Taxpayer Characteristics

• TurboTax Deluxe focuses on individuals and their families and the tax help it provides is based on changes in the lives of everyone involved. The phrase "life-changing event" is very common in other personal financial planning aspects of your life, such as when you enroll for insurance coverage. The birth of a child or death of family member can also affect your tax liabilities. Other events might include being displaced by a natural disaster or being the victim of property theft. The importance of these circumstances, good or bad, might overwhelm you or slip your mind when you go to file taxes and you could miss out on valuable tax savings. TurboTax Deluxe presents these events to you as questions or dialogue as you navigate through the tax filing program, like so: "Did you get marry in 2010?"
  
  

The Math

• Before TurboTax can help determine how much you owe or will receive as a refund from the IRS, the software has to first arrive at your taxable income. "Deductions" help reduce that taxable income. If you owe money to the IRS, "credits" can help take dollars off your tax bill as well. TurboTax Deluxe is capable of finding over 350 deduction and credits which might apply to you and your family.
  
  

Comparison to TurboTax Basic

• TurboTax Basic costs less than the Deluxe version and that's because it includes considerably less in the way of tax help. As mentioned previously, credits and deductions are your key to reducing your tax bill, and this help is not offered in the Basic version. The dialog that makes the software so user-friendly as far as probing you for money-saving, life-changing events is absent as well. Another omission is the "Audit Risk Meter," which checks your final prepared tax returns for obvious issues that will cause the IRS to seek an audit of your tax account.
  
  

Comparison to TurboTax Premier

• TurboTax Premier costs more than the Deluxe version, but that's because it provides premium services and features. You might think of the Deluxe as your personal tax accountant, while the Premier version is that and your personal financial adviser. It provides guidance for your investments. If you contribute to an IRA, Premier will find even more deductions beyond the hundreds offered in Deluxe. Premier also gives advice on increasing your 401(k) contributions. Also, if you own rental property, then you might have additional deductions to help reduce your tax bill.
  
  

Comparison to TurboTax Home & Business

• If you are self-employed or run a small operation, Deluxe might take care of most of your personal needs, but it might barely mention or completely omit your business concerns. The TurboTax Home & Business version might better suit your needs because your personal and business tax liabilities are two completely different beasts. A life-changing event, such as a birth or death, has almost nothing to do with a sole proprietorship or a limited liability company. However, having a few employees or subcontractors could greatly influence your tax savings or liabilities, and the Home & Business version can provide this vital support. If you have office space and equipment, there are deductions, expenses and write-offs that can significantly affect your tax bill. The Deluxe version does not flesh out these subjects in great detail and you could end up missing those tax savings.