Taxes (new TurboTax system requirements)

As a longtime user of TurboTax, I got an email from Intuit a couple months ago or so. It described the need for an account.

I haven't installed the software yet on my Windows 11 64-bit PC as I wait until I have all my forms and that gives TT some time for software updates to be issued.

I expect I'll be busy the first week of February.

Switching to 64 bit is only possible through a clean install, which would remove all of your applications. It is also only recommended that your device has a minimum of 4GBs of RAM. One consideration would be to purchase a new hard drive or SSD, then do a clean install, then use a migration tool to move things from the old drive to the new drive. I’m not convinced that would necessarily work, but it would be my first approach.

Undisclosed Gotchas like that are really annoying. Most people do have 64-bit systems now, though, I'm pretty sure. If you really don't want to go through the whole hassle of upgrading your PC to 64-bit Windows--and it will be a pain, for sure, because of the need to reinstall everything from scratch--and if it isn't time for a new PC anyway, you can of course find another way to file, including TurboTax online, though this will present its own hassles as you migrate your way of entering data.

Do you have a trusted friend and neighbor with a PC you could borrow to do your return? You would install TurboTax on that PC but could use a portable external hard drive, or Flash drive, to store your return's file on, so you wouldn't have to be sharing your private financial data with the owner by storing it on the PC's internal hard drive.

If you live in the right state, the IRS is piloting a Direct File program, where people will fill out returns online and file for free. (Only residents of 12 states are eligible this year, and there are other limitations, such as certain credits and deductions which can't be taken, but I don't think it's limited by income level, as many free-filing options have been in the past):
https://www.irs.gov/about-irs/strategic-plan/direct-file
I'm not sure I'd want to be a first-year volunteer for this option. They will need some time to iron the bugs out, and if they write software the way they write tax form instructions, it could be a slog-and-a-half. You'd also have to figure out what to do about your state tax return, if you've used TurboTax for that in the past. Many states offer a way to fill out a state return online.

You can get your money back for 2023 TurboTax. They have a 60-day satisfaction guarantee: "If you're not completely satisfied with TurboTax Desktop, go to refundrequest.intuit.com within 60 days of purchase and follow the process listed to submit a refund request. You must return this product using your license code or order number and dated receipt."
https://turbotax.intuit.com/corp/cd-download/guarantees/

In my opinion, Intuit is requiring a TurboTax account to prevent multiple unrelated people from using the same PC install and license.

Nowhere do their FAQs say this is the reason.

I had difficulty creating an account because an old account existed and I didn't have the login info.

My 10 year old PC is 64 bit!

They didn't say why they're requiring account login starting this year, but Intuit still allows one copy of the software to be installed on up to five devices, which is very generous. They say the IRS also limits free federal e-files from one copy of the Deluxe desktop software to five returns. Intuit doesn't want people using home TurboTax profesionally, so they're happy with that restriction, I'm sure. You have to pay to e-file any state return with Intuit and most competitors.

By requiring an account login to install, Intuit might be clamping down on the practice of a few people installing the software on one device, preparing and filing one return early in the season, then reselling the software on eBay at half price, disclosing what they've done. Maybe if a user tries to login to a different account with the same copy of previously installed software, it blocks them--I don't know.

Microsoft says about 80% of people are using Windows 10 or 11. But the other 20% is made up of users running Vista, XP, Windows 7 and Windows, all of which will also get you on TurboTax 2023.

My main board won't allow me to upgrade. I did 32 bit because I had the disc when I had a guy build it for me about 10 years ago. Other that TTax now I have no reason to upgrade. I need to attempt to do an online or possibly HR Block. HR block is showing minimum requirements back to version 8.1.

Use rufus to create a usb flash drive using 64bit win10/11 iso. If you install 11, it will ask if you want to disable the hardware requirement options (cpu, tpm, etc...). Select yes.

I've got win11 installed and running on a 4th gen core cpu, circa 2014 - i5 4590 to be exact. It's used for htpc purposes with a nvidia 1050 card for hardware decoding. Does 4K just fine. 64 bit of course (8gb of ram on board).

I have used TT for a long long time. About 10 years ago (maybe 15) I started using Web TT so I don't have to worry about system requirements for a piece of software like TT. No regrets, no issues and it's always up to date, so for me it's a no brainier.

two decades. Don't believe I have an account. I do have a 64 bit Win 11 Pro, we'll see.

I am attempting TT on the web now. What I have heard through research in some discussion groups is you don't know the price till you are done. I have to try though because I am not at a point of wiping what I have to start over.

@pwohlrab: Can online TurboTax import your desktop TurboTax file from last year, so you don't have to reenter everything? I've never used the online version.

If it's desktop TurboTax you'll be using, yes, the info above is correct: you will have to log into an existing Intuit account or create a new account with Intuit this year before they will let you install 2023 desktop TurboTax.

Creating a new Intuit account is not a big deal. You just enter an email address and secure password, and maybe a mailing address as well, and if I recall correctly, they immediately send something to the email address to activate, and you can install.

Some people object to setting up an account with Intuit, which was optional in previous years.

My guess is that TT will charge their list price for an online return so the question becomes whether or not you need to upgrade to Deluxe, Premier, or above. On the other hand, if you know which version you need and you have a computer able to use TT with the 64-bit requirement now, then you can Wishlist TT on Amazon every November or so and check the wishlist daily for a price reduction. That's what I've done these past few years to minimize my overall cost. Either way, I'm sure the e-filing of a state return will be another fee.

Buying clubs like BJ’s and Costco are currently offering discounts. BJ’s has Deluxe @ $45, Premier @ $65 and H&B @ $76. Keep in mind as well that the cost of tax software is deductible if you itemize deductions.

I've been using TT Premier for over 10 years. In the past, a TT account was required only if you used e-file for your state return, or purchased the audit "insurance".

Last year, for the first time, an account was required to install the TT Premier software for the 2022 tax year.

I've been E-Filing my state return every year, and created a TT account 10 years ago. It was simple, cost nothing, and did not result in a flood of spam emails. No big deal.

I always file my state taxes through the states website. It’s simple and doesn’t cost anything. Back in the day when I almost always got a refund, I would have the money in my bank account within a week.

I'm no tax expert but I believe that since 2018, tax preparation costs are only partially deductible by business owners, and for ordinary working or retired folks, not deductible at all, due to the Tax Cuts and Jobs Act (TCJA) passed in 2017.

I know that for at least the past two years, I added the cost of my TT as a Tax Prep deduction but TT zeroed it out for the final total deductions.

Am I right or misreading the rules?

I've had no issues with personal tax but take note of the condition I mentioned "...deductible if you itemize deductions.". According to the H & R Block website there is a second condition which I might have met "Your deductions total more than 2% of your adjusted gross income (AGI)." See https://www.hrblock.com/tax-center/filing/adjustments-and-de....

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Yeah, careful, here. If you are using tax software, it will tell you whether you are entitled to a deduction for this. That H&R Block page liked just above may not be accurate or up-to-date. I'm seeing conflicting information on this online, and I'm not a tax expert, either, so I'll defer to an accountant. But here's what I do see:

Up until 2018, the rule was clear: businesses could deduct tax prep expenses, including software, but individual and joint filers could not, unless they met two conditions:

1. They used Schedule A to itemize deductible expenses. (The great majority of tax filers no longer have qualified deductible expenses high enough for itemized deductions to make sense. They're better off with the standard deduction, in which case, they can't deduct tax prep costs.)

2. Their deductible **miscellaneous** expenses, including tax prep, had to exceed 2% of their adjusted gross income. H&R Block left the "miscellaneous deductions" detail out of the webpage above. Most people with itemized deductible expenses don't meet this condition. That's a pretty high income threshold to meet for miscellaneous deductible expenses.
https://www.mightytaxes.com/are-tax-preparation-software-fee...

And even if you do have enough deductions to itemize tax prep, it's not deductible for 2023 if you buy the software in 2024; it would be deductible on the 2024 return if you met the conditions then.

But I'm also seeing that the 2% rule was suspended for returns in 2018-2025. Several webpages say this, including this one:
https://amynorthardcpa.com/2-percent-tax-rule/

But I can't tell you what that means. Does it mean ignore condition #2 above and just meet condition #1, and you can deduct tax prep expenses for the tax year you paid them? Maybe. I'm not sure.

Tax software will know whether to include this on Schedule A or not. Condition #2 may be what zeroed out a deduction for tax software on CraigW's return.

And of course, it's important to note, this discussion is over a small amount of money, because it's about a taxable income deduction, not a tax credit. Say you pay $80 for all your federal and state tax software and filing costs. You don't get an $80 tax credit if you itemize this deduction. You get a small portion of it back... maybe $16 off your taxes, depending on your income and other deductions.

Bottom line: I don't know if it's even worth worrying about, unless you pay a tax accountant big bucks to do your return, in which case, the tax accountant should know how to handle any deduction.

Are you sure that TT is asking for an account only if you have the Online version. I always get the downloadable version and have never had to create an account.

They always ask me to register, which is something that I do. In the past, I let my daughter load it on her computer, and never an issue.

Maybe they're doing something different in the US, but I can't see why.

I even tested and tried to sign is with my email address and they said no account.

I have used TT since DOS version days prior to Windows!
About two years ago I had to buy a new laptop to support the new higher system requirements for that year's TT. The main issue was that TT Premier would no longer work with any OS version prior to Windows 10 - and I was not able to upgrade my PC because I had several programs I used a lot which depended on Windows 7 Pro. The new laptop was 64 bit and had Windows 10 on it with a free upgrade to Windows 11, since that release was imminent. I use it more and more for other programs now that need the newer OS. I had signed up for an Intuit account prior to that because that made it easier to buy the state efile. BTW, over the last several years, I've taken to buying TT at Costco because it was the lowest price I could find, when they have a discount coupon for it in January. Starting last year, and true again this year, it also comes with a $10 offer off of purchases on intuit.com including the state efile, which has reduced the price I pay for that from $25 to $15.

Turbo Tax for Canadian filers is an entirely different piece of software from the US version, and yes, licensing language and corporate policies can vary for "TurboTax" in different countries. And didn't Online TurboTax always require an Intuit account? I don't know, because I've only used Desktop TurboTax, but I would guess it did.

Here was the email sent out to 2022 Desktop Intuit customers in the USA in the fall of 2023:

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"Hi there,

We’re reaching out to our TurboTax Desktop customers to share an important change to how you’ll install and activate your software this upcoming 2023 tax season.

To install and activate TurboTax 2023 on your computer, you’ll be prompted to sign in to your existing Intuit Account (or create an account if you don’t already have one) before entering your license code. The software won't install unless you sign in to your Intuit Account online. Importantly, your product license code can only be associated with one Intuit Account.

Your license code will then be stored in your Intuit Account, should you need to install the software again.

If you forgot your user ID or password, or need additional assistance logging in to your Intuit Account, this article will provide you with helpful steps.

For more information on product installation and activation, go to TurboTaxHelp.com.

Thanks for being part of the TurboTax family.

Warm regards,

The TurboTax Team"

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This email does confirm that registering 2023 Desktop TurboTax under one account and then reselling it on eBay or anywhere else, or giving it away, to a new user will not work, because Intuit will only allow one Intuit account to be associated with one registration key that comes with each copy of Desktop Turbo Tax 2023, whether downloaded or bought on disk. This may be at least one reason they've changing their US policy, though I'd be surprised if they were losing a lot of money without the new policy.

See https://thehill.com/business/4422208-ftc-turbotax-intuit-fre...

amazon sells Deluxe with State for $44.99, and included in that price is a $10 amazon gift card. Both download and disc. I've seen the same $44.99 price for Deluxe plus state at Costco.

I have been filing online for eight years with no problems. Only problem this year I kept trying to use the wrong password, had to make a cll but they fixed my problem right away.