TurboTax Premier vs. Deluxe Versions: Features & Comparison
JA
Summary:
Both TurboTax Premier and TurboTax Deluxe offer features to help taxpayers get their documents in order before the tax-filing deadline. While Deluxe lets you know if you’re eligible for more than 350 tax deductions, Premier adds features to help you account for investment, crypto, and rental income. As a result, Premier costs a little more. Of the two, the best one for you will depend on your tax situation and needs.
Whether you’re a solopreneur, investor, or just trying to save money on filing taxes this year, it pays to invest in the right tax software for your needs. TurboTax, one of the most popular tax preparation software companies, offers various product tiers — Basic, Deluxe, Premier, and Self-Employed — to help taxpayers organize their tax forms and file their annual tax returns.
If you’re trying to decide between TurboTax Deluxe and TurboTax Premier, keep reading as we explore both versions, including their key features, to help you make an informed decision.
Compare Tax Preparation Services
Compare multiple vetted providers. Discover your best option.
TurboTax Deluxe features
TurboTax provides a free version for those with straightforward tax returns. But if your tax situation is more complicated and you need to itemize your deductions, you must upgrade to the deluxe edition. Here’s what the TurboTax Deluxe includes:
- Deduction finder. TurboTax Deluxe’s deduction finder will search 350+ tax deductions and credits to help you maximize your tax refund.
- Auto-importing. With the auto-importing feature, you can easily import mortgage and investment information from participating companies.
- Guidance for homeowners. This upgraded version will also help you deduct mortgage interest and property taxes, claim approved expenses for selling your home, and more.
- ItsDeductible app. The Deluxe version comes with an app called ItsDeductible, which helps you calculate the value of your charitable donations.
TurboTax Deluxe cost
TurboTax Deluxe’s cost will vary depending on whether you require expert help. These are the three pricing tiers within the TurboTax Deluxe version.
- Do-it-yourself. If you’re comfortable filing your own tax returns without professional help, TurboTax Deluxe will cost $54 for a federal return and $59 for each state return.
- Assisted. If you need a tax professional or a CPA to assist you while you file your taxes, TurboTax Deluxe will cost $124 for a federal return and $64 for each state return.
- Full-service. If you want a tax professional to do your taxes from start to finish, TurboTax Deluxe will cost $259 for a federal return and $64 for each state return.
TurboTax Premier features
TurboTax Premier provides everything that TurboTax Deluxe offers. However, this upgraded version also includes various additional features not provided by the Deluxe edition. Here are some of them:
- Accurate and robust investment tax reporting. TurboTax Premier helps you report the sales of investments such as stocks, bonds, and mutual funds. This edition also helps you calculate capital gains and losses.
- Employee stock plan support. If you bought or sold employee stock during the tax year, TurboTax Premier helps you determine your correct basis for stocks purchased and more.
- Covers Bitcoin and other crypto. If you sold crypto like Bitcoin during the tax year, TurboTax Premier could also help calculate your gains and losses to ensure they’re reported correctly on your tax return. Plus, TurboTax Premier can handle up to 20,000 crypto transactions, making it a great tax preparation software for frequent traders.
- Guidance on rental property expenses and deductions. If you have rental property income, TurboTax Premier makes life easier for you by helping you calculate and report expenses like rental depreciation.
TurboTax Premier cost
Like the Deluxe version, how much you’d pay for your TurboTax Premier edition will differ depending on how much extra help you need. Here’s what the pricing tiers look like for TurboTax Premier:
- Do-it-yourself. Costs $89 for a federal return and $59 for each state return.
- Assisted. Costs $179 for a federal return and $64 for each state return.
- Full-service. Costs $369 for a federal return and $64 for each state return.
Pro Tip
Be sure to start your tax return early. That way, you’ll have enough time to prepare and review your tax documents and double-check for errors. Plus, TurboTax often offers early bird pricing for early tax filers.
TurboTax Premier vs. Deluxe: Which is better?
So, what’s the verdict? Is the TurboTax Premier or Deluxe version better? Unfortunately, there’s no one-size-fits-all answer since the best option depends on your tax situation and needs.
Olivier Wagner, founder of the tax firm 1040 Abroad, says, “If you have multiple sources of income, including self-employment income or investment income, TurboTax Premier will provide more tailored guidance and help you maximize your deductions and credits.”
If you have multiple sources of income, including self-employment income or investment income, TurboTax Premier will provide more tailored guidance and help you maximize your deductions and credits. — Olivier WagnerClick to Tweet
On the other hand, if your primary goal is to maximize your tax deductions and credits, but you aren’t eligible for the TurboTax free edition, TurboTax Deluxe may be a better fit.
Ultimately the best option comes down to what features are most important to you. However, with either TurboTax version, you should be able to file your tax return quickly and accurately while maximizing your tax savings.
How to purchase TurboTax Premier or Deluxe
If you’re interested in purchasing TurboTax Premier or Deluxe to help you file your federal and state taxes this year, follow these steps:
- Head to TurboTax’s homepage. Once you’re on TurboTax’s homepage, click the “Get Started” button. Then, you’ll be directed to an interactive tool to help you choose the best TurboTax product based on your tax situation.
- Select the product you need. If you already know you want the Deluxe or the Premier edition, skip the questionnaire and select the “Start for Free” button under the Deluxe or Premier section. You’ll be asked to enter your payment information once you’re ready to file.
- Buy the desktop version. TurboTax recommends most customers use the online version of their products since it’s the most convenient. But if you want to work on your taxes even when you’re not connected to the internet, consider purchasing the desktop version from an authorized retailer, such as Best Buy or Amazon.
Pro Tip
If you want a better idea of how much your tax refund could be this year, use TurboTax’s calculator to get a refund estimate before purchasing their products.
Other tax preparation software
No matter which product you choose, be sure to perform your due diligence and thoroughly research the product features to make an informed decision about your taxes. If, after researching your options, you’re still unsure whether TurboTax is the program for you, don’t hesitate to explore other tax preparation software on the market.
FAQs
What’s the difference between Premier and Deluxe TurboTax?
The main difference between TurboTax Premier and TurboTax Deluxe is the price point and the features included. TurboTax Deluxe is best for those who want to maximize their deductions and make the most out of charitable donations.
On the other hand, TurboTax Premier provides every feature included in the Deluxe version — plus additional perks such as the convenience of auto-importing your crypto and stock activity as well as investment income. Though TurboTax Premier is pricer than TurboTax Deluxe, the additional features could be worth the investment.
Do I really need TurboTax Premier?
Whether you need TurboTax Premier will depend on your tax situation. TurboTax Premier is best for those who need to file investment taxes, including income from crypto, stocks, and rental property. So if you own stocks, bonds, mutual funds, ESPPs, or crypto and have rental income, upgrading to TurboTax Premier could be a smart choice during tax season.
Can I upgrade TurboTax Deluxe to Premier?
Yes, you can upgrade from TurboTax Deluxe to Premier if you need the extra features. To do so, sign in to TurboTax and open your tax return. Then, select “upgrade” from the menu and select the version (Premier) you’d like to upgrade to.
What happens if you don’t want TurboTax Premier?
If you don’t want or need TurboTax Premier, check out the other available TurboTax versions. The basic version is best for those who only need to file simple tax returns using IRS Form 1040 and only plan on claiming the earned income tax credit, child tax credit, and student loan interest deductions. The Deluxe version could be a good fit if you’re looking to maximize your tax deductions and credits. Lastly, the Self-Employed version is best for those with personal/business income and expenses.
Which TurboTax option is best?
Ultimately, choosing the best TurboTax version for you comes down to a combination of your tax situation and budget. Be sure to choose an option that meets all your needs while still fitting within your financial means. For example, if you have multiple rental properties and have the budget to invest $89 for the TurboTax Premier edition, upgrading to the Premier version from the Deluxe version can save you time and hassle as it’s more tailored to your tax situation.
Will TurboTax Deluxe or Premier help you if you get audited?
Dealing with an IRS audit can be stressful, which is why TurboTax offers free audit guidance in the unlikely event that you get audited. If you need additional support and protection, they also have a plan called TurboTax Audit Defense that offers full representation from experienced TurboTax professionals. With this plan, you’ll have an expert ready to assist with the audit process and defend your case if needed.
Key Takeaways
- TurboTax Deluxe features a Deduction Finder, an auto-importing feature, guidance for homeowners, and the ItsDeductible app. The program is also great for maximizing deductions and credits.
- TurboTax Premier provides additional features like accurate and robust investment tax reporting, employee stock plan support, and rental property expense calculation guidance.
- The cost of TurboTax Deluxe or Premier depends on the level of professional help you’ll need. There are three tiers: DIY, Assisted, and Full-Service.
- To protect you in case of an IRS audit, TurboTax offers free audit guidance as well as the option to purchase the Audit Defense plan that provides full representation from experienced tax professionals.
- Whether TurboTax Premier or TurboTax Deluxe is better for you depends on your tax situation and needs.
Share this post: