While TurboTax remains a popular tax software option due to its user-friendly approach and comprehensive features, prospective users often face a crucial decision—whether to opt for TurboTax Online vs Desktop. TurboTax Online is ideal for business owners seeking full-service tax prep and filing, whereas TurboTax Desktop is optimal for small businesses that want to file their own partnership and S corporation (S-corp) tax returns.
We’ll compare these two versions head-to-head—exploring their customer service, helpful tools, ease of use, and unique features—to help you make an informed decision. Ultimately, the choice between TurboTax Desktop vs Online depends on personal preferences, whether you want access to tax experts, and the desired level of convenience and control.
TurboTax Desktop vs TurboTax Online Quick Comparison
When To Use
- TurboTax Online
- TurboTax Desktop
- An Alternative
- Small businesses seeking full-service tax preparation and filing: Regardless of whether you have a Schedule C business, a partnership, or a corporation, you have access to a tax professional who will prepare and file your taxes. This service includes two meetings via videoconference—before the process begins, and right before filing the tax return. TurboTax Desktop lacks full-service filing for both individual and business returns.
- Small business owners who often work remotely: TurboTax Online is accessible via the cloud, which means that you can access it from any device. It also offers a free mobile app for both iOS and Android users, which allows you to prepare and file your tax return. For more information, read our review of TurboTax.
- Self-employed individuals: Freelancers, gig workers, and sole proprietors with straightforward business income and expenses can use TurboTax Online’s self-employment features without the need for the advanced functionalities of desktop software.
- Corporations and partnerships that want to file their own tax returns: Unlike TurboTax Online, TurboTax Desktop allows for DIY filing for Forms 1120, 1120S, or 1065. TurboTax Online users needing to file these forms must use either its assisted filing (which is only available in 14 statesOnly available in California, Texas, Florida, Washington, Nevada, Wyoming, South Dakota, Alaska, Colorado, Georgia, North Carolina, Illinois, Arizona, and Ohio) or full-service filing.
- Self-employed business owners that need to e-file multiple tax returns: TurboTax Desktop lets you e-file up to five federal returns and one state return for free. Priced at $130, this is especially helpful for budget-minded businesses. Additionally, there is no limit as to the number of tax returns you can prepare.
- QuickBooks users seeking to export data to TurboTax: Only TurboTax Desktop can import data from QuickBooks—TurboTax Online does not. This feature makes it easier to ensure that your financial data is accurate across all platforms.
- Small businesses looking for inexpensive DIY online filing: H&R Block’s online DIY filing options are much less expensive than TurboTax in every category, including state filing fees. Read our for more information about its features and pricing.
- Businesses that want to file both their individual and business returns online: Of all the tax software we’ve reviewed, TaxAct is the only one that allows you to file both individual returns (Form 1040) and business returns (Forms 1120, 1120S, and 1065) online. Read our TaxAct review to determine if it’s a fit for your business.
- Freelancers who need free software to file an individual return with Schedule C: If you’re looking for a solution to filing both an individual and Schedule C return online for free, FreeTaxUSA is a great option. State returns are only $19.95. Read our review of FreeTaxUSA to learn more about its helpful tools.
Are you seeking additional small business tax solutions? Learn more about the pricing and features of leading software providers in our guide to the best small business tax software.
TurboTax Online vs Desktop: Pricing
- DIY Filing
- Assisted Filing
- Full Service Filing
Tax Return | TurboTax Online | TurboTax Desktop |
|---|---|---|
Form 1040 Only | Basic $0 Federal $0 per State | Basic $50 Federal $45 per State Includes 5 Federal e-files |
Form 1040 With Schedules 1 - 3 | Deluxe $69 Federal $59 per State | Basic $50 Federal $45 per State Includes 5 Federal e-files |
Form 1040 With Rental Property, Investments, or Cryptocurrency | Self-Employed $129 Federal $59 per State | Premier $115 Federal $45 per State Includes 5 Federal e-files plus 1 State return |
Form 1040 With Self-Employed Income | Self-Employed $129 Federal $59 per State | Home & Business $130 Federal $45 per State Includes 5 Federal e-files plus 1 State return |
Business Returns: Form 1120, 1120S, or 1065 | DIY filing unavailable for business returns | Business $190 Federal $55 per State |
Tax Return | TurboTax Online | TurboTax Desktop |
|---|---|---|
Form 1040 Only | Starting at $89 Federal $79 per State | Full Service filing unavailable |
Form 1040 With Schedules 1 - 3 | Starting at $219 Federal $79 per State | Full Service filing unavailable |
Form 1040 With Rental Property, Investments, or Cryptocurrency | Starting at $389 Federal $79 per State | Full Service filing unavailable |
Form 1040 With Self-Employed Income | Starting at $389 Federal $79 per State | Full Service filing unavailable |
Business Returns: Form 1120, 1120S, or 1065 | $1,749 Federal $64 per State | Full Service filing unavailable |
When it comes to pricing, there are a few differences between TurboTax Desktop vs Online. All TurboTax Online users, whether for business or individual returns, have access to full-service preparation and filing—which is unavailable for TurboTax Desktop users. For DIY filing, business returns can only be filed with TurboTax Desktop—as Forms 1065, 1120, and 1120S are unavailable with TurboTax Online.
However, both solutions offer DIY filing for taxpayers filing an individual tax return with a Schedule C. And if you’re a basic filer (Form 1040 only), you can file both a federal and state return for free. TurboTax Desktop DIY users can e-file up to five federal returns for free, business returns not included.
For assisted filing, TurboTax Desktop offers free product support by phone but no assistance with filing returns. Meanwhile, TurboTax Online offers live assistance for Form 1040 filers and Schedule C businesses, but the service is only available in 14 states for corporations and partnerships.
TurboTax Online vs Desktop: Live Assistance
TurboTax Online | TurboTax Desktop | |
|---|---|---|
Communication Method | Phone, live chat, or one-way videoconferencing | Free product support by phone |
Qualifications of Professionals | Certified public accountants (CPAs), enrolled agents (EAs), and tax specialists | N/A |
Tax Pro Assistance for Individual Returns | ✓ | ✕ |
Tax Pro Assistance for Business Returns | Limited states | ✕ |
Full-service Filing for Individual Returns | ✓ | ✕ |
Full-service Filing for Business Returns | ✓ | ✕ |
When it comes to live assistance, TurboTax Online excels in all areas. As compared to TurboTax Desktop, which limits communication to product support by phone, TurboTax Online allows you to communicate via phone, live chat, or one-way videoconferencing. Tax pro assistance is available for individual returns and in limited states for business returns, and it also offers full-service filing for both business and individual returns.
TurboTax Online | TurboTax Desktop | |
|---|---|---|
Import From QuickBooks | ✕ | ✓ |
Deduction Maximizer | ✓ | ✓ |
Audit Support | ✓ | ✓ |
Cryptocurrency Support | ✓ | ✓ |
Tax Calculator | ✓ | ✓ |
Import W-2s & 1099s | ✓ | ✓ |
Amended Returns | ✓ | ✓ |
Automatic Updates | ✓ | ✓ |
Real-time Collaboration | ✓ | ✕ |
Prior Year Return Filing | ✓ | ✕ |
TurboTax Online offers many useful features. However, only TurboTax Desktop offers the ability to import data from QuickBooks. Although because it is software that’s installed locally, it doesn’t allow for automatic updates or real-time collaboration. You also can’t file prior-year returns, as you must purchase software for the year you need to file.
TurboTax Online vs Desktop: Mobile App
TurboTax Online App | TurboTax Desktop App | |
|---|---|---|
Availability | iOS and Android | N/A |
Products Supported | Free | N/A |
Talk Live With Tax Specialist | ✓ | N/A |
E-File Return | ✓ | N/A |
Scan and Upload W-2 | ✓ | N/A |
IRS Refund Tracking | ✓ | N/A |
View/Print/Save Return as PDF | ✕ | N/A |
The TurboTax mobile app is only compatible with TurboTax Online, but you can only use it for the Free version, which is for simple returns and excludes rental property owners and Schedule C businesses. However, it allows you to prepare and e-file your return, track your IRS refund, and scan and upload your W-2. You can even communicate live with a tax specialist, who will assist you with any questions you may have.
TurboTax Online vs Desktop: Customer Service & Ease of Use
TurboTax Online | TurboTax Desktop | |
|---|---|---|
User Interface | Easy-to-use | Straightforward |
Support Channels | Phone, chat, and one-way video conferencing | N/A |
Expert Help Offered | ✓ | N/A |
TurboTax Online is known for its user-friendly interface and step-by-step guidance. Because it’s entirely cloud-based, there’s no need to download or install any software or worry about installing updates. Users can access their tax returns from any device with an internet connection and can switch between devices without losing their progress.
The platform offers a range of customer support options, including live chat, phone support, videoconferencing, and an extensive knowledge base. Users can access help and support resources directly within the software and also opt for full-service filing, in which you’re paired with a tax professional who will work with you to prepare and file your return. In contrast, TurboTax Desktop doesn’t offer tax filing assistance, with the exception of free product support by phone.
TurboTax Online input screen
Meanwhile, TurboTax Desktop generally is considered to have a steeper learning curve compared to TurboTax Online. It requires installation on a specific device, limiting the ability to access tax returns from multiple devices—unless the software is transferred. The user interface (UI) is still intuitive but some users may find it less convenient than TurboTax Online.
TurboTax Desktop doesn’t offer any type of support other than free product support by phone. Therefore, it is best to opt for TurboTax Online if you feel that you may require any kind of tax filing assistance.
TurboTax Desktop input screen
TurboTax Desktop vs Online: User Reviews
Third-party user review sites rarely distinguish between TurboTax Online vs. Desktop. We’ve relied on the user reviews reported directly by Intuit on the TurboTax website as they separate the reviews by product.
TurboTax Desktop received 4.1 out of 5 stars based on 25,450 reviews1. Most positive reviews raved about how easy TurboTax Desktop is to use. Negative reviews cited technical issues with installing the program and subsequent crashes. Having nothing to install with TurboTax Online is definitely a big advantage. Other negative reviewers commented that it took far too long to complete their simple return because of all the irrelevant questions they had to answer.
TurboTax Online received 4.5 out of 5 stars based on 144,326 reviews2, which is higher than the reviews for the desktop product. Similar to Desktop, TurboTax Online received many positive reviews for ease-of-use. Negative reviewers mostly thought the software was expensive and that they had unexpected fees added. Some of these reviewers might be referring to being upgraded to the next plan when needing to report certain items on their tax returns. This can be frustrating, because TurboTax won’t let you return to the lower level plan — even if a mistake caused the upgrade.
Frequently Asked Questions (FAQs)
Yes, TurboTax Online is cloud-based, allowing you to access your tax returns from any device with an internet connection. It also offers a free mobile iOS and Android app that gives you access to your tax return.
TurboTax Online automatically updates to the latest version, so you don’t need to manually download updates. In contrast, TurboTax Desktop gives you control over updating the software and allows you to choose whether to install updates or not.
No, you can’t switch between TurboTax Online and Desktop once you have started your tax return. It’s important to choose the version that suits your needs before you begin the process.
Yes, TurboTax Audit Defense is available as an optional service for both TurboTax Online and Desktop. It provides professional representation in case of an audit.
Bottom Line
Both TurboTax Online and Desktop offer powerful tax preparation solutions, catering to different user preferences and needs. TurboTax Online provides the convenience of cloud-based access, full-service filing, and automatic updates. Meanwhile, TurboTax Desktop offers offline functionality, control over software updates, and a one-time purchase option.
User review references:
1Intuit | TurboTax Desktop
2Intuit | TurboTax Online
