Filing your taxes can feel like a daunting task, especially when you're dealing with multiple state returns. It's easy to get lost in the jargon and wonder about limitations. If you're a TurboTax Desktop user, you've come to the right place! We're going to break down exactly how many state returns you can electronically file and walk you through the process, step by engaging step.
Your Guide to Multi-State E-Filing with TurboTax Desktop
Let's start by clarifying one of the most common questions: "How many state returns can I actually e-file with TurboTax Desktop?"
The short answer, as of the latest information, is that with your TurboTax Desktop software, you can typically prepare an unlimited number of federal and state returns. However, when it comes to electronic filing, there are some crucial distinctions and limits to be aware of.
Generally, TurboTax Desktop editions allow you to e-file:
Up to 5 federal tax returns for free. This is an IRS-imposed limit for personal tax preparation software.
Up to 3 state tax returns per federal return. This means if you e-file a federal return, you can also e-file up to three associated state returns. Each state e-file usually incurs an additional fee, though you often get one free state program download with your desktop purchase to prepare the state return.
So, while you can prepare a multitude of returns for different individuals or for yourself if you had complex multi-state income, the electronic filing limit is what you need to pay close attention to. If you go beyond the e-file limits, you'll need to print and mail the additional returns.
Step 1: Understanding Your Needs - Do You Really Need Multiple State E-Files?
Before we dive into the technicalities, let's figure out if multi-state e-filing is even necessary for your situation. Are you a freelancer working across state lines? Did you move during the tax year? Do you have rental properties in different states?
Consider your filing situation carefully. If you moved mid-year, you might be a part-year resident in two states. If you work in one state and live in another, you'll likely need to file in both.
Identify the states you need to file in. Make a list. This will help you determine if you'll hit any e-filing limits.
This initial assessment is crucial as it sets the stage for how you'll proceed with TurboTax Desktop.
Step 2: Purchasing and Installing TurboTax Desktop
This might seem obvious, but it's the foundation.
2.1: Choosing the Right Edition
Deluxe, Premier, or Home & Business? Each edition offers different features catering to various tax situations. For most multi-state filers, especially those with investments or self-employment, Premier or Home & Business might be more suitable. Review the features carefully before you buy.
Ensure it includes a state program. Most TurboTax Desktop versions come with one state program download included with the purchase. This allows you to prepare one state return. Additional state programs may need to be purchased separately, but remember, the e-file fee is per return, not per program.
2.2: Installation and Activation
Download or CD installation. If you purchased a digital download, follow the instructions to install it on your computer. If you have a CD, pop it in and follow the prompts.
Activate your product. You'll need an Internet connection and your license code to activate the software. This links your purchase to your Intuit account.
Step 3: Preparing Your Federal Tax Returns
This is where the core of your tax work happens.
3.1: Inputting All Income and Deductions
Gather all your tax documents. W-2s, 1099s, K-1s, mortgage interest statements, charitable contribution records – you know the drill.
Enter information meticulously. TurboTax guides you through a step-by-step interview process. Accuracy here is paramount to ensure your state returns are also correct.
3.2: Creating Multiple Federal Returns (If Applicable)
"File > New Tax Return." If you're preparing returns for multiple individuals (e.g., family members), you'll use this option to start a fresh federal return. Remember the 5 federal e-file limit per license.
Save each return with a unique name. This is critically important to avoid overwriting previous returns. For example, "JohnDoe_2024.tax" and "JaneDoe_2024.tax".
Step 4: Adding and Preparing Your State Returns
Now for the state-specific part!
4.1: Downloading State Programs
Once your federal return is substantially complete, TurboTax will prompt you to add a state return.
If you haven't already, you'll need to download the specific state program for each state you're filing in. Your initial purchase usually includes one free state program download. Subsequent state programs might require an additional purchase.
4.2: Navigating Multi-State Income Allocation
This is often the trickiest part for multi-state filers. TurboTax will guide you through questions about where your income was earned and for what periods.
Be precise with dates and amounts. If you moved, specify the exact dates you were a resident in each state. If you earned income in different states, allocate that income correctly. This is vital for avoiding double taxation and ensuring you get proper credits for taxes paid to other states.
Pay close attention to credits for taxes paid to other states. Most states offer a credit to prevent you from being taxed twice on the same income by different states. TurboTax is designed to calculate this, but it relies on your accurate input. Always work on non-resident state returns first, then your resident state return.
Step 5: Reviewing Your Returns for Accuracy
Before hitting that e-file button, review, review, review!
5.1: Running the Error Check
TurboTax has a built-in error check feature. Utilize it! This helps catch common mistakes and missing information.
Address any warnings or errors. Don't proceed until all critical issues are resolved.
5.2: Examining Forms and Worksheets
Go into "Forms Mode" to review the actual tax forms. This can help you spot inconsistencies or data that doesn't look right.
Cross-reference with your source documents. A quick check can save you headaches later.
Step 6: The E-Filing Process: Understanding the Limits and Fees
Here's where the electronic filing limits come into play.
6.1: Initiating the E-File
Once you're satisfied with your returns, navigate to the "File" section in TurboTax.
You'll be given the option to e-file your federal and state returns.
6.2: State E-File Fees
While your federal e-files (up to 5) are typically free with the desktop software, each state e-file usually incurs a separate fee. This fee can vary.
Be prepared for these additional costs. TurboTax will clearly show you the e-file fees before you submit.
6.3: Staying Within the E-File Limits
The 5 federal e-file limit is firm per license. If you've hit this, any subsequent federal returns must be printed and mailed.
The unofficial 3 state e-file limit per federal return is generally what you can expect. If you have a situation requiring more than 3 state e-files associated with a single federal return (which is rare but possible for highly mobile individuals or those with extensive multi-state income sources), you would likely need to print and mail the additional state returns.
If you exceed the e-file limit for federal or state returns, TurboTax Desktop will prompt you to print and mail. There's no workaround to magically increase the e-file limit within the same software license.
Step 7: Confirmation and Record Keeping
Your taxes aren't truly done until you have confirmation!
7.1: Federal and State Acceptance Emails
After e-filing, you'll receive emails from both the IRS and your state tax authority (usually within 24-48 hours) confirming acceptance or rejection of your return.
Do NOT assume your return was filed successfully until you receive these acceptance confirmations. If rejected, carefully review the reason and correct any errors before re-transmitting or printing and mailing.
7.2: Saving Your Records
Save PDF copies of your filed returns. This is essential for your records, for future tax preparation, and for any potential audits.
Print physical copies if you prefer, or as a backup.
Keep all your original tax documents for at least three years, or longer for certain situations.
Frequently Asked Questions (FAQs)
Here are 10 common "How to" questions related to TurboTax Desktop and state e-filing:
How to check if my state return was accepted? You will receive an email from TurboTax (and often directly from your state tax authority) confirming the acceptance or rejection of your state return, typically within 24-48 hours of e-filing.
How to avoid state e-file fees with TurboTax Desktop? To avoid state e-file fees, you can choose to print your state return(s) and mail them in instead of electronically filing them. The preparation of the state return is generally included or purchased separately, but the e-file is an additional charge.
How to file more than 5 federal returns with TurboTax Desktop? If you need to file more than 5 federal returns, you can prepare them using your TurboTax Desktop software, but any returns beyond the first five must be printed and mailed to the IRS.
How to add an additional state program to TurboTax Desktop? If your TurboTax Desktop edition only included one state download and you need to prepare another, you can usually purchase and download additional state programs directly through the TurboTax software interface or Intuit's website.
How to handle income earned in multiple states when filing with TurboTax Desktop? TurboTax Desktop has a guided interview process for multi-state income. You'll need to specify periods of residency and allocate income earned in each state. The software will then calculate appropriate credits for taxes paid to other states.
How to amend a state return after e-filing with TurboTax Desktop? If you need to amend a state return, you'll typically need to prepare the amended return within TurboTax Desktop. However, amended state returns generally cannot be e-filed and must be printed and mailed.
How to get a faster state tax refund? The fastest way to receive your state tax refund is to e-file your return and choose direct deposit. Refunds from e-filed returns are typically processed more quickly than paper-filed returns.
How to find my state's e-file acceptance status directly? Most state tax departments offer an online tool to check the status of your refund or return. You'll usually need your Social Security Number and the exact refund amount.
How to ensure accuracy when dealing with multiple state returns? Carefully review all income allocations, residency dates, and credits for taxes paid to other states. Run the error check feature repeatedly in TurboTax, and consider reviewing the generated forms in "Forms Mode" before filing.
How to contact TurboTax support for multi-state filing questions? You can access TurboTax support through their website or directly within the desktop software. Look for "Help" or "Support" options, which will lead you to their knowledge base, community forums, or contact methods for live assistance.