Have you started your taxes on TurboTax Online and suddenly realized that the CD/Download version might be a better fit for you this year? Perhaps you have multiple returns to file, prefer to work offline, or just like the idea of having a local copy of your tax software. Whatever your reason, switching from TurboTax Online to the CD/Download version is a common and entirely manageable process! This comprehensive guide will walk you through every step, ensuring a smooth transition.
Understanding the Difference: Online vs. CD/Download
Before we dive into the "how-to," let's quickly recap the fundamental differences between TurboTax Online and TurboTax CD/Download:
TurboTax Online: This is a web-based service. Your tax data is stored in the cloud, accessible from any device with an internet connection. It's often priced per return filed.
TurboTax CD/Download (Desktop): This is software you install directly on your computer (Windows or Mac). Your tax data is stored locally on your hard drive, offering more control and the ability to work offline. It typically allows you to prepare and e-file multiple federal returns (up to 5) and often includes one state program, making it more cost-effective for families or those with multiple filing needs. It also offers features like "Forms Mode" for direct access to tax forms, which isn't available in the online version.
The good news is that TurboTax does provide a way to transfer your data from your online return to the desktop software, saving you from re-entering all your information!
Step 1: Assess Your Current Situation and Purchase the Right Software
Are you ready to make the switch? Fantastic! The first crucial step is to figure out where you are in your TurboTax Online journey and then acquire the appropriate desktop software.
Sub-heading: Have You Started Your Return Online?
If you've already started your return on TurboTax Online: This guide is perfect for you! You'll be able to transfer your progress.
If you haven't started your return online and just decided to go with the CD/Download: Even easier! Simply skip to purchasing and installing the software.
Sub-heading: Choosing the Right TurboTax CD/Download Edition
TurboTax offers various editions (Basic, Deluxe, Premier, Home & Business, Business) to cater to different tax situations. It's important to choose the edition that aligns with your tax needs, just as you would with the online version. For example:
Deluxe: Good for homeowners, those with deductions, and investment income (though Premier is better for extensive investments).
Premier: Ideal for those with investments, rental property income, and extensive self-employment income.
Home & Business: Specifically designed for self-employed individuals, freelancers, and small business owners with Schedule C income.
Consider your income sources, deductions, and credits carefully to select the best fit. You can often find detailed comparisons on the TurboTax website or on the product packaging.
Sub-heading: Where to Purchase Your TurboTax CD/Download
You have a few options for acquiring the software:
Direct Download from TurboTax Website: This is often the quickest and most convenient option if your computer doesn't have a CD drive. Visit the official TurboTax website (turbotax.intuit.com) and navigate to the "CD/Download" section.
Retail Stores: You can purchase a physical CD at electronics stores, office supply stores, and even some major retailers. This will come with a license code that you'll use to activate the software.
Online Retailers (e.g., Amazon): Many online marketplaces sell the downloadable version, providing you with a license key via email.
Make sure to purchase the correct tax year's software!
Step 2: Download Your TurboTax Online Data File (.tax File)
This is the most critical step for a seamless transfer. TurboTax allows you to save your progress from the online version as a data file that can be imported into the desktop software.
Sub-heading: Accessing Your Online Return
Log in to your TurboTax Online Account: Go to the TurboTax website and sign in using your Intuit Account credentials (the same email and password you used to start your online return).
Navigate to Your Current Year's Return: Once logged in, you should see your in-progress tax return for the current tax year.
Sub-heading: Saving Your Tax Data File
The exact steps to save your .tax file might vary slightly depending on how far along you are in your online return, but generally, you'll be looking for an option to "Save" or "Download" your tax file.
Look for a "Save" or "Download" Option: Sometimes, this option appears under a "Tools," "Tax Tools," or "My Account" menu within your online return.
Consider the "Amend" Workaround (if direct save isn't obvious): If you're struggling to find a direct "save data file" option, a common workaround is to pretend you want to amend your return.
Click on the option to "Amend your return" (don't worry, you won't actually amend it).
TurboTax may then prompt you to download a copy of your
.taxfile for your records or to make the amendment in the desktop software. This is what you need!Crucially, once you download the file, you can then cancel out of the "amend" process in TurboTax Online. You will not be charged for amending if you don't complete the filing of the amendment online.
Confirm the File Type: The file you need will typically have a
.taxextension followed by the tax year (e.g.,mytaxes2024.tax).Choose a Safe Location: Save this file to a location on your computer where you can easily find it, such as your "Documents" folder or "Downloads" folder. Remember this location!
It's a good practice to also save a PDF copy of your online return for your records, even if you're switching to desktop.
Step 3: Install the TurboTax CD/Download Software
Once you have your .tax file from the online version and your CD/Download software (or download link and license code), it's time to install the program on your computer.
Sub-heading: Installation from a CD
Insert the CD: Place the TurboTax CD into your computer's CD/DVD drive.
Auto-Run or Manual Launch: In most cases, the installation process will start automatically. If it doesn't:
Open "This PC" or "My Computer."
Locate your CD/DVD drive (usually Drive D: or E:).
Double-click on the drive icon to open it.
Look for a file named
setup.exeorinstall.exeand double-click it to begin the installation.
Sub-heading: Installation from a Downloaded File
Locate the Downloaded Installer: If you purchased the download version, find the
.exefile (for Windows) or.dmgfile (for Mac) you downloaded from the TurboTax website or your online retailer. This is usually in your "Downloads" folder.Run the Installer: Double-click on the installer file to begin the installation process.
Sub-heading: Following the Installation Prompts
Regardless of whether you're using a CD or a downloaded file, the installation wizard will guide you through the process:
Accept the License Agreement: Read and accept the TurboTax License Agreement to proceed.
Choose Installation Location (Optional): You can usually accept the default installation location unless you have a specific reason to change it.
Enter Your License Code: At some point during the installation or the first time you launch the software, you'll be prompted to enter your 16-digit license code. This code is crucial for activating your software and is typically found on the CD sleeve, inside the product box, or in the email confirmation for downloaded versions. Enter it carefully!
Complete Installation: Follow any remaining prompts until the installation is complete.
Sub-heading: Initial Software Updates
After installation, it's highly recommended to immediately update the software. TurboTax regularly releases updates to incorporate the latest tax laws, forms, and bug fixes.
Launch TurboTax.
The software will usually prompt you to update automatically. If not, look for an "Update" or "Check for Updates" option within the program's menu (often under "Online" or "Help").
Allow the updates to download and install. This may require restarting the program.
Step 4: Transfer Your Data from TurboTax Online to the Desktop Software
This is the moment of truth! Now you'll import the .tax file you saved from your online account into your newly installed desktop software.
Open TurboTax Desktop: Launch the TurboTax program on your computer.
Start a New Return (or look for "Continue from Online"):
Often, when you first open the desktop software, you'll see an option like "Continue From TurboTax Online" or "Import from TurboTax Online." This is the easiest method.
If you don't see this option immediately, start a new tax return.
Initiate the Import Process:
If you chose "Continue From TurboTax Online," you'll be prompted to sign in to your Intuit Account. Do so, and TurboTax will attempt to automatically pull your data.
If you started a new return, look for an option like "File" > "Open Tax Return" or "File" > "Transfer Last Year's Return" (even though it's the current year's return, it's a "transfer" from a different platform).
You might also find an "Import" option within the setup wizard for a new return.
Browse to Your Saved .tax File: When prompted to locate the file, navigate to the folder where you saved your
.taxfile in Step 2.Select the File and Import: Choose the correct
.taxfile and confirm the import.
The desktop software will then process your online data and populate your return. This might take a few moments.
Sub-heading: Verify Your Transferred Data
It is absolutely crucial to review your transferred data carefully. While TurboTax's transfer process is generally reliable, always double-check:
Personal Information: Name, address, Social Security Number, date of birth.
Income Details: W-2s, 1099s, business income, etc.
Deductions and Credits: Ensure all your entered deductions and credits have carried over correctly.
Dependents: Verify all dependent information.
If anything looks incorrect, you can edit it directly within the desktop software.
Step 5: Complete Your Tax Return and File
Now that your data is successfully transferred, you can continue working on your tax return with the full functionality of the TurboTax CD/Download software.
Sub-heading: Navigating the Desktop Software
Interview Mode: Continue answering questions in the step-by-step interview mode, just like you would online.
Forms Mode: A key advantage of the desktop version is "Forms Mode." You can switch to this mode (usually a button or menu option) to directly view and edit the IRS forms that TurboTax is generating. This gives you a more detailed view of your return.
"What If" Worksheet: The desktop version often includes a "What If" worksheet, allowing you to model different scenarios (e.g., what if I contributed more to my IRA?) to see their impact on your tax outcome.
Sub-heading: Review and File Your Return
Comprehensive Review: Use TurboTax's "Review" or "Error Check" feature to scan for any potential errors or missing information. Address any warnings or errors.
Print for Your Records: Before filing, it's highly recommended to print a copy of your completed tax return for your personal records.
Choose Your Filing Method:
E-file: Most users choose to e-file their federal and state returns directly through TurboTax. The desktop software allows you to e-file up to 5 federal returns.
Print and Mail: You can also choose to print your return and mail it to the IRS and your state tax agency.
Remember to pay any applicable filing fees for e-filing your state return, if not included with your version.
Congratulations! You've Successfully Switched!
By following these steps, you've seamlessly transitioned your tax preparation from TurboTax Online to the more robust and controlled environment of the TurboTax CD/Download software. Enjoy the added flexibility and features!
Frequently Asked Questions (FAQs)
How to transfer last year's TurboTax Online data to this year's desktop version?
To transfer last year's TurboTax Online data to this year's desktop version, you'll first need to log into your previous year's TurboTax Online account and save your tax return as a .tax data file. Then, when starting a new return in your TurboTax desktop software, look for an option to "Transfer from prior year's TurboTax file" and select the .tax file you saved.
How to ensure all my entered information transfers correctly from online to desktop?
After importing your .tax file into the desktop software, thoroughly review all sections of your return. Pay close attention to personal information, income statements (W-2s, 1099s), deductions, and credits. Comparing a printed summary from your online return to the desktop version can help ensure accuracy.
How to install TurboTax CD/Download if my computer doesn't have a CD drive?
If you purchased a physical CD but lack a CD drive, you can often go to the TurboTax website (installturbotax.com) and enter your license code to download the software directly.
How to update my TurboTax desktop software after installation?
Once TurboTax desktop is installed, open the program. It typically prompts you to update automatically. If not, look for a "Check for Updates" or "Online" menu option within the software to manually initiate the update process.
How to handle state tax returns when switching to TurboTax CD/Download?
The desktop version typically includes one free state program download. After installing the federal software, the program will usually guide you through downloading and installing the corresponding state program when you reach the state section of your return.
How to resolve issues if my data doesn't transfer properly?
If your data doesn't transfer properly, first ensure you saved the correct .tax file from TurboTax Online. If the issue persists, you might need to manually re-enter some information. For critical errors, contacting TurboTax support might be necessary.
How to save my TurboTax desktop return for future reference or transfer?
To save your TurboTax desktop return, simply go to "File" > "Save" or "Save As" within the program. It's recommended to save both the .tax data file (e.g., mytaxes2024.tax) and a PDF copy of your completed return for easy viewing without the software.
How to compare the cost-effectiveness of TurboTax Online vs. CD/Download for my situation?
Generally, if you file only one simple federal return, TurboTax Online might be more cost-effective. However, for multiple federal returns (up to 5), or if you prefer direct control, offline access, and the "Forms Mode," the CD/Download version often proves more economical in the long run.
How to get technical support for TurboTax CD/Download software?
For technical support with TurboTax CD/Download, you can visit the TurboTax support website (ttlc.intuit.com) or use the help options available within the software itself. You may also find community forums helpful.
How to ensure my computer meets the system requirements for TurboTax CD/Download?
Before purchasing, check the system requirements listed on the TurboTax website or on the product packaging. These usually include operating system version (Windows/macOS), processor speed, RAM, and available hard drive space.
