When it comes to TurboTax, whether you choose to use the desktop software or opt for the online version, you will typically need to purchase a new version every year. This is because TurboTax releases a new edition each year that is updated with the latest tax laws, forms, and calculations.
If you prefer using the desktop software, you will need to purchase the latest version of TurboTax each year. The software is usually available for purchase both online and in retail stores. It is important to note that each year’s version is specifically designed for that tax year, so using an older version may not accurately reflect the current tax laws and could potentially lead to errors or missed deductions.
On the other hand, if you choose to use the online version of TurboTax, you will also need to purchase a new version each year. However, there is a free option available for filing federal returns early in the tax year. This means that if you file your federal taxes early, you may be able to use TurboTax online for free. However, if you wait too long and file later in the tax year, there may be a state filing charge or additional fees for certain features and forms.
It’s worth noting that TurboTax continuously updates its software throughout the year to ensure accuracy and stay up to date with any changes in tax laws. Therefore, purchasing a new version each year is important to ensure that you have access to the most recent updates and features.
In my personal experience, I have found TurboTax to be a reliable and user-friendly tax preparation software. While the need to purchase a new version each year may seem like an additional cost, it is important to consider the convenience and accuracy that TurboTax provides. The software guides you through the tax preparation process, asking relevant questions and offering step-by-step instructions to help ensure that you maximize your deductions and file your taxes correctly.
Whether you choose the desktop software or online version of TurboTax, purchasing a new version each year is typically necessary. This is due to the annual updates that TurboTax releases to reflect the current tax laws and provide the most accurate calculations. While there may be a free option available for filing federal taxes early in the tax year, fees may apply for state filing or additional features if you wait too long. Ultimately, the choice to invest in TurboTax each year is a personal decision based on your tax situation and preference for convenience and accuracy.