TurboTax, 2 States?

Question

I live in New Jersey, but work in New York so I have to file two state returns. How is this done with Turbotax? Also, does anyone have experience with Turbotax and is it recommended?

Answer 1

Sure, Turbo Tax or Tax cut will handle this. You will have to buy the state programs. (You can download each state for a separate charge) After you do the Fed return in the Turbo program, the information will transfer automatically to the state programs. Be careful to put in all the information correctly such as amounts of state income tax withheld (from your W-2) what dates you worked in the NY, etc. Just follow the questions and you should get accurate returns for both states. Before you file either state, make sure that the total of the taxable incomes from the two states doesn't exceed the total of your Fed taxable income. If it does, it could mean that you have reported too much to one or both states.

Answer 2

If you bought the premium version that includes state taxes you only get one state. You'll have to buy the additional state software from Turbo Tax. There's an option within Turbo Tax to do that.

I use Tax Cut mostly because I don't like the user license that comes with TT. All of the major players are similar, TurboTax, Tax Cut & Tax Act.

Turbo Tax is felt by some to have a slight advantage with the user interface. From past experience, Tax Cut is easier to override if you know your tax law and don't like the way that the program treats something.

Answer 3

It depends on whether you are doing this online or you purchased the Turbo Tax software. Generally, the e-filing/preparation fee charged by Turbo Tax covers only the federal return and one state. To do a second state, you have to pay extra. I've never done multi-state returns in Turbo Tax (I use professional tax software called RIA Go System for that), so I don't know how seamless it is, or how well/easy Turbo Tax handles the state tax credit.