit Riskmeter that will decrease the possibility of being audited
● You have the option to have your tax refunded and come in a check, as a deposit in your bank or a credit to your Turbo Prepaid Visa® Card
● Education on the true financial standing with Turbo
Premier: With a Premier edition, a subscriber is entitled to use all the features of the Free, Basic and Deluxe versions, and a few more that caters to the needs of those with investments and rental properties.
● Investments like bonds and stocks are accounted for
● Income and deductions from rental property are also covered, simplified method of reporting rental depreciation
● Income from investments are automatically imported into the system
● In the latest update, transactions from cryptocurrency are also considered
● Offers help on retirement tax
● An IRA tool that benefits you for the current financial year as well as when you retire
Deluxe: TurboTax Deluxe subscribers can seek personal help from the company’s roster of experts, and is available upon request. Customer service can be requested in Spanish.
Premier: The support from the Deluxe subscription can be expected on the Premier, but customers can also seek services for tech problems and tax filing through the phone. Certified Public Accountants will address subscribers’ inquiries.
Deluxe: The online version should work on most browsers; the most important point here is an Internet connection. For software downloads, TurboTax runs on Windows and Mac environments. It can be installed on any computer you have. Tax returns for other members of the family can be computed using the software you own.
Premier: There is no difference from the Deluxe edition.
There is no clear winner here, and that is because the two editions are marketed to customers with different, or added, needs. There are more features for the Premier edition, but if you have no investments like the ones that have been mentioned earlier or properties that are being rented out, then there really is very little reason to upgrade from the Deluxe. A bigger consideration might be going for either the online version or a downloadable software, but otherwise, go with what best fits your situation.