Do you find yourself navigating the complexities of tax season, wondering about the limits of your chosen tax software? Specifically, how many returns does TurboTax allow you to prepare and e-file? This is a common and crucial question, especially if you're managing taxes for your family, friends, or even a small side business. Let's dive deep into this topic, providing a comprehensive, step-by-step guide to understanding TurboTax's return limitations and how to best manage your filing needs.
Step 1: Engage Your Tax-Filing Brain! Are You a Solo Flier or a Family Tax Captain?
Before we get into the nitty-gritty, take a moment to consider your specific tax situation. Are you filing for just yourself? Or are you the designated tax guru for your entire family, juggling multiple W-2s, 1099s, and perhaps even some self-employment income? Your answer to this question will largely determine which TurboTax product is right for you and how many returns you can actually process.
Are you an individual with a straightforward tax situation?
Do you manage the taxes for your spouse and children?
Are you a small business owner who also files personal taxes?
Do you help elderly parents or other relatives with their returns?
Understanding your role in the tax-filing landscape is the very first, and most important, step.
Step 2: Distinguishing Between TurboTax Online and TurboTax Desktop (CD/Download)
This is where the biggest difference in TurboTax's return allowance lies. TurboTax offers two primary ways to file: their online versions (accessed through a web browser) and their desktop software (purchased as a CD or digital download and installed on your computer). The number of returns you can file varies significantly between these two platforms.
Sub-heading: TurboTax Online: One Account, One Return (Mostly!)
The Core Rule: For TurboTax Online, the general rule of thumb is one federal tax return per account, per tax year. This means if you create an account on the TurboTax website to file your taxes, that account is designed for your individual or joint return (if you're filing jointly with a spouse).
Why the Limitation? The online platform is structured to guide a single taxpayer (or a married couple filing jointly) through their specific tax situation. Each online account is essentially a dedicated workspace for one return.
Workarounds (with caveats): While you can use the same email address for up to five separate TurboTax Online accounts, each of these accounts will require a unique User ID. More importantly, each separate online account will incur its own fee (unless you qualify for a free edition for each individual return). So, while technically possible to file multiple returns this way, it can become quite expensive if you have more complex returns that don't qualify for the free version.
Consider this scenario: If you need to file for yourself, your adult child, and your parents, you would need three separate TurboTax Online accounts, each with its own User ID and likely its own payment.
Sub-heading: TurboTax Desktop (CD/Download): The Multiple Return Powerhouse
The Champion of Multiple Returns: This is where TurboTax Desktop (the CD or downloaded software you install on your computer) truly shines for those managing multiple returns. With a single purchase of the desktop software, you can prepare an unlimited number of federal tax returns.
The E-File Limit: An IRS Rule, Not a TurboTax Rule: While you can prepare unlimited returns, there's a crucial limit when it comes to e-filing. The IRS, not TurboTax, imposes a limit of five federal e-files per personal tax preparation software product (which includes TurboTax Desktop). This means you can electronically submit up to five federal tax returns using the same installed software.
Important Note: This limit is associated with the software and potentially your IP address/email used for the e-filing transmissions. Trying to purchase another copy of the desktop software and installing it on the same computer will not circumvent this 5-e-file limit. The limit is tied to the personal tax preparation software product itself, regardless of how many copies you buy or install on the same machine.
Beyond Five E-Files: Print and Mail is Your Friend: If you need to file more than five federal returns using the desktop software, you can still prepare them. However, any returns beyond the initial five that you e-file will need to be printed and mailed to the IRS. This is a perfectly valid and common way to file, just ensure you have adequate time for mail delivery and processing.
State Returns with Desktop: When you purchase TurboTax Desktop, it typically includes the software for one state tax return. You can prepare as many state returns for that specific state as the federal returns you prepare. E-filing state returns usually incurs an additional fee per state, but you can always choose to print and mail state returns to avoid this fee. If you need to file for individuals in different states, you would need to purchase additional state software modules for each different state.
Step 3: Understanding the Nuances of "Returns"
It's important to clarify what constitutes a "return" in this context.
Individual/Joint Federal Returns: Each individual federal income tax return (Form 1040) counts as one return. If you and your spouse file jointly, that still counts as one federal return.
Dependent Returns: If you're preparing a return for a dependent (e.g., your child who has some income), that counts as a separate federal return.
Business Returns (Separate Products): TurboTax also offers separate products for business taxes, such as TurboTax Business (for S-Corps, C-Corps, Partnerships, and multi-member LLCs filing Form 1120, 1120-S, or 1065). These are entirely separate software packages and their filing limits are distinct from the personal income tax products. The limitations discussed above primarily refer to individual (Form 1040) federal tax returns.
Step 4: Choosing the Right TurboTax Product for Your Needs
Now that you understand the core differences, let's look at how to select the best option.
For Single Filers or Married Filing Jointly (One Return):
TurboTax Online is often the most convenient and cost-effective solution. You can access it from anywhere with an internet connection.
If your situation is very simple, you might qualify for TurboTax Free Edition online.
For Families or Individuals Managing Multiple Returns (e.g., parents, adult children, personal and simple side hustle):
The TurboTax Desktop (CD/Download) version is almost always the most economical and practical choice. You get the ability to prepare unlimited federal returns and e-file up to five. The investment in the software often pays off if you're filing more than one or two returns.
For Businesses (beyond a simple Schedule C for self-employment):
You will need a dedicated TurboTax Business product. These are separate purchases and are designed to handle the complexities of different business structures.
Step 5: Practical Tips for Managing Multiple Returns with TurboTax Desktop
If you opt for the desktop version, here are some invaluable tips to streamline your process:
Create Separate Files: When you start a new return in the desktop software, always choose "File" > "New Return." Do not overwrite an existing return. Save each return with a clear, descriptive filename (e.g., "JohnDoe_2024_Federal.tax2024").
Organize Your Files: Create a dedicated folder on your computer for all your tax files for the current year. Within that, you can have subfolders for each individual's return. This will save you a lot of headache later!
Print and Save PDFs: Even if you e-file, it's highly recommended to print a physical copy of each return for your records and also save a PDF version to your computer. This provides a crucial backup and makes it easy to access your returns in the future for loans, audits, or amending.
Keep Track of E-Files: Since you have a limit of five federal e-files, keep a running tally of how many you've used. This will help you know when you need to switch to printing and mailing.
Consider System Requirements: Ensure your computer meets the minimum system requirements for the TurboTax Desktop software to avoid any technical glitches.
Step 6: What if You Exceed the E-File Limit for Federal Returns?
It's straightforward: once you've used your five federal e-files with the desktop software, any additional federal returns you prepare will need to be printed and mailed to the IRS.
Prepare the Return: Complete the tax return as usual in your TurboTax Desktop software.
Select Print & Mail: When you get to the filing step, choose the option to print and mail your return.
Sign and Date: Crucially, sign and date your printed tax return(s) in the designated areas. If it's a joint return, both spouses must sign.
Attach Supporting Documents: Attach any required forms (like W-2s, 1099s, etc.) as instructed.
Mail it: Send your return to the correct IRS address. This address can be found in the TurboTax instructions or on the IRS website. Always use certified mail with a return receipt for important tax documents, as it provides proof of mailing and delivery.
Step 7: What if You Need to File for More Than One State with TurboTax Desktop?
As mentioned, your initial TurboTax Desktop purchase typically includes one state program.
Identify Additional State Needs: Determine if you need to file state returns for individuals residing in different states.
Purchase Additional State Programs: If so, you'll need to purchase additional state programs within TurboTax. These are usually available as add-ons to your desktop software.
Install and Prepare: Install the new state program(s) and proceed to prepare the respective state returns within the software.
E-File or Print & Mail State Returns: You can choose to e-file these state returns (for an additional fee per state) or print and mail them to the relevant state tax authority.
10 Related FAQ Questions (Starting with 'How to')
Here are some quick answers to common questions related to TurboTax and filing multiple returns:
How to determine which TurboTax version is right for me if I have multiple returns?
If you need to prepare and potentially e-file more than one federal return, the TurboTax Desktop (CD/Download) version is generally the most cost-effective and flexible option, allowing unlimited preparation and five federal e-files. For single, simple returns, TurboTax Online might suffice.
How to start a new tax return in TurboTax Desktop?
Open the TurboTax Desktop software, go to the "File" menu at the top, and select "New Tax Return." This will open a fresh, blank return.
How to save multiple tax returns in TurboTax Desktop without overwriting?
Always use "File" > "Save As" when saving a new return for a different individual, giving it a unique and descriptive name (e.g., "Jane_Smith_2024.tax2024").
How to e-file more than five federal returns with TurboTax?
You cannot e-file more than five federal returns using personal tax preparation software like TurboTax due to an IRS limitation. For any returns beyond the fifth, you must print them out and mail them to the IRS.
How to file state returns for multiple individuals in different states using TurboTax Desktop?
You will need to purchase and install an additional state program within your TurboTax Desktop software for each different state you need to file for. Each state e-file typically incurs a separate fee.
How to track the number of federal e-files I've used in TurboTax Desktop?
TurboTax Desktop software usually displays a counter or provides a warning when you approach or reach the e-file limit. It's also good practice to manually keep a simple record.
How to get a refund for a second TurboTax Desktop purchase if I already reached the e-file limit?
Contact TurboTax customer support. Since the five e-file limit is an IRS rule tied to the software product, purchasing another copy and installing it on the same computer won't grant more e-files, and you may be eligible for a refund for the second purchase.
How to switch between different tax returns in TurboTax Desktop?
Go to "File" and then "Open Tax Return..." to browse and select the saved
.tax2024file for the specific individual whose return you want to work on.
How to print a return from TurboTax if I can't e-file it?
During the final review and filing steps in TurboTax, there will be an option to print your return for mailing. Follow the on-screen prompts.
How to create separate online accounts for multiple individuals using the same email address in TurboTax Online?
While you can use the same email address for up to five separate TurboTax Online accounts, each account must have a unique User ID. You will need to create a new account with a different User ID for each individual you are filing for online.
