Turbotax import from online to desktop

Before you pat yourself on the back and relax, you may want to check and see if you traded any cash-settled index options or futures (Section 1256 Contracts). In other words, if you see figures listed in the Regulated Futures Contracts & Section 1256 Options section in the Tax Reporting Statement (generally listed on page 1 of your Consolidated 1099) or received a Substitute Form 1099 Statement from trading futures, then you have one more step.

If you did not trade any Section 1256 Contracts, then you may disregard the section below. To read more about Section 1256 Contracts, then please click here.

Now, it’s time to enter the profit/loss from Section 1256 products. Return to the Investment Income section. You can enter your profit/loss by clicking the Start button next to Contracts and Straddles.

Then, click Yes to proceed.

Next, check any elections that apply to you. Otherwise, click Continue to move on. Of course, we always suggest consulting a tax professional if you have questions about whether an election applies to you. 

We’re almost there. Now check Section 1256 contracts marked to market.

Next, you should be on the How to Report Your Transactions page. Select I’ll report the totals from each broker or account.

Before you move on to the next section of TurboTax, you will want to dig up your Consolidated 1099. Namely, you'll want to go to the Tax Reporting Statement page (generally page 1), where you can locate the Aggregate profit or (loss) on contracts from trading Section 1256 Contracts. Below, we’ve illustrated where you can find this.

In this example, the Consolidated 1099 booked a $64.68 profit. You’re now ready to enter this number into the “Section 1256 Contracts” section of TurboTax. Here, you will need to enter:

• Brokers: tastyworks
• Account Description: You can write whatever you want here, as it's solely used as a reference.
• (Loss): if there was a loss, then enter the amount here
• Gain: $64.68 (or $542.30 + $64.68, which is $606.98, if you traded futures as well)

Now you’re ready to enter the total profit or loss of all your trading of Section 1256 Contracts. You will either have a number in (Loss) or Gain, and not in both. After entering, click Continue.

Lastly, TurboTax will round your gain/loss to the nearest dollar (Section 1256 options + futures trading). If everything looks correct, then click ‘DONE..’ You will return to the Income Summary page.

Take a deep breath. You’re all set! Now, go ahead and pat yourself on the back.

Importing Section 1256 Contracts: Cash-settled Index Options and Futures

Among the USA’s leading tax preparation software programs, TurboTax is consistently emerging with new features and updates every year. You can use the software to file your state or federal taxes from the comfort of your home. While you can visit TurboTax’s official site and file your taxes directly through the website, you can download or switch to the desktop version to file your taxes on a stand-alone computer. Read on to explore how you can import TurboTax online to desktop and what its advantages are.

Differences Between TurboTax Online and Desktop Version

The online version of TurboTax is recommended for filing a single return at a time with separate charges for federal and state taxes. To start with the tax filing process, you don’t have to pay initially; however, you need to pay while filing or printing the filed taxes. To avail an early discounted price, you may have to pay for it. Moreover, you cannot look into the forms until your payment is done for printout. The TurboTax online version doesn’t have the same forms and hence you might need to use a higher version. Also, the returns that you file online, are stored online and you don’t get access to these files the next year. To avoid this, you can save and download both the .tax and .pdf files each year to your computer or a flash drive.

The TurboTax desktop version, also known as the CD/Download version allows you to file unlimited tax returns. If you import TurboTax online to desktop version, you can file five federal taxes for free and one free state tax return. Moreover, you can have a look at the actual forms on the desktop version of TurboTax. The desktop version has a “What-If” worksheet that allows you to keep your tax return data stored on your computer. Hence, you will have around-the-clock access to these files.

Tips To Import TurboTax Online To Desktop

Now that you have understood the difference between the online and desktop version of Turbotax, have a look at the below-mentioned pointers for changing TurboTax online to TurboTax desktop/software version:

1. Log into your TurboTax account and save the online tax returns as a tax data file.
2. Log out of your TurboTax account.
3. Now visit the official site of Turbotax and download the software.
4. Open the TurboTax setup file and install the program on your computer.
5. In case you haven’t purchased the software, select the product you need to file your tax returns.
6. After installing the software, choose the “File” menu and click on the “Open Tax Return” option.
7. Navigate to the location where you saved your .tax file.
8. Select the .tax file and click on Open.
9. In case you encounter an error while performing this step, delete the tax data file and repeat the steps from the beginning.

While filing returns for state, ensure that you have installed the corresponding state program. This will eliminate the risk of encountering TurboTax error 539 or TurboTax error 42015.

Advantages of TurboTax Desktop Version

One of the primary advantages to import TurboTax online to desktop versions is that it allows you to store your tax return data locally on your computer. However, if you ignore the usage of high-security antivirus or firewall programs on your computer, the risk of data theft or system hack gets increased.

Moreover, the desktop version of TurboTax automatically checks for updates or prompts you to check for it on frequent intervals. With the desktop version of Turbotax in place, you can save the tax file data in a USB flash drive or an external hard disk, allowing you to use the data for future use.

While TurboTax has both the online as well as the desktop/software version, you can always make an informed decision on choosing the one that suits your requirement. Follow the series of steps to convert the online version to desktop and file your state or federal taxes from the comfort of your home on a stand-alone computer.