You've found yourself in TurboTax Premium, and perhaps you're thinking, "Do I really need all these bells and whistles?" Or maybe your tax situation turned out to be simpler than you anticipated. Whatever the reason, deciding to downgrade from TurboTax Premium can save you money and simplify your tax filing process.
It's a common scenario! Many users start with a higher-tier product like Premium, assuming their tax situation will be complex, only to realize later that a lower-cost option, like TurboTax Deluxe or even the Free Edition, would suffice. The good news is that it's often possible to downgrade, especially if you haven't paid or filed your taxes yet. However, there are some important considerations and steps to follow, as the process isn't always immediately obvious.
Let's dive into a comprehensive, step-by-step guide on how to navigate this!
How to Get Out of TurboTax Premium: A Step-by-Step Guide
Step 1: Assess Your Tax Situation and Product Needs
Before you even think about clicking "downgrade," take a moment to honestly evaluate your tax situation. This is the most crucial step!
Why did you choose Premium in the first place? Did you have investments, rental properties, or self-employment income that initially led you to select Premium?
Has your tax situation changed? Perhaps you sold off your rental property, or your freelance income was less significant than anticipated.
What does each TurboTax product offer? It's vital to understand the distinctions between TurboTax products.
TurboTax Free Edition: Best for simple tax returns (Form 1040 only), W-2 income, standard deduction, limited credits like EITC or Child Tax Credit.
TurboTax Deluxe: Ideal for homeowners, those with significant deductions (like charitable donations, medical expenses), and those who need to itemize. It generally handles W-2 income, interest, dividends, and offers guidance on over 350 deductions and credits.
TurboTax Premium (Online) / Premier (Desktop): Designed for investors (stocks, bonds, crypto), rental property owners, and those with more complex investment income scenarios.
TurboTax Self-Employed: For freelancers, independent contractors, small business owners, and gig economy workers with Schedule C income.
If your current tax situation doesn't involve the complexities covered by Premium, then downgrading is likely a good idea. Don't pay for features you don't need!
Step 2: Check Your Filing Status and Payment
The ability to downgrade largely depends on whether you have already paid for your TurboTax Premium product or if you've already filed your return.
Have you paid for TurboTax Premium yet?
If NO: You generally have more flexibility to downgrade. TurboTax often allows you to switch products if you haven't completed the payment process.
If YES: Downgrading becomes more complicated, and you might need to contact customer support directly for a refund or credit, or in some cases, start over completely.
Have you filed your tax return?
If NO: You're in a good position to downgrade.
If YES: Once your return is filed and accepted by the IRS (or state), you cannot simply "downgrade" the product for that specific return. Your options would be limited to amending your return if there's an error, which is a separate process.
Step 3: Attempting the Downgrade Within TurboTax Online
For most users, the attempt to downgrade will happen within the TurboTax Online platform.
Sub-heading: Accessing the "Review Your Order" Screen
Sign in to your TurboTax account.
Navigate through your return as if you are preparing to file. You'll typically proceed through screens until you reach a section like "Just a few steps left..." or a similar final review stage.
Look for an option to "Start" or "Revisit" next to Step 1: Review Your Order. This is where your current product selection and pricing will be displayed.
Sub-heading: Looking for the "Downgrade" Option
On the order summary screen, carefully scan for a "Downgrade" button or link. It might be subtly placed.
If you see it, click on it. TurboTax will then guide you through the process of selecting a lower-tier product that still meets your tax needs. It will likely re-calculate your fees.
Step 4: When the "Downgrade" Option is Missing: Clearing and Starting Over
Many users report that the direct "Downgrade" option isn't always available, especially if you've progressed significantly in your return or if certain forms have been populated that trigger the need for Premium. In such cases, TurboTax's common recommendation is to clear your return and start over.
Sub-heading: Understanding "Clear and Start Over"
This feature effectively wipes out all the data you've entered for your current tax year's return. It's a complete reset.
Important Warning: Before you "Clear and Start Over," it's highly recommended to take screenshots or print out key summaries of the information you've already entered. This will make re-entering your data much faster and less prone to errors. Focus on W-2 summaries, 1099s, major deductions, etc.
Sub-heading: How to "Clear and Start Over"
While in your TurboTax Online return, look for "Tax Tools" on the left-hand sidebar (or within a menu icon on mobile).
Click on "Tax Tools."
Select "Clear & Start Over."
Confirm your decision. This action cannot be undone for that specific return.
Sub-heading: Choosing a New Product After Clearing
After clearing your return, you will be taken back to the beginning of the tax filing process.
This is your opportunity to select the correct, lower-tier TurboTax product (e.g., Deluxe, or even the Free Edition if you qualify). Be very careful to select the appropriate version this time!
Proceed with re-entering your tax information using your notes or screenshots.
Step 5: Contacting TurboTax Customer Support
If you've tried the above steps and are still stuck, or if you've already paid for Premium, contacting TurboTax Customer Support is your next course of action.
Sub-heading: When to Contact Support
You don't see a "Downgrade" option and are hesitant to "Clear and Start Over."
You've already paid for TurboTax Premium and want to explore a refund or credit for a lower-cost product.
You believe you were incorrectly upgraded to Premium.
You're experiencing technical difficulties preventing a downgrade.
Sub-heading: How to Reach TurboTax Support
Visit the official TurboTax support website.
Look for options like "Contact Us," "Help & Support," or a "Community" forum.
You might have options for live chat, phone support, or asking a question in their community forum. Phone support often provides the most direct and personalized assistance for complex billing or product-switching issues.
Be prepared to provide your account details and clearly explain your situation. Be polite but firm about your desire to downgrade and the reasons why.
Step 6: Consider Alternative Filing Options (If Necessary)
In some rare and frustrating cases, especially if you've already paid or your situation is exceptionally tricky, it might be more straightforward (though perhaps more time-consuming) to consider alternative tax filing methods.
Sub-heading: Free File Alliance
If your Adjusted Gross Income (AGI) is below a certain threshold, you might qualify for IRS Free File. This program partners with various tax software providers (including sometimes TurboTax) to offer free federal tax filing. Check the IRS Free File website for eligibility and participating providers.
Sub-heading: Other Tax Software
Many other reputable tax software providers exist, such as H&R Block, TaxAct, TaxSlayer, and FreeTaxUSA. If TurboTax is proving too difficult to downgrade, you might consider starting fresh with a different provider that better suits your needs and budget. Remember to export or save your data from TurboTax if you decide to go this route, to avoid re-entering everything from scratch.
Frequently Asked Questions (FAQs)
Here are 10 related FAQ questions with quick answers:
How to Downgrade TurboTax Online if I don't see the option? If you don't see a direct "Downgrade" option, your best bet is usually to "Clear & Start Over" from the "Tax Tools" menu and then select the desired lower-tier product. Remember to save your data beforehand!
How to Get a Refund for TurboTax Premium if I accidentally upgraded? If you've already paid, contact TurboTax Customer Support directly. Explain your situation and request a refund or credit for a lower-priced product. Success depends on their policy and how far along you are in the filing process.
How to Know if I Qualify for TurboTax Free Edition? Generally, you qualify if you have a simple tax return, primarily W-2 income, take the standard deduction, and only claim common credits like the Earned Income Tax Credit (EITC) or Child Tax Credit. Check the TurboTax Free Edition page for current eligibility criteria.
How to Export My Tax Data from TurboTax Before Clearing? While TurboTax doesn't have a direct "export all data" button, you can often print or save a PDF of your in-progress return summary or individual forms. Go to the "Tax Tools" or "Print Center" section for options.
How to Avoid Accidental Upgrades in TurboTax? Always read the screens carefully during the tax preparation process. TurboTax may suggest upgrades based on your input. If you don't need the additional features, decline the upgrade or look for smaller text indicating alternative options.
How to Contact TurboTax Customer Service for Downgrade Issues? Visit the TurboTax support website and look for "Contact Us" or "Help." You'll typically find options for live chat or phone support. Be prepared with your account information.
How to Tell the Difference Between TurboTax Premium and Premier? "Premium" typically refers to the online version of the highest-tier product, while "Premier" is often used for the desktop software equivalent that caters to investors and rental property owners.
How to Switch from TurboTax Premium to Self-Employed? If your primary need is self-employment income reporting (Schedule C), you'll need TurboTax Self-Employed. If you're currently in Premium and need Self-Employed, you might need to clear your return and select Self-Employed, or contact support if you've already paid.
How to Downgrade TurboTax Live products (Live Assisted, Full Service)? Downgrading from TurboTax Live (where you get expert help) is often more difficult. If you haven't used the expert feature or haven't paid, you might be able to downgrade via the "Review Your Order" screen or by clearing your return. If you've used the service, it's generally not possible to downgrade without a fresh start or contacting support for specific circumstances.
How to Choose the Right TurboTax Product Next Time? Before starting, review your income types (W-2, investments, self-employment), deductions (standard vs. itemized), and credits. Use the TurboTax product comparison chart on their website to match your tax situation to the most appropriate (and cost-effective) product.
