Feeling the pinch of tax season and wondering if you've chosen the right TurboTax product for your needs? Perhaps you started with TurboTax Deluxe, only to realize your tax situation is simpler than you initially thought, and you'd prefer to use the free edition. Don't worry, you're not alone in this! Many taxpayers find themselves in a similar boat. The good news is, depending on your progress, it's often possible to switch from TurboTax Deluxe to TurboTax Free.
This comprehensive guide will walk you through the process step-by-step, helping you understand when and how you can make the switch, and what to keep in mind to ensure a smooth transition. Let's dive in!
Understanding TurboTax Deluxe vs. TurboTax Free: Is the Free Edition Right for You?
Before we get into the "how-to," it's crucial to understand the key differences between TurboTax Deluxe and TurboTax Free. This will help you confirm if the Free Edition truly meets your filing requirements.
 |
| How To Change From Turbotax Deluxe To Turbotax Free |
What TurboTax Free Edition Covers:
Simple Form 1040 returns only. This is the most important distinction. If your tax situation requires only the basic Form 1040, you're likely eligible.
W-2 income. If your income primarily comes from a W-2, you're usually good to go.
Standard deduction. The Free Edition is ideal if you're taking the standard deduction.
Limited credits: It generally covers basic credits like the Earned Income Tax Credit (EITC), Child Tax Credit (CTC), and student loan interest deduction.
Basic interest and dividend income (1099-INT/1099-DIV/1099-OID), as long as it doesn't require filing a Schedule B.
What TurboTax Deluxe Covers (and Free Doesn't):
TurboTax Deluxe is designed for taxpayers with slightly more complex situations, often including:
Itemized deductions: If you plan to itemize deductions on Schedule A (e.g., mortgage interest, property taxes, charitable contributions, significant medical expenses), you'll need Deluxe or higher.
Unemployment income: Often reported on Form 1099-G.
Education credits: Beyond the student loan interest deduction.
Child and Dependent Care Credit.
And other more complex scenarios.
The bottom line: If, after reviewing your tax documents, you realize your situation doesn't involve any of the items covered exclusively by Deluxe (like itemized deductions or certain credits), then downgrading to TurboTax Free might be a smart move to save money.
Step-by-Step Guide to Changing from TurboTax Deluxe to TurboTax Free
Now that you're confident the Free Edition is for you, let's go through the steps. The method depends heavily on whether you've already paid for or filed your return.
QuickTip: Return to sections that felt unclear.
Step 1: Engage and Assess Your Current Status
Hey there, tax wizard! Are you ready to potentially save some cash this tax season? The first thing we need to figure out is your current status in TurboTax. Have you already paid for your TurboTax Deluxe product, or have you already filed your return? This is the most crucial question, as it dictates your path forward.
Scenario A: You haven't paid or filed yet. Fantastic! This is the easiest scenario for switching. You have two primary options: "Switch Products" or "Clear & Start Over."
Scenario B: You've already paid, but haven't filed. Still possible! You might need to contact TurboTax support, but there's a chance.
Scenario C: You've already filed your return. Unfortunately, it's too late for this tax year. Once filed, you cannot downgrade the product used for that specific return. However, this guide can still help you understand options for next year!
Let's assume you're in Scenario A or B, as those are the only ones where a change is possible.
Step 2: Accessing Your TurboTax Online Account
Navigate to the TurboTax Website: Open your web browser and go to the official TurboTax website (turbotax.intuit.com).
Sign In: Log in to your TurboTax account using your user ID and password. This will take you to your tax return dashboard.
Open Your Return: If you haven't already, click on the "Take me to my return" or similar button to open your in-progress tax return.
Step 3: Finding the "Switch Products" or "Clear & Start Over" Option
This is where the magic happens, but the exact location can vary slightly depending on the TurboTax version or year.
Option A: Using "Switch Products" (Recommended if available)
Look for a menu on the left side of your screen.
Scroll down and look for an option like "Tax Tools" or "My Account" or simply "Switch Products."
Click on it, and then look for "Switch Products" in the dropdown or expanded menu.
From there, you should see an option to "Downgrade." Follow the prompts to switch to TurboTax Free Edition.
Option B: Using "Clear & Start Over" (If "Switch Products" isn't readily available or if you prefer a fresh start)
While on your return dashboard, look for "Tax Tools" (usually on the left-hand menu).
Click on "Tax Tools," and a sub-menu should appear.
Select "Clear & Start Over."
Important Warning: This option will erase all the information you've entered for your current tax return. Make sure you are absolutely certain you want to do this before proceeding!
Confirm your decision when prompted. After your entries have been cleared, TurboTax will typically prompt you to select a product to begin your return again, at which point you can choose the Free Edition.
Step 4: Confirming Your Eligibility for TurboTax Free
Once you've initiated the switch or started over, TurboTax will guide you through a series of questions to determine your eligibility for the Free Edition.
Answer Honestly: Be completely honest about your income, deductions, and credits. If you enter information that requires a higher-priced version (like itemized deductions or certain investment income), TurboTax will automatically prompt you to upgrade again.
Review Covered Forms: As you progress, pay close attention to the forms and schedules TurboTax states are included. If you see forms pop up that you know are necessary for your taxes but aren't part of the Free Edition, you'll need to reconsider.
Step 5: Re-entering Your Information (If you used "Clear & Start Over")
Tip: Review key points when done.
If you chose the "Clear & Start Over" option, you'll need to re-enter all of your tax information from scratch.
Gather Your Documents: Have all your W-2s, 1099s, and any other relevant tax documents readily available.
Take Your Time: Go through each section carefully. The process will be similar to what you did before, but this time, you'll be starting within the Free Edition framework.
Leverage Auto-Import: TurboTax often allows you to auto-import W-2s and other forms from participating employers and financial institutions, which can save you significant time.
Step 6: Final Review and Filing
Once you've re-entered your information (or if you simply switched products and your data remained), you'll proceed to the final review.
Complete Check: Utilize TurboTax's "Complete Check" feature. This tool scans your return for potential errors and omissions, ensuring accuracy.
State Return: Remember that while federal filing might be free, state e-filing may incur a separate fee, even with the Free Edition. Check your state's requirements and any associated costs.
E-file or Print: Once you're confident everything is correct, you can proceed to e-file your federal and state returns.
Important Considerations and Tips
Act Before You Pay or File! This cannot be stressed enough. Once you've paid for a TurboTax product or, more importantly, filed your return, downgrading for that tax year is generally impossible.
Understand Free Edition Limitations: Don't try to force a complex tax situation into the Free Edition. If your income or deductions require forms beyond the basic Form 1040, attempting to use the Free Edition will only lead to headaches and potentially an incorrect return.
Check TurboTax Free Edition Eligibility Annually: The criteria for TurboTax Free Edition can sometimes change from one tax year to the next. Always verify your eligibility at the beginning of the tax season.
Consider IRS Free File Alliance: While Intuit (TurboTax's parent company) no longer participates in the IRS Free File program, other reputable tax software providers do. If you find TurboTax Free Edition doesn't meet your needs, but your AGI is within the IRS Free File limits (typically up to $79,000, though it can vary), explore other options on the IRS website.
Keep Records: Always keep copies of your tax returns and all supporting documents for at least three years (or longer, depending on your situation).
10 Related FAQ Questions
How to know if my tax situation is "simple" enough for TurboTax Free?
A simple tax situation for TurboTax Free Edition typically involves only W-2 income, taking the standard deduction, and claiming basic credits like the Child Tax Credit or Earned Income Tax Credit. If you have income from investments, self-employment, rental properties, or plan to itemize deductions, your situation is likely not considered simple for the Free Edition.
How to find the "Switch Products" option if I don't see it?
QuickTip: Stop and think when you learn something new.
Look for "Tax Tools" or "My Account" in the left-hand menu of your TurboTax online account. Clicking on these options often reveals a dropdown or sub-menu where "Switch Products" or "Clear & Start Over" can be found.
How to clear my return and start over in TurboTax?
While in your TurboTax online return, go to "Tax Tools" (usually on the left menu), then select "Clear & Start Over." Confirm that you want to erase all your entered data to begin anew.
How to avoid upgrading to TurboTax Deluxe in the first place?
When you first start your return, TurboTax asks a series of questions about your tax situation. Be very precise and avoid selecting options that indicate complexity (like owning rental property or having self-employment income) if they don't apply to you. This helps guide you to the correct product from the start.
How to get my money back if I accidentally paid for Deluxe but qualify for Free?
If you've paid but haven't filed, your best course of action is to contact TurboTax customer support directly. Explain your situation and politely request a refund or a downgrade to the Free Edition. Success may depend on their refund policy and how recently you paid.
How to transfer my data if I "Clear & Start Over"?
If you choose "Clear & Start Over," your previous data is erased. However, if you had linked your W-2 or other forms for automatic import, you can usually re-import them into your new, free return, saving you some data entry time.
QuickTip: Don’t just scroll — process what you see.
How to know if I'm eligible for IRS Free File instead of TurboTax Free Edition?
The IRS Free File program is a partnership between the IRS and various tax software companies (though not TurboTax directly anymore). Eligibility is primarily based on your Adjusted Gross Income (AGI), which is usually below a certain threshold (e.g., $79,000). You can check the IRS.gov website for a list of participating providers and their specific AGI requirements.
How to determine if I need to itemize deductions?
You should consider itemizing if your total eligible itemized deductions (like mortgage interest, state and local taxes, medical expenses over a certain AGI percentage, and charitable contributions) exceed the standard deduction amount for your filing status. TurboTax Deluxe helps you calculate this.
How to switch to a different TurboTax product after I've filed?
You cannot switch products for a return that has already been filed. The edition you filed with is the one tied to that tax year's return. If you discover an error after filing, you may need to file an amended return, which is a separate process and often requires a paid product.
How to ensure I get my maximum refund with TurboTax Free?
Even with the Free Edition, TurboTax is designed to help you get your maximum refund by accurately applying the standard deduction and any eligible simple credits. Ensure all your income sources (like W-2s) are entered correctly, and answer all questions thoroughly to claim everything you're entitled to.
 |
