So, you're wondering, "How many tax returns can I file with TurboTax?" It's a common and excellent question, especially if you're managing taxes for yourself, your family, or even a small business. The answer isn't a simple one-size-fits-all, as it depends on whether you're using TurboTax Online or the desktop software, and it also hinges on an important IRS limitation.
Ready to demystify this? Let's dive in!
Step 1: Understand the Core Difference: Online vs. Desktop
Before we get into the nitty-gritty, it's crucial to distinguish between TurboTax's online versions and its desktop software. This is the most critical factor in determining how many returns you can file.
TurboTax Online (Web-based): This is what you access directly through your web browser. It's convenient, accessible from anywhere, and often preferred for simpler tax situations.
TurboTax Desktop (CD/Download): This is software you purchase and install directly onto your computer. It offers more flexibility and, as you'll see, has different filing limits.
Now that we have that clear, let's explore the specifics for each.
Step 2: Filing Limits for TurboTax Online
If you're using TurboTax Online, here's what you need to know:
Sub-heading: One Federal Return Per Account
For TurboTax Online, you are generally limited to filing one federal tax return per online account (User ID) per tax year.
If you need to file a separate federal return for someone else (e.g., a child who needs to file their own return, or a parent), you will need to create a new TurboTax Online account with a separate User ID for each additional return.
Good news: While you need a new User ID for each return, you can use the same email address for notification purposes on up to five different TurboTax Online accounts.
Sub-heading: State Returns with Online Versions
Each federal return prepared using TurboTax Online will typically require a separate purchase or fee for its corresponding state return.
So, if you file two federal returns with two separate online accounts, you'll generally pay for two separate state returns as well.
Step 3: Filing Limits for TurboTax Desktop (CD/Download)
The desktop version of TurboTax offers significantly more flexibility when it comes to filing multiple returns.
Sub-heading: The IRS 5-E-File Limit
With the TurboTax Desktop software, you can prepare an unlimited number of federal tax returns. This means you can create as many tax files (.tax20XX files) as you need on your computer.
However, there's a crucial limitation imposed by the IRS (Internal Revenue Service), not by TurboTax itself: you are limited to five (5) electronic federal e-files from one software package or from one email address per tax year.
This limit is in place to reduce the incident of tax fraud and applies to individuals using personal tax preparation software. It does not apply to licensed tax preparers who use professional software.
Sub-heading: What Happens After 5 E-Files?
If you prepare more than five federal returns using your TurboTax Desktop software, you can still complete them. However, any returns beyond the initial five that you e-file must be printed, signed, and mailed to the IRS.
Important: Buying another copy of the TurboTax Desktop software and installing it on the same computer will not grant you additional e-files beyond the IRS limit of five from one software package/email address. The limit is tied to the software and the email/IP address it's registered with for e-filing.
Sub-heading: State Returns with Desktop Versions
For state returns with the desktop software, you typically pay a separate fee for each state e-file. Some versions might include one state download, but additional states or e-files usually incur an extra charge.
Similar to federal returns, if you exceed the e-file limit for states (which may vary or follow the federal 5-e-file rule), you will need to print and mail those state returns.
Step 4: Consider Your Specific Needs
Now that you understand the general rules, let's think about your situation:
Sub-heading: Household Filing
Married Filing Jointly: If you're married and filing jointly, this counts as one federal return. TurboTax handles both spouses' information within that single return.
Dependents: If you have dependents (children, elderly parents) whose income is minimal and they qualify to be claimed on your return, you generally include their relevant information on your return. You won't typically need to file separate returns for them unless they have significant income and filing requirements of their own.
Other Family Members (Not Dependents): If you're helping family members or friends who are not your dependents and need to file their own returns, then the limits discussed above apply. For TurboTax Online, they'd each need their own account. For desktop, you can prepare many but e-file only five.
Sub-heading: Business Returns
Sole Proprietorship/Single-Member LLC (Schedule C): If your business is a sole proprietorship or a single-member LLC, its income and expenses are typically reported on Schedule C, which is part of your personal federal income tax return (Form 1040). This counts as one personal federal return. TurboTax Home & Business is designed for these situations.
Other Business Structures (Partnership, S-Corp, C-Corp): If you have a multi-member LLC, partnership (Form 1065), S-Corporation (Form 1120-S), or C-Corporation (Form 1120), these entities often require separate business tax returns. TurboTax offers a specific "TurboTax Business" product for these more complex business filings, which is separate from their personal tax products.
Important Note: While TurboTax Business handles these entity returns, you would still need to report any pass-through income (like from a Schedule K-1) on your personal Form 1040, which would be handled by a personal TurboTax product (Online or Desktop).
Step 5: Choosing the Right TurboTax Product
Based on your filing needs, select the TurboTax product that aligns best:
For a single personal return (or a joint return with spouse and dependents claimed on your return): TurboTax Online (Free, Deluxe, Premier, Live Assisted, Full Service) is usually sufficient.
For multiple personal returns for different individuals (e.g., family members, friends) AND you want to e-file more than one but up to five: TurboTax Desktop is generally the way to go.
For more than five federal returns that you want to file electronically: You'll need to consider professional tax software or engage a licensed tax preparer, as the IRS 5-e-file limit for personal software will apply.
For separate business entity returns (Partnership, S-Corp, C-Corp): You'll need TurboTax Business software, which is a different product line.
Step 6: Maximizing Your TurboTax Experience
Keep Excellent Records: Regardless of how many returns you're filing, meticulous record-keeping is paramount. This makes the entire tax preparation process smoother and helps ensure accuracy.
Save Your Files: If you're using TurboTax Desktop, always save your .tax20XX data files and PDF copies of your returns to your computer or an external drive. This is crucial for future reference, amendments, or if you ever need copies for loans or other purposes.
Review Carefully: Even with tax software, it's always a good idea to thoroughly review your returns before filing. TurboTax has built-in checks, but a human eye can catch nuances or errors the software might miss.
Consider Audit Support: Some TurboTax products offer audit support. If you're filing multiple complex returns, this can provide an added layer of peace of mind.
Frequently Asked Questions (FAQs)
Here are 10 related FAQs to further clarify your TurboTax filing capabilities:
How to file more than one tax return with TurboTax Online? You will need to create a separate TurboTax Online account (with a new User ID) for each federal tax return you wish to prepare and file. You can use the same email address for multiple accounts for notification purposes.
How to e-file more than 5 federal returns with TurboTax Desktop? You cannot e-file more than five federal returns with a single personal TurboTax Desktop software purchase, due to an IRS-imposed limit. Any returns beyond the fifth must be printed, signed, and mailed to the IRS.
How to handle personal and business tax returns on one TurboTax account? If your business is a sole proprietorship or single-member LLC, its income is reported on Schedule C of your personal Form 1040, so you can generally use a personal TurboTax product (like Home & Business) for both. For other business structures (Partnerships, S-Corps, C-Corps), you'll need the separate "TurboTax Business" software for the entity's return, and then you'll report any personal pass-through income on your individual return.
How to file for a spouse and dependents with TurboTax? If you are married filing jointly, both your and your spouse's information is included in a single federal return. Dependents who qualify to be claimed on your return are also typically included within that same single return.
How to get more than 5 e-files if I purchase another TurboTax Desktop? Purchasing and installing another copy of TurboTax Desktop software on the same computer or under the same email/IP address will generally not grant you more than the IRS-mandated five federal e-files per tax year. The limit is tied to the software and e-filing registration.
How to file a state return for each federal return prepared with TurboTax? For each federal return you file, you will typically need to pay a separate fee for its corresponding state return, regardless of whether you use TurboTax Online (where each federal return needs its own account) or TurboTax Desktop.
How to avoid paying multiple times for TurboTax if filing for several family members? If you're using TurboTax Online, each federal return generally incurs a separate fee. If you're using TurboTax Desktop, you pay one price for the software, which allows you to prepare unlimited federal returns, though you are limited to five e-files. After five, you'll need to print and mail.
How to determine if I need TurboTax Personal or TurboTax Business? Choose TurboTax Personal (Free, Deluxe, Premier, Home & Business) if you are filing for yourself, your spouse, dependents, or if you have a sole proprietorship/single-member LLC. Choose TurboTax Business for filing corporate, S-corporate, or partnership returns.
How to ensure accuracy when filing multiple returns with TurboTax? Carefully input all data, utilize TurboTax's built-in error checks, and thoroughly review each return before filing. Keeping organized records for each individual or entity is paramount.
How to deal with a tax return that exceeds the e-file limit? If you've reached the five federal e-file limit with TurboTax Desktop, you must print the additional completed tax returns, sign them, and mail them to the IRS (and relevant state tax authorities if applicable).
