Navigating the world of taxes can be a head-scratcher, especially when it comes to understanding how many TurboTax accounts you can have. Many people wonder if they can use one account for their entire family or if each individual needs their own. The answer, as with most things tax-related, depends on a few key factors: primarily, which version of TurboTax you're using (online vs. desktop software) and who you're filing for.
Let's dive in and unravel this common tax mystery, step by step!
Understanding TurboTax Accounts: Online vs. Desktop
Before we get into the specifics of how many accounts you can have, it's crucial to understand the fundamental difference between TurboTax's online platform and its desktop (CD/download) software. This distinction heavily influences the number of returns and accounts you can manage.
Step 1: Are You Using TurboTax Online or Desktop Software?
This is the most critical question to ask yourself right from the start! Your answer will dictate your path forward.
Option A: TurboTax Online (Web-based)
This is the version you access directly through your web browser (e.g., Chrome, Firefox, Edge).
It's convenient and accessible from any internet-connected device.
Each individual tax return requires its own separate TurboTax Online account.
Option B: TurboTax Desktop Software (CD/Download)
This is the software you purchase, download, and install directly onto your computer.
It's typically a one-time purchase for the tax year.
This version offers more flexibility when it comes to preparing multiple returns.
Let's explore each option in detail.
TurboTax Online: One Return Per Account
If you're using TurboTax Online, the rule is pretty straightforward: one federal tax return per account.
Step 2: Creating Separate Accounts for Each Individual (TurboTax Online)
For every federal tax return you need to prepare using TurboTax Online, you'll need to create a separate, unique TurboTax account. This applies even if you're filing for family members.
Sub-heading: Why Separate Accounts for Online?
Data Segregation: Each online account is designed to keep a single taxpayer's information separate and secure. This prevents accidental mixing of data between different returns.
IRS E-file Limits: The IRS has a limit on the number of federal e-files that can originate from a single IP address or account, typically five. However, TurboTax Online is designed for one return per account.
Billing and Payment: Each online return is a separate transaction and is typically paid for individually.
Sub-heading: Can I Use the Same Email Address?
Yes, you can use the same email address for up to five different TurboTax Online accounts. While each account needs a unique User ID (which can be a different email address or a distinct username), you can associate multiple accounts with the same notification email. This means you'll receive notifications for all linked accounts to that single email.
Step-by-Step: Creating Multiple TurboTax Online Accounts
Log Out of Your Current Account: If you're currently logged into a TurboTax Online account, make sure to log out completely.
Go to the TurboTax Website: Navigate to the official TurboTax website.
Choose Your Product: Select the TurboTax Online product you wish to use (e.g., Free Edition, Deluxe, Premier, Self-Employed).
Initiate a New Return: Start the process of preparing a new tax return.
Create a New Account: When prompted, choose to "Create your account" or "Set up a new login."
Important: You will need a unique User ID for each new account. This User ID can be a different email address or a distinct username.
Enter Account Details: Provide the necessary details for the new taxpayer whose return you're preparing.
Repeat as Needed: Repeat this process for each additional individual whose tax return you need to complete using TurboTax Online.
Remember: While you can use the same email for notifications, the actual login (User ID) for each account must be distinct.
TurboTax Desktop Software: More Flexibility for Multiple Returns
The desktop version of TurboTax offers significantly more flexibility for preparing multiple returns from a single purchase.
Step 3: Understanding the Desktop Software License
When you purchase the TurboTax desktop software (CD or download), the license generally allows you to:
Install on Multiple Computers: You can typically install the software on up to five computers that you own.
Prepare Multiple Federal Returns: You can prepare and electronically file up to five federal tax returns from a single software license.
Prepare Multiple State Returns: For the one specific state included with your software, you can also prepare multiple state returns (the number often aligns with the federal e-file limit). Additional state programs usually need to be purchased separately.
Sub-heading: Who Can You File For with Desktop Software?
The End User License Agreement (EULA) for TurboTax desktop versions typically states that you can use the software to prepare tax returns for yourself and your immediate family. This generally includes:
Your spouse (if filing jointly or separately)
Your children (dependents or those filing their own returns)
Other qualifying dependents
However, be aware: You cannot use your TurboTax desktop software license to prepare returns for clients as a paid tax preparer. That falls under a different licensing agreement (TurboTax Business or professional tax software).
Step-by-Step: Preparing Multiple Returns with TurboTax Desktop
Install the Software: Install the TurboTax desktop software on your computer (if you haven't already).
Open the Software: Launch the TurboTax program.
Start Your First Return: Begin preparing the first tax return (likely your own). Save it when you are done.
Start a New Return: To prepare another return, go to the File menu at the top left of the program screen and click New Tax Return.
This will open a fresh, blank return within the same software installation.
Prepare the Next Return: Proceed to prepare the tax return for the next individual (e.g., your spouse, child).
Save Each Return Separately: It is crucial to save each return with a unique file name so you don't accidentally overwrite a previous one. TurboTax usually prompts you for this.
E-File or Print: Once each return is complete, you can choose to e-file it (up to the five federal limit) or print and mail it.
Important Note on E-filing with Desktop: While you can prepare numerous federal returns with the desktop software, the IRS e-file limit from a single instance of personal tax preparation software is five federal returns. If you need to file more than five, those additional returns will need to be printed and mailed to the IRS.
Specific Scenarios and Considerations
Let's address some common situations that might lead you to wonder about multiple accounts.
Married Couples: Joint vs. Separate Returns
Married Filing Jointly: If you're married and choose to file jointly, you only need one TurboTax account (online) or one tax file (desktop) for both of your incomes and deductions. Your returns are combined into a single submission.
Married Filing Separately: If you and your spouse choose to file "Married Filing Separately," then each of you will need your own separate TurboTax Online account (if using online) or separate tax files within your desktop software. Even though you're married, you're filing two distinct returns.
Dependent Children
If your child is a dependent and has minimal income (e.g., from a summer job), their income might be reported on your tax return (Form 8814 for certain investment income). In this case, no separate account is needed for them.
If your child earns enough income to be required to file their own tax return, they will need their own separate TurboTax account (online) or a separate tax file within your desktop software.
Small Business Owners (Sole Proprietorship/Single-Member LLC)
If you're a sole proprietor or have a single-member LLC (meaning your business income and expenses are reported on your personal tax return, typically Schedule C), you would generally use a TurboTax product like "Self-Employed" or "Home & Business." This is still part of your personal tax return, so it doesn't require a separate account for the business itself.
However, if you have a more complex business structure (e.g., S-Corp, C-Corp, multi-member LLC, Partnership), you would need to use TurboTax Business software, which is a separate product entirely and handles those specific business tax forms. This would be distinct from your personal TurboTax account.
Summary of Key Takeaways:
TurboTax Online: One federal return per account. You can use the same email for notifications on up to five accounts, but each login (User ID) must be unique.
TurboTax Desktop Software: Allows you to prepare and e-file up to five federal returns from a single purchase for yourself and your immediate family. Additional returns can be prepared but must be mailed. Can be installed on up to 5 computers you own.
Understanding these distinctions is key to a smooth tax filing experience!
10 Related FAQ Questions
How to create a second TurboTax Online account?
You create a second TurboTax Online account by logging out of your current account, going to the TurboTax website, choosing your desired product, and selecting the option to "Create your account" with a new, unique User ID.
How to file taxes for my spouse separately using TurboTax?
To file taxes for your spouse separately using TurboTax Online, you each need to create a distinct TurboTax account and prepare separate returns. If using desktop software, you create two separate tax files within the program, one for each spouse.
How to prepare multiple family returns with TurboTax Desktop?
With TurboTax Desktop, after completing and saving the first return, go to the "File" menu and select "New Tax Return" to start another return. Repeat for each family member, ensuring you save each file with a unique name.
How to link multiple TurboTax accounts to one email?
While each TurboTax Online account requires a unique User ID, you can often use the same email address for notification purposes across multiple accounts (up to five). When creating a new account, enter the email address you want to receive notifications on.
How to avoid overwriting a TurboTax Online return?
You avoid overwriting a TurboTax Online return by ensuring you are logged into a different, separate account for each distinct tax return you wish to prepare. Never start a new person's return while logged into an existing return's account.
How to find my TurboTax license code for desktop software?
Your TurboTax desktop license code is typically found on the CD sleeve, in your purchase confirmation email (for downloads), or within your TurboTax online account history if you purchased it digitally through Intuit.
How to get more than five e-files with TurboTax?
If you've reached the five federal e-file limit with TurboTax desktop software, any additional returns you prepare must be printed, signed, and mailed to the IRS. There is no way to bypass the IRS's e-file limit of five for personal tax preparation software.
How to switch between different TurboTax accounts online?
To switch between different TurboTax accounts online, you must completely log out of your current account and then log in again using the unique User ID and password for the other account you wish to access.
How to use TurboTax for a small business (sole proprietorship)?
If your small business is a sole proprietorship or single-member LLC, you typically use a personal TurboTax product like "TurboTax Self-Employed" or "Home & Business." This will allow you to report your business income and expenses on Schedule C as part of your personal Form 1040.
How to handle dependent children's tax returns in TurboTax?
If your dependent child's income requires them to file their own return, they will need a separate TurboTax account (online) or a separate tax file within your desktop software. If their income is reported on your return (e.g., through Form 8814), no separate account is needed for them.
