TurboTax Online vs Desktop Download vs CD: Which Is Better?

In the age of digital technology, tax preparation has become more accessible than ever.

Remember the days of poring over piles of paperwork and manually calculating figures? They’re finally gone. Say hello to tax software like TurboTax.

In this article, we will compare TurboTax download versions vs TurboTax online vs CD to help you choose the right option. Should you go for TurboTax Online, the downloadable desktop version, or the traditional CD installation?

Without further ado, let’s delve into each option’s key differences and benefits and help you decide which suits your needs best.

What is the Difference Between TurboTax Online and Software Downloads/CDs?

The main difference between TurboTax download vs online vs CD options is the mode of access and installation. For instance, TurboTax Online is web-based; you can access it through a web browser and file taxes from any device with a safe and stable internet connection.

On the other hand, the TurboTax software download involves installing the program directly onto your PC, providing offline accessibility and potentially faster performance.

As you can assume, the CD version requires physical installation from a CD-ROM.

So, each option has advantages and considerations, which you can explore in detail in our comprehensive TurboTax review. Now, let’s explore what is the difference between TurboTax online and TurboTax desktop.

Many people prefer TurboTax Online because it provides the convenience of accessing your tax information from any device with a safe and stable internet connection.

This web-based platform eliminates software installation or updates, as everything is managed online. You can securely access your tax returns from anywhere, making it ideal for those who require flexibility or frequently switch between devices.

On the other hand, the TurboTax download offers offline access. Once installed on your PC, you can use the program without accessing the internet.

This is great for people who prefer to work on their taxes without relying on internet connectivity or have limited access to a stable internet connection.

Additionally, the desktop version may offer faster performance, as it doesn’t depend on internet speed.

The CD version of TurboTax requires the physical installation of the software using a CD-ROM drive. This option is excellent for people who prefer a tangible copy of the software or have limited internet access.

However, as technology advances, many modern devices, such as laptops and some desktop computers, may no longer include a CD-ROM drive. So, ensure that yours is compatible before choosing this option.

Lastly, note that TurboTax Online and software downloads receive automatic updates, ensuring you have the latest tax forms, calculations, and software enhancements.

With the CD version, you may need to manually check for updates or buy new CDs for future tax years.

TurboTax Online vs Desktop Download vs CD Comparison Chart

Here’s a quick comparison of TurboTax’s various versions before we dive deep into the features, functionalities, benefits, and downsides of each:

TurboTax Online vs Download and CD Pricing

TurboTax Online wins regarding pricing, as it’s cost-effective and flexible. The pricing structure for TurboTax Online typically offers different tiers based on the complexity of your tax situation.

So, you can choose the most suitable and affordable option. This flexibility ensures you only pay for the needed features, making it budget-friendly for many users.

Winner: TurboTax Online

TurboTax Online eliminates the need for upfront costs associated with buying software downloads or CDs. You can access TurboTax Online directly through your web browser without purchasing or installing anything.

This makes it more accessible and convenient, especially for individuals who want a hassle-free approach to tax preparation.

Moreover, TurboTax Online often includes free federal e-filing, providing further savings than purchasing separate e-filing services or printing and mailing physical returns.

This feature streamlines the filing process and reduces costs associated with traditional paper filing.

While TurboTax desktop download and CD versions offer advantages, such as offline access or a physical copy, they typically come with upfront costs that can be higher than the online version.

Lastly, these options may require extra payments for state returns or e-filing services.

TurboTax Desktop vs Online Free Versions

When comparing TurboTax software vs online free versions, TurboTax Online Free emerges as the winner because it’s easily accessible, easy to use, and affordable.

The free edition of TurboTax Online is perfect for individuals with simple tax situations, such as freelancers; it allows them to file their federal taxes for free.

Winner: TurboTax Online

The free version of TurboTax Online provides a user-friendly interface and step-by-step guidance, making it easy for users to navigate their tax preparation process.

The online platform ensures that users can access the latest tax forms, calculations, and updates; they’re automatically incorporated into the software.

In contrast, the free desktop version may offer a free trial version or limited functionality but often comes with more restrictions or limitations than TurboTax Online.

The desktop version may require a separate purchase or upgraded edition for certain tax forms or additional features, which can result in unexpected costs.

Furthermore, TurboTax Online Free allows for electronic filing (e-filing) of federal returns, eliminating the need for printing and mailing physical returns.

This saves time and effort and avoids the costs associated with traditional paper filing, such as postage fees.

However, TurboTax Online isn’t suitable for more complex scenarios. In such cases, TurboTax offers paid versions, both online and desktop, that provide enhanced features and support for a wider range of tax situations.

Customer Support

TurboTax Online wins the customer support comparison because it has comprehensive and accessible support options.

Winner: TurboTax Online

TurboTax Online provides a help center covering many tax-related topics. Users can access articles, FAQs, and video tutorials to find answers to common questions or seek guidance on specific tax situations.

The online help center offers self-help resources that can address most queries or concerns.

Additionally, TurboTax Online has a great online community where users can engage with fellow taxpayers and tax experts.

TurboTax Online also offers live chat support, so users connect with a tax professional in real-time and receive immediate assistance for their inquiries or technical issues.

Live full service is especially helpful for handling questions or clarifying doubts during tax preparation.

In comparison, TurboTax Desktop and CD versions also provide customer support options, including offline help centers and phone support.

However, TurboTax Online’s help center, community forums, and live chat support offer greater accessibility, convenience, and real-time assistance.

Knowledgebase & Learning

TurboTax Online wins the knowledge base and learning comparison because it has many resources and accessible learning materials.

Winner: TurboTax Online

TurboTax Online has a large knowledge base with many articles, FAQs, and guides.

The online platform offers comprehensive information on various tax topics, deductions, credits, and more.

Users can easily search for specific topics or browse through the organized content to find answers to their tax-related questions.

One of the important TurboTax differences is that TurboTax Online offers interactive guidance throughout the tax preparation process. It has relevant questions and explanations, ensuring a thorough understanding of each section’s tax implications and requirements.

Additionally, TurboTax Online includes video tutorials visually guiding users through specific tasks or complex tax scenarios. These videos provide instructions, tips, and explanations to help users navigate tax preparation.

Lastly, TurboTax Online has a very active online community where users can engage with fellow taxpayers and tax experts.

This community platform allows users to ask questions, share insights, and more.

TurboTax Desktop and CD also provide knowledge bases and learning materials. Still, TurboTax Online offers greater accessibility, interactive guidance, and a broader range of resources.

TurboTax CD vs Online and Download Features & Functionality

Now, let’s look closely at either option’s crucial features and functionality and make a wise pick.

TurboTax CD vs Download and Online Version for Ease of Use?

TurboTax Online wins the ease-of-use comparison due to its user-friendly interface, accessibility, and convenience.

Winner: TurboTax Online

TurboTax Online has a very intuitive and user-friendly interface. The software provides a step-by-step approach, guiding first-time users through tax preparation.

The interface is designed to simplify complex tax concepts and procedures, making it easier for users to understand and complete their tax returns.

The best part? You can access TurboTax Online from any device with a safe and stable internet connection.

Lastly, TurboTax Online doesn’t require software downloads or installations. Users can access the software directly through their web browser, which is very convenient.

Conversely, TurboTax CD and TurboTax downloadable version may require installation on specific devices, limiting the flexibility and accessibility of the software.

Moreover, these versions may require users to manually update the software to ensure they have the latest features and tax information.

In conclusion, when it comes to the difference between TurboTax online and download, online version wins for its convenience.

Mobile Apps

TurboTax also offers mobile apps for iOS and Android devices, providing users with another convenient option for tax preparation.

Winner: Tie

TurboTax mobile apps allow users to prepare and file taxes directly from their smartphones or tablets.

This mobile accessibility enables users to work on their taxes anytime and anywhere, making it convenient for those who frequently move or prefer using mobile devices.

Moreover, TurboTax mobile apps feature a user-friendly interface designed for mobile devices.

The interface is optimized for smaller screens and touch controls, providing a seamless and intuitive experience for users navigating the tax preparation process.

Additionally, the mobile apps offer mobile-specific features and capabilities, such as snapping photos of your W-2 forms for easy input, importing tax data directly from your mobile device, and securely signing documents with a digital signature.

These mobile-optimized features boost convenience and streamline the tax preparation process on mobile devices.

But here’s the kicker. TurboTax mobile apps sync with your TurboTax online account, allowing seamless integration and access to your tax data across multiple devices.

However, the mobile apps don’t support all the advanced features or meet complex tax needs. Therefore, users with more complex tax situations should consider the desktop or online version for additional functionality.

Email Tracking

TurboTax doesn’t offer email tracking. It provides tax preparation software and tools to assist users in accurately completing their tax returns.

While TurboTax offers email customer support, they don’t have a built-in email tracking system to monitor the status or delivery of emails sent to their support team.

Integrations

TurboTax Online won the integration comparison because it has seamless integration capabilities with various financial platforms and services.

Winner: TurboTax Online

With TurboTax Online, you can import financial data directly from various sources, including banks, financial institutions, and employers.

This integration streamlines the tax preparation process by automatically populating relevant information, such as income, deductions, and investments, saving time and effort.

Furthermore, TurboTax Online integrates with employers and financial institutions to automatically import W-2 and 1099 forms.

This integration eliminates the need for manual entry of these forms, reducing the risk of errors and ensuring accurate income and tax-related information reporting.

Additionally, TurboTax Online has partnerships with various financial service providers and platforms.

For example, it integrates with popular investment platforms, such as Robinhood and Coinbase; you can import your investment information directly into your tax returns.

Lastly, TurboTax Online integrates with the IRS e-filing system, allowing you to submit tax returns electronically. This integration ensures a smooth and efficient filing process, eliminating the need for printing and mailing paper returns.

On the other hand, TurboTax Desktop and CD versions also have some integration capabilities. However, TurboTax Online’s cloud-based nature and partnerships enable a wider range of integrations and automation.

Product Limitations

TurboTax Online is the winner in comparing product limitations because it’s more flexible and has fewer limitations.

Winner: TurboTax Online

TurboTax Online is a cloud-based platform accessible from any device with a safe and stable internet connection. So, users can work on their taxes from various devices, such as computers, laptops, tablets, or smartphones.

Moreover, TurboTax Online automatically updates everything, ensuring users have the most up-to-date information and calculations.

TurboTax Online securely stores all tax information in the cloud.

Users can access their tax returns and data from any device without worrying about physical storage or the risk of data loss.

The data is protected with robust security measures, offering peace of mind regarding the confidentiality and privacy of sensitive tax information.

Lastly, TurboTax Online is scalable, accommodating many tax situations.

Whether you have simple tax returns or more complex situations involving investments, rental properties, or self-employment income, TurboTax Online provides the necessary forms, calculations, and guidance to handle various tax scenarios.

Limitations of TurboTax Online include:

• No separate business returns for LLC, S, Estate, Corp, Trust, etc.

• Separate charges for each return (state, tax, etc.)

• Beneficial for those filing only one return

• Online stored data may not be accessible after October each year

• Limited inclusion of stock exchanges

• No feature to import financial data from QuickBooks or similar software

In comparison, TurboTax Desktop and CD versions have more limitations. They usually require installation on a specific device, limiting platform independence and access.

Moreover, these versions have lower storage capacity and lack the automatic backups and cloud-based security provided by TurboTax Online.

The worst part? You can only access TurboTax from the device you have installed it on. You can’t file a return from any other device.

And good luck if you have anything older than Windows 7; TurboTax supports Mac and Windows not older than Windows 7.

TurboTax Online or Desktop for Small Businesses?

TurboTax Online and TurboTax Desktop have their advantages and considerations for small businesses. But TurboTax Desktop seems a better option for small businesses for multiple reasons.

Winner: TurboTax Desktop

TurboTax Desktop offers flexibility in pricing, allowing you to pay when you file or if you want to print. You can also lock in a discounted price.

In contrast, the online version charges separate fees for federal and state returns, and the price is determined at the time of payment.

What makes TurboTax Desktop great for SMB accounting is that you can see and enter data directly into the forms. This can be beneficial if you have specific requirements or need to work with particular forms that may not be available in the online version.

Additionally, the Desktop version includes a What-If worksheet, which can help you explore different scenarios.

With TurboTax Desktop, your return is kept on your computer, ensuring that you always have access to it in the future. This can be helpful if you need to refer back to your return, make amendments, or provide copies.

On the other hand, the online version stores returns online, and after October each year, you might not have access to them. It’s recommended to save and download both the .tax and .pdf files each year for future reference.

Lastly, this version allows you to e-file five federal returns for free, and TurboTax Deluxe and other versions include one free state program download to prepare unlimited state returns.

Each other state return (including the first one) costs $19.99 to e-file, or you can print and mail it for free.

It’s important to carefully check the box when purchasing the CD version from a store, as some versions may not include the state return.

Overall, TurboTax Desktop provides more flexibility in pricing, access to forms, and storage options.

Where to Buy TurboTax at the Best Price?

First of all, where can I buy TurboTax, and how much does TurboTax cost? Let’s take a look at where to buy TurboTax & get the cheapest deal on prices right now:

• Intuit: The official TurboTax website, Intuit.com, offers TurboTax software for purchase and download.

• Costco: If you’re a Costco member, you can find TurboTax software at Costco warehouses or on their website.

• Staples: Staples is another retailer that typically carries TurboTax software. You can find it in their stores or on their website.

• Sam’s Club: Sam’s Club is known for offering various products at discounted prices, and they often carry TurboTax software.

• Target: Target is a popular retail chain where you can find in-store and online TurboTax software.

• Amazon: Amazon offers many TurboTax software versions, including physical CDs and digital downloads.

Note: Prices may vary depending on the version of TurboTax you choose, any ongoing promotions or discounts, and the specific retailer. Therefore, you should compare prices from different sources to find the best deal for your needs.

Is TurboTax Online Better Than Download or CD Versions? Key Takeaways

The choice between TurboTax Online, software download, or CD depends on your specific needs and preferences.

If you value convenience, accessibility from multiple devices, and automatic updates, TurboTax Online is a suitable choice.

The downloadable version is a good option if you prefer offline access, potentially faster performance, and don’t mind software installation.

The CD version is best for those who prefer a physical copy or have limited internet access but may require a CD-ROM drive and manual updates.

So, consider your circumstances, device compatibility, and features to determine which TurboTax option best aligns with your tax preparation needs.

FAQs

Can I Buy TurboTax Online?

You can buy TurboTax online. To be more specific, you can make the purchase directly on the official website. You can get the version that suits your needs for individual tax filing, self-employed individuals, small business owners, or other specific tax situations.
 

Is it Cheaper to Buy TurboTax or Do it Online?

TurboTax costs vary depending on the specific version and features you pick. TurboTax Online is often more cost-effective than buying the software download or CD version, as online options typically have different pricing tiers based on your needs, allowing you to select the best option.
 

Is TurboTax Safe to Use Online?

TurboTax has robust security measures in place to ensure the safety of your personal and financial information. They use encryption protocols and strict privacy policies to protect your data from unauthorized access. Overall, TurboTax is a trusted and widely used tax software, and they invest heavily in security.
 

Why is TurboTax Download More Expensive Than Disc?

One reason for the price difference could be the extra manufacturing and distribution costs associated with creating physical discs and packaging. Software downloads may also provide the advantage of immediate access to updates and new features, which can contribute to the higher cost.
 

Can You Share TurboTax?

Unfortunately, you can’t share TurboTax software licenses. They’re usually designed for individual use. Each license is intended for a single user and shouldn’t be shared with TurboTax multiple users. If multiple individuals in a household or business need to file their taxes using TurboTax, they should purchase separate licenses.
 

Do I Have to Buy TurboTax Every Year?

TurboTax is typically updated yearly to reflect changes in tax laws and regulations, improving performance. You don’t have to buy the software again if you bought it last year. However, you may need to upgrade to a new version if you have a chance in your tax situation or if you need to file a different type of return next year.
 

Does TurboTax Offer Products in Both Desktop and Online Versions With the Same License?

TurboTax licenses aren’t interchangeable between the two versions. They’re specific to either the desktop/download or online version. If you buy a TurboTax desktop/download version, the license is valid for that installation. Likewise, if you opt for TurboTax Online, your license pertains exclusively to the online platform.
 

Can I Download TurboTax if I Bought the CD?

You can download TurboTax even if you initially bought the CD version. TurboTax allows you to download the software from their website and install it on your computer. This can be beneficial if you prefer the convenience of accessing TurboTax without relying on the physical CD.
 

Can You Transfer TurboTax Online to Desktop?

Unfortunately, you can’t directly export TurboTax online to desktop. However, you can manually export your tax data from TurboTax Online and import it into the desktop version. TurboTax provides instructions and tools to export your tax return data, making the online and desktop transition possible.

You can follow the guidelines provided by TurboTax on how to transfer TurboTax online to desktop for a seamless migration of your tax information.