Mastering TurboTax: A Pro’s Guide to Filing Multiple Tax Returns

So, you’ve got more than one tax return to tackle this year. Welcome to the club! Filing multiple returns using TurboTax is a common scenario, whether you’re managing family finances, handling different business ventures, or navigating complex personal circumstances. The short answer is: you need a separate TurboTax account (and likely a separate product) for each individual or business entity that requires a tax return. You cannot file multiple individual returns under a single TurboTax account. Now, let’s dive into the specifics and unlock the secrets to streamlined multi-return filing.

Understanding the Landscape: Why Separate Accounts?

The core reason for needing separate accounts boils down to data security and IRS compliance. Tax returns contain sensitive personal and financial information. Mixing data from different individuals or entities within a single account would create a nightmare of privacy breaches and potential reporting errors. TurboTax is designed to keep each return isolated and secure, guaranteeing the accuracy and confidentiality the IRS demands.

Step-by-Step: Filing Multiple Individual Tax Returns

Let’s say you need to file returns for yourself, your spouse, and your dependent child who has a filing requirement. Here’s the process:

1. Create Individual Accounts: For each person needing to file a return, you must create a separate TurboTax account using a unique email address and password. TurboTax uses email addresses as the primary identifier for each user.
2. Choose the Right Product: Select the appropriate TurboTax product for each return. This will depend on the complexity of their tax situation. Someone with simple W-2 income might be fine with TurboTax Free Edition or Deluxe, while someone with investment income or self-employment income would need Premier or Self-Employed.
3. Enter Information Accurately: Carefully enter all relevant income, deductions, and credits for each individual within their respective account. Double-check everything!
4. Review and File: Review each return thoroughly for accuracy before e-filing. TurboTax guides you through this process, flagging potential errors or omissions. Once you’re confident, you can e-file directly to the IRS.
5. Track Filing Status: Use the IRS’s “Where’s My Refund?” tool to track the status of each individual refund.

Filing Business Returns (Schedule C, Partnership, S-Corp, Corporation)

The process for business returns is similar, but the stakes are often higher, and the product choices are more critical.

1. Select TurboTax Business: For business entities like Schedule C (sole proprietorship), partnerships, S-corporations, and C-corporations, you need to use TurboTax Business. This is a separate software product from the personal versions.
2. Unique Account for Each Business: Just like with individual returns, create a separate TurboTax account (and typically a separate product license) for each business entity. You cannot file multiple business returns within the same account.
3. Gather Business Records: Before you start, gather all your business’s financial records, including income statements, expense reports, balance sheets, and any relevant tax forms (e.g., 1099-MISC, 1099-NEC).
4. Choose the Correct Business Type: TurboTax Business will prompt you to select the correct business type (sole proprietorship, partnership, S-corp, C-corp). Choose carefully, as this dictates the forms and schedules you’ll need to complete.
5. Complete All Required Forms: TurboTax Business guides you through the process of completing all necessary forms, including Schedule C (for sole proprietorships), Form 1065 (for partnerships), Form 1120-S (for S-corporations), and Form 1120 (for C-corporations).
6. Review and File: Review the completed return thoroughly before e-filing. Pay close attention to deductions, credits, and any potential tax liabilities.

Important Considerations for Multiple Returns

• TurboTax Online vs. Desktop: The online version might be convenient, but the desktop version could be preferable if you need to access and manage multiple complex returns offline. It also often allows you to file more returns for a lower overall cost.
• State Returns: Remember that you’ll likely need to file state tax returns in addition to federal returns. TurboTax handles state returns seamlessly within each account.
• Family Accounts: While you can’t file multiple individual returns within a single account, you can use the same payment method for different accounts. You can also centralize your tax document gathering and organization for the whole family using secure online storage services.
• Tax Professional Assistance: If you’re dealing with particularly complex tax situations or multiple business returns, consider consulting a qualified tax professional. They can provide personalized advice and ensure you’re taking advantage of all available deductions and credits.

FAQs: Your Questions Answered

Here are some frequently asked questions to further clarify the process:

1. Can I use the same email address for multiple TurboTax accounts?

No. Each TurboTax account requires a unique email address. This is the primary identifier for each user and ensures the security and privacy of each tax return. You’ll need to create separate email addresses for each individual or business.

2. Can I file multiple years of tax returns in the same TurboTax account?

Yes, but only for that individual or business. Within your individual TurboTax account, you can file returns for multiple tax years. However, you still need separate accounts for separate entities.

3. Can I pay for multiple TurboTax accounts with one credit card?

Yes. You can use the same credit card to pay for multiple TurboTax accounts. The payment information is handled separately for each account.

4. What happens if I accidentally mix up information between different returns?

Immediately correct the error! If you discover that you’ve entered incorrect information on a return, amend the return as soon as possible. The IRS provides instructions for amending returns on their website. This is critical to avoid penalties.

5. Is TurboTax Business more expensive than TurboTax Personal?

Generally, yes. TurboTax Business is typically more expensive than the personal versions because it handles the complexities of business tax law.

6. Can I switch between TurboTax products if I need to upgrade?

Yes, in most cases, you can upgrade to a more comprehensive TurboTax product if your tax situation becomes more complex. TurboTax will transfer your data to the new product.

7. How long does TurboTax keep my tax return information?

TurboTax typically retains your tax return information for at least seven years, which aligns with the IRS’s record-keeping requirements.

8. Can I download a PDF of each tax return I file?

Yes. TurboTax allows you to download a PDF copy of each tax return you file. This is highly recommended for your records.

9. What if I made a mistake and already filed?

You can file an amended return using Form 1040-X. TurboTax supports filing amended returns.

10. Does TurboTax support filing state returns for multiple states?

Yes. TurboTax supports filing state tax returns for all states that require them.

11. Can I import data from previous years’ TurboTax returns?

Yes. TurboTax can import data from previous years’ TurboTax returns, which can save you time and effort.

12. How secure is my data on TurboTax?

TurboTax employs robust security measures to protect your data, including encryption, firewalls, and multi-factor authentication. However, it’s crucial to use a strong password and keep your account information secure.

Conclusion: Mastering the Art of Multi-Return Filing

Filing multiple tax returns with TurboTax may seem daunting, but with a clear understanding of the requirements and a step-by-step approach, you can navigate the process efficiently and accurately. Remember to create separate accounts for each individual or business, choose the right TurboTax product, and carefully review all information before filing. By following these guidelines and utilizing the resources available through TurboTax and the IRS, you can confidently conquer your tax obligations and achieve peace of mind.