PSA: Who Really Needs TurboTax Premier (vs Deluxe)?

[Midpack]

I am decidedly NOT the expert, after buying Premier for the past several years when I didn't need to after all (and being a little miffed about it). I did it because Intuit's tables show "Additional Help for investment sales such as stocks, bonds, royalties, mutual funds and employee stock plans" on Premier and not Deluxe - and I have investment activity every year.

It was only when audreyh1 and others told me Deluxe handled investments too that I bought Deluxe this year and found it handled my investments fine - exactly as Premier does.

The only other obstacle I ran into was Deluxe doesn't ask about Roth Conversions when you have a TIRA distribution, Premier does. Deluxe didn't handle it correctly thru the Step-by-Step process so I thought I might have to upgrade to Premier as a result. But I found that by simply going to the TurboTax Form 1099-R and entering amount converted to Roth in lines B4 & B5 - that corrected everything. It correctly updated all my non-deductible basis info as well. So I didn't need Premier for that either!

I have finished my tax returns and there are no errors according to TT analysis/review. And I compared my 2019 with the new 2020 return, all is well.

Not surprising it appears the forms are exactly the same, and they will calculate/translate/update other affected forms correctly - all that may be different between Deluxe and Premier is what they show in the Step-by-Step front end? By going through the Step-by-Step first, and then delving directly into forms it appears it corrected the mistakes I had found. I suspect people here have been saying the same and I just didn't pick up on it...too soon old, too late smart.

 

[Lsbcal]

I too have used Deluxe for years.

 

[Jerry1]

I was able to inch into the waters. When TT made those changes, I had very little Schedule D activity so I figured what the heck, just buy Deluxe. Every year since, it handled everything just fine. It’s a shame that they market their products the way they do which I view as deceptive. I think they get away with it because the Premier product does offer more help (FWTW) and I think their one line Deluxe does not allow the Schedule D stuff, but I’m not sure about that.

 

[Lsbcal]

Deluxe does cover sales of stocks, mutual funds, bonds and other. Plus it covers capital loss carryover and a few other categories.

 

[audreyh1]

We always used Deluxe until Fidelity made Premier (but not Deluxe) free. When we couldn’t get Premier through Fidelity we switched right back to Deluxe no problem.

Our most complex issue is the foreign tax credit forms, sometimes combined with AMT. Deluxe handles all that.

 

[Lsbcal]

We always used Deluxe until Fidelity made Premier (but not Deluxe) free. When we couldn’t get Premier through Fidelity we switched right back to Deluxe no problem.

Our most complex issue is the foreign tax credit forms, sometimes combined with AMT. Deluxe handles all that.

Audrey, I have not done the foreign tax credit for many years but might have to for 2020. As I recall one got a detailed account breakdown of the taxes paid to various countries. I think the way it was handled was to just put in "various" in one of those boxes on the IRS form. Is that the way you handle such complexity now?

 

[Midpack]

Our most complex issue is the foreign tax credit forms, sometimes combined with AMT. Deluxe handles all that.

+1. I also have For Tax paid every year, and Deluxe handled my credit just fine for me again this year too. IME it's a little confusing in Premier and Deluxe.

My For Tax is from VTMGX and I just enter RIC (Regulated Investment Company) every year, no need to bother with finding/entering country breakdowns at least for a credit - I've never gone the deduction route. I am sure RIC won't work for every source of foreign tax paid though, but probably for most if not all mutual funds.

 

[W2R]

I just use Deluxe. My tax returns are pretty simple. Well, I have foreign tax credits like others have mentioned, but mine are almost trivial to deal with when using Deluxe.

I am going to be doing my taxes tonight or tomorrow. It won't take long, which of course doesn't mean that it's fun. Will be glad to put that behind me for another year.

 

[Out-to-Lunch]

The other thing to note is that if you buy Deluxe and find you needed Premier (or Home&Business), you can upgrade for the difference in the MSRP costs in the middle of filling out your return.

I did this once, and it went very smoothly. At the Premier level, I was able to reach a very competent CPA on the phone who talked my through the issue I was having.

 

[audreyh1]

Audrey, I have not done the foreign tax credit for many years but might have to for 2020. As I recall one got a detailed account breakdown of the taxes paid to various countries. I think the way it was handled was to just put in "various" in one of those boxes on the IRS form. Is that the way you handle such complexity now?

DH is the expert.

But he always has to do a spreadsheet with the mutual funds, %foreign holdings, the amount of income from those funds, and the results get plugged into one of the form 1116 worksheets somewhere.

Yes, I think various is used.

 

[ponyboy]

Just use credit karmas online tax software. Its completely free, includes dividends, capital gains, stock sales, etc etc.

 

[Sunset]

TaxCut is similar, in that Deluxe does what Premium does, except there is a little less interview hand holding front end.
I've used the Deluxe for years at only ~$22 with stock, rental, self employment, etc..

 

[JoeWras]

Back when I had NQ options and ESPP, I found that Premier was very helpful compared to Deluxe. You could still "do it by hand" on Deluxe, it was just a bit more painful.

I haven't started taxes yet. I'm going to be doing my taxes on both TT Deluxe and HR Block Deluxe. Blow that dough, I bought them both. I'll report back my thoughts later.

 

[W2R]

I just use Deluxe. My tax returns are pretty simple. Well, I have foreign tax credits like others have mentioned, but mine are almost trivial to deal with when using Deluxe.

I am going to be doing my taxes tonight or tomorrow. It won't take long, which of course doesn't mean that it's fun. Will be glad to put that behind me for another year.

Done! It took me a little less than 2 hours, plus some additional time messing around (downloading and printing out a few forms, printing the return, making a file for everything, etc). Then I spent a few minutes setting up automatic 2021 quarterly estimated payments using EFTPS , and doing the same using Louisiana's equivalent online payment scheduling site.

I got the closest ever in my IRS estimates! I only had to pay $63. woo-hoo!! No more taxes hanging over my head, until next year.

 

[Lsbcal]

Congrats W2R. Vanguard says our tax forms won't be ready until 2/15.
Generally it takes me a short time to do the taxes and I do them in early March.

 

[RunningBum]

Congrats W2R. Vanguard says our tax forms won't be ready until 2/15.

Mine were ready a few days ago. Anyone impatiently waiting on VG should check.

 

[Souschef]

I had to get Premier last year to handle sale of a home. When I tried it in Deluxe, it would not give me the credit.
P.S. I am back to Deluxe this year.

 

[pb4uski]

...I have finished my tax returns and there are no errors according to TT analysis/review. And I compared my 2019 with the new 2020 return, all is well. ...

You [-]shamed[/-] motivated me to do my taxes. Done, with no errors, including a part-year resident state return for 2020. Had a bit of an issue importing some info from Vanguard... I had to do both brokerage and mutual funds this year and it took a bit of time to figure that out. Also, I had to do some ciphering because Vermont needed to know how much of my LTCG were for over 3 years of hold... it turns out that they all were. I also had to look up what we received for economic stimulus payments and it turns out that we received all that we were entitled to.

Federal tax was $8 higher than my spreadsheet and state tax was $25 lower than my spreadsheet... so all is good.

I'll leave it be for a week or so and the review and electronically file.

 

[W2R]

You [-]shamed[/-] motivated me to do my taxes. Done, with no errors, including a part-year resident state return for 2020.

Congrats! It's great to be done with taxes.

Had a bit of an issue importing some info from Vanguard... I had to do both brokerage and mutual funds this year and it took a bit of time to figure that out. Also, I had to do some ciphering because Vermont needed to know how much of my LTCG were for over 3 years of hold... it turns out that they all were. I also had to look up what we received for economic stimulus payments and it turns out that we received all that we were entitled to.

I was getting kind of stressed while TT was figuring out if I got the right amount for my stimulus payments. But they said I did, and didn't try to take anything back. Whew

Federal tax was $8 higher than my spreadsheet and state tax was $25 lower than my spreadsheet... so all is good.

Excellent!

I'll leave it be for a week or so and the review and electronically file.

 

[donheff]

Congrats W2R. Vanguard says our tax forms won't be ready until 2/15.
Generally it takes me a short time to do the taxes and I do them in early March.

I got my Vanguard 1099s a week ago but I only have mutual funds. Maybe ETFs report later. It won't matter much. I already and finished my tax prep but IRS won't accept filings until the 12th. I way overpaid in 2020 both state and local because I just matched my 2019 taxes. DW's tax situation changed substantially since her law firm finally treated her as a retiree with 1099-R income instead of a K1 partner with self employment income. I used TT Premier but it seems clear from our simplified taxes and this thread that I can switch to Deluxe next year.

 

[Souschef]

Congrats to you who have done their taxes. I will not be getting my 1099's for another 2 weeks.

 

[GalaxyBoy]

On a side note, I've found that H&R Block Basic works just fine with Stock/Mutual Fund sales, Roth conversions, and foreign tax credits. HRB's web site also tries to make you think you need the more expensive "Deluxe" version if you are an investor.

 

[Midpack]

Congrats to you who have done their taxes. I will not be getting my 1099's for another 2 weeks.

Finished mine over the weekend, intend to file on day 1 - Feb 12, since I messed up an have refunds from Fed and State.

 

[Lsbcal]

Finished mine over the weekend, intend to file on day 1 - Feb 12, since I messed up an have refunds from Fed and State.

I try to have small refunds that I roll over to the next year's tax payments. So I don't have to be concerned with getting the refunds into my checking account. Seems the easiest way to deal with the whole thing.

At current interest rates there is no real issue with letting the government have a small excess payment.