Turbotax Deluxe vs Premier

[Ready]

I'm finding the decision on which one I need to be quite confusing, in spite of Intuit's claim to have added back the missing forms into the Deluxe version.

When I enter my numbers into Taxcaster, it tells me I need Premier because I have investment income. But my only investment income is dividends and capital gains that get reported to me from Vanguard. I don't need Turbotax to calculate the gains or losses on individual shares or anything of that nature.

Can anyone think of a reason why I need Premier? I have no business income either, so no Schedule C.

On another note, when I run Taxcaster to get some estimates, I find that entering $12,000 in property taxes paid has no impact on my balance due, but entering the same $12,000 as mortgage interest significantly drops the balance due. Aren't property taxes considered a deduction just like interest income? Even if I up the property taxes paid to $100K it has no impact on the balance I owe. Any guess what's causing that?

Thanks in advance for any guidance!

 

[braumeister]

You don't need Premier. Even when I was using Schedule C, the Deluxe version of TT was just fine.

Sounds like a Taxcaster glitch on the tax issue.

 

[RE2Boys]

On another note, when I run Taxcaster to get some estimates, I find that entering $12,000 in property taxes paid has no impact on my balance due, but entering the same $12,000 as mortgage interest significantly drops the balance due. Aren't property taxes considered a deduction just like interest income? Even if I up the property taxes paid to $100K it has no impact on the balance I owe. Any guess what's causing that?

Thanks in advance for any guidance!

Sounds like you may be subject to the Alternative Minimum Tax (AMT) where you get no deduction for itemized taxes paid.

 

[Midpack]

Intuit has managed to make it as confusing as possible, on their website and their physical packaging!!!

If you have basic investment income etc. - I believe you need Deluxe CD/Download or Premier Online.

From their website:
The downloadable and CD versions of TurboTax Deluxe desktop software will again include:
· Schedule C for business.
· Schedule D for capital gains and losses.
· Schedule E for rental property.
· Schedule F for farms.
· 1040 long form

Also discussed here http://www.early-retirement.org/forums/f28/tt-and-vanguard-79726.html

 

[audreyh1]

Sounds like you may be subject to the Alternative Minimum Tax (AMT) where you get no deduction for itemized taxes paid.

That would also be my interpretation. Tax deductions like property tax, sales tax, and state income tax, are not deductible under AMT, which essentially wipes them out on your tax return if you owe enough AMT.

Other deductions such as mortgage interest, charitable deductions, etc., are allowed under both systems (ordinary and alternative minimum tax).

 

[Ready]

That would also be my interpretation. Tax deductions like property tax, sales tax, and state income tax, are not deductible under AMT, which essentially wipes them out on your tax return if you owe enough AMT.

Other deductions such as mortgage interest, charitable deductions, etc., are allowed under both systems (ordinary and alternative minimum tax).

It sounds plausible, but even if I up the property taxes to $150K, exceeding total income, I still get almost no benefit. And now all of my taxes due are AMT. I've never seen this before. Not being able to deduct property taxes would be a serious hit for me. I guess I'll have to download Turbotax and plug in the numbers to verify.

Thanks for the feedback on Deluxe vs Premier everyone. I was pretty sure I only needed Deluxe but just wanted to confirm before placing the order.

 

[jwkde]

But if I recall, the forms were available in Deluxe but you could not efile if you had a Sch C. It would prompt you to upgrade or you had to paper file.

 

[braumeister]

But if I recall, the forms were available in Deluxe but you could not efile if you had a Sch C. It would prompt you to upgrade or you had to paper file.

Maybe there has been a recent change, but I was still e-filing with Schedule C using Deluxe until three years ago. Haven't need C since then, but I'd be surprised if they took that out.

 

[growing_older]

using Deluxe until three years ago

That is the whole problem. They made a bunch of changes with which forms need which version last year. And then retracted and then maybe made more changes this year, or not. Any experience from 3 years ago is no longer relevant,.