Have you ever found yourself in the unique position of needing to file more than a handful of tax returns in a single tax year and wondered, "Can TurboTax even handle this?" Perhaps you're managing taxes for several family members, overseeing multiple rental properties, or dealing with complex investment portfolios across various entities. While TurboTax is a widely popular and user-friendly platform, it does have some nuances when it comes to filing a high volume of returns.
The good news is, yes, you can absolutely file more than 5 returns with TurboTax! The key lies in understanding the distinction between preparing returns and e-filing them, and leveraging the right version of the software. Let's dive into a comprehensive, step-by-step guide to navigate this process successfully.
Mastering Multi-Return Filings with TurboTax
Navigating multiple tax returns can feel like juggling flaming torches while riding a unicycle. But with the right approach and TurboTax, you can keep everything balanced and arrive at your tax-filing destination with confidence.
Step 1: Understand the TurboTax Multi-Return Landscape
Before you even open the software, it's crucial to grasp a fundamental rule: the IRS imposes a limit of 5 e-filed federal returns per single software package or email address per year. This isn't a TurboTax limitation, but an IRS regulation designed to prevent misuse by unregistered tax preparers.
What does this mean for you? If you're using TurboTax Online, each federal return typically requires a separate online account and User ID. Using the same account for multiple federal returns online will overwrite the previous one, leading to data loss!
The Desktop Advantage: This is where the TurboTax Desktop (CD/Download) versions shine. With the desktop software, you can prepare an unlimited number of federal returns. However, you are still limited to 5 free federal e-files per purchase of the desktop software. Any returns beyond those five will need to be printed and mailed.
Engage with this question: Which TurboTax version are you currently using or planning to use? Your answer will dictate the path you take in the following steps. If you're on TurboTax Online, you'll need to consider creating multiple accounts or switching to the desktop version for efficiency.
Step 2: Choosing the Right TurboTax Product
Your specific tax situations and the number of returns you need to file will influence the best TurboTax product for you.
Sub-heading: For Up to 5 E-filed Federal Returns
TurboTax Online: If you only need to e-file a few returns (up to 5), and each return is for a different taxpayer (e.g., yourself, your spouse, and one or two family members, each with their own unique tax situation), you can create a separate TurboTax Online account for each. This ensures you don't accidentally overwrite any data. Remember to keep meticulous records of each User ID and password!
TurboTax Desktop (Any Version): This is generally the most flexible option for preparing multiple returns. All desktop versions (Deluxe, Premier, Home & Business, Business) allow you to prepare numerous federal returns. You'll get 5 free federal e-files included with your purchase.
Sub-heading: For More Than 5 Federal Returns (or if you prefer paper filing)
TurboTax Desktop (Any Version) is essential here. Since the online versions are limited to one federal return per account, the desktop software is your go-to. You'll still have the 5 free e-files, but any returns beyond that will require manual printing and mailing. This is a common and perfectly acceptable method for the IRS.
Step 3: Preparing Your Returns (The Data Entry Phase)
This is where the magic happens – inputting all the financial data for each individual or entity.
Sub-heading: Setting Up New Returns in Desktop Software
Launch TurboTax Desktop: Open the TurboTax program on your computer.
Start a New Return: Go to the File menu at the top of the screen and select New Tax Return. This will create a fresh, blank return.
Enter Information for Each Taxpayer: Methodically go through the interview process for each separate tax return. This means entering all income, deductions, credits, and personal information for each individual or entity you are preparing a return for.
For individual returns: Be sure to include all W-2s, 1099s (NEC, MISC, INT, DIV, B, K, etc.), investment statements, self-employment income and expenses (Schedule C), rental property income and expenses (Schedule E), and any other relevant tax documents.
For business returns (if using TurboTax Business): Input all financial data related to the business, including revenue, cost of goods sold, operating expenses, assets, and liabilities.
Sub-heading: Managing Multiple Online Accounts (If applicable)
If, for some reason, you prefer to use TurboTax Online for more than 5 returns (and are comfortable with the e-file limitation), you'll need to:
Sign Out of Current Account: Always sign out completely after completing a return for one individual.
Create a New Account: Go to the TurboTax website and select "Sign Up" to create a brand new account with a different User ID. You can often use the same email address for notifications across multiple accounts, but the User ID must be unique.
Repeat for Each Return: Follow this process for every additional federal return you need to prepare.
Step 4: Reviewing and Optimizing Each Return
Once you've entered all the data for a return, it's time for thorough review. This is a critical step to ensure accuracy and maximize deductions.
Run CompleteCheck®: TurboTax has a built-in feature called CompleteCheck® (or similar in older versions). Always run this feature for each return. It will scan for errors, omissions, and potential missed deductions. Pay close attention to any "Needs Review" notifications and address them.
Utilize "What If" Scenarios: For individual returns, consider using any "What If" scenarios offered by TurboTax to explore different filing statuses (if applicable) or deduction strategies to see their impact on the refund or tax due.
Double-Check Deductions and Credits:
For self-employed individuals: Ensure all ordinary and necessary business expenses are captured. This could include home office deductions, mileage, advertising, supplies, and professional fees.
For rental property owners: Verify all eligible expenses, such as mortgage interest, property taxes, insurance, repairs, maintenance, and depreciation. Depreciation can significantly reduce taxable rental income.
For investors: Confirm all investment income and losses are accurately reported, including capital gains/losses, dividends, and interest.
State Returns: For each federal return, if a state filing is required, ensure you've linked the state return correctly and reviewed it as diligently as the federal return. State e-filing typically incurs an additional fee per state return in the desktop version, but you can always print and mail these for free.
Step 5: E-filing vs. Printing and Mailing
This is the point where the "more than 5 returns" aspect comes into play most prominently.
Sub-heading: E-filing Your First Five Returns (Desktop Users)
Select the Return to E-file: In your TurboTax Desktop software, open the return you wish to e-file.
Follow E-file Prompts: Navigate to the "File" section and choose "E-file my federal return." TurboTax will guide you through the remaining steps, including reviewing your personal information and entering your prior year's Adjusted Gross Income (AGI) for verification.
Repeat for Up to Five: You can repeat this process for up to five federal returns within that single purchase of the desktop software.
Sub-heading: For Returns Beyond the First Five: Print and Mail
Once you've used your 5 free e-files (or if you simply prefer to mail):
Prepare for Printing: Open the return you need to file by mail.
Select "Print & Mail": Go to the "File" section and choose the option to "Print & Mail" your federal (and state, if applicable) return.
Print All Required Forms: TurboTax will generate all the necessary forms, including your Form 1040, schedules, and worksheets. Print these clearly and legibly.
Sign and Date: Crucially, sign and date your federal return in the designated areas. If it's a joint return, both spouses must sign. Do the same for any state returns.
Attach Supporting Documents: Make sure to attach any required supporting documents, such as W-2s, 1099s, etc., as instructed by the IRS. Do not staple unless specified.
Mail to the Correct Address: The printed return will include the correct IRS mailing address based on your location and whether you're sending a payment. Double-check the address before mailing.
Keep Copies: Always, always, always keep a complete copy of your filed return and all supporting documents for your records. It's recommended to keep these for at least seven years.
Step 6: Post-Filing Considerations
Your work isn't quite done after hitting "e-file" or dropping returns in the mail.
Track E-file Status: If you e-filed, use the TurboTax website or the "Tools" section in your desktop software to track the status of your e-filed returns. You'll receive email notifications from TurboTax and the IRS confirming acceptance.
Monitor Mail Delivery: For mailed returns, consider using a return receipt service from your postal provider for important returns, giving you proof of delivery.
Respond to IRS Notices: If you receive any notices from the IRS (or state tax authority), do not ignore them. Read them carefully and respond promptly. TurboTax often provides guidance on common IRS notices.
Amending Returns: If you discover an error after filing, you may need to amend the return using Form 1040-X. TurboTax can assist with this process for returns filed using their software.
10 Related FAQ Questions:
How to manage multiple state returns when filing more than 5 federal returns with TurboTax Desktop?
You can prepare an unlimited number of state returns for the state included with your TurboTax Desktop software. Each e-filed state return typically costs an additional fee, but you can print and mail them for free, regardless of the federal e-file limit. If you need to file for different states, you'll generally need to purchase additional state programs within the software.
How to import data from financial institutions for multiple returns in TurboTax?
TurboTax Desktop versions allow you to import financial data from various institutions. For each new return you create within the software, you can go through the import process. If you're using separate online accounts, you'd do the import for each individual account.
How to handle self-employment income for multiple Schedule C filers within TurboTax?
TurboTax Home & Business (desktop) or TurboTax Premium (online) are designed to handle self-employment income and expenses (Schedule C). For each self-employed individual or separate business, you will set up a new Schedule C within their respective return in the desktop software, or within their individual online account.
How to manage rental property income and expenses for multiple properties in TurboTax?
Similar to self-employment, TurboTax Premier or Home & Business (desktop) and TurboTax Premium (online) are best for rental properties. Within a single tax return, you can add multiple rental properties and input their respective income and expenses on separate Schedule E forms. If the properties belong to different taxpayers, you'll need separate returns as outlined above.
How to troubleshoot common errors when preparing multiple returns in TurboTax?
Common errors often relate to data entry. Utilize the "Review" or "CompleteCheck®" feature extensively. Also, ensure you are correctly differentiating between returns and not accidentally overwriting data, especially if using online versions. If issues persist, refer to the TurboTax support community or contact their customer service.
How to ensure data privacy and security when filing multiple returns for others?
When preparing returns for family members or others, always prioritize data privacy. Use strong, unique passwords for each TurboTax Online account. If using desktop software, ensure your computer is secure with antivirus software and a firewall. Avoid sharing sensitive tax information over unencrypted channels.
How to track the status of mailed returns when exceeding the e-file limit?
For mailed returns, the IRS provides a "Where's My Refund?" tool online, but it only works after your return has been processed. To get proof of mailing, consider using services like Certified Mail with a Return Receipt from your postal service. Keep meticulous records of mailing dates.
How to amend a return if a mistake is found after filing more than 5 returns with TurboTax?
TurboTax can help you prepare an amended return (Form 1040-X) for any year you filed using their software. You'll typically need to open the original return in TurboTax, make the corrections, and then follow the prompts to create the amended return. Amended returns cannot be e-filed and must always be printed and mailed.
How to account for foreign income or investments across multiple returns in TurboTax?
TurboTax Premier or Home & Business can handle various foreign income situations, including foreign tax credits and exclusions. For each return, you would enter the relevant foreign income information. If you're dealing with complex foreign assets, consulting with a tax professional specializing in international tax may be beneficial.
How to handle various income types (investment, business, rental) across multiple individuals in TurboTax?
For each individual's return, TurboTax provides dedicated sections for different income types. For example, investment income from 1099-B/DIV/INT goes in the investment section, business income on Schedule C, and rental income on Schedule E. The key is to keep each individual's financial documents organized and enter them into their specific tax return.