What is the main difference between TurboTax Free Edition and TurboTax Deluxe?

The main difference between TurboTax Free Edition and TurboTax Deluxe lies in the complexity of tax situations they are designed to handle. The Free Edition is geared towards individuals with simple tax returns, making it an excellent option for those who have straightforward tax situations, such as single filers or those without any itemized deductions.

On the other hand, Deluxe is tailored for taxpayers who have more complex financial situations. It includes additional features that cater to those who may need to itemize their deductions, such as mortgage interest, medical expenses, and charitable contributions. This enhanced functionality makes Deluxe a more versatile choice for individuals who may need to claim various tax credits and deductions beyond what is covered in the Free Edition.

The other options presented do not accurately reflect the distinctions between the two versions, as Deluxe is not limited solely to business owners or individuals with children, nor is it accurate to say that the Free Edition includes state filing while Deluxe does not. Understanding this primary distinction is essential for selecting the appropriate version of TurboTax based on individual tax needs.