Can I Upgrade Turbotax Premier To Business? | Smart Tax Moves

Understanding TurboTax Product Lines and Their Differences

TurboTax offers a range of products designed to cater to different tax situations. Among these, TurboTax Premier and TurboTax Business stand out for users with more complex tax needs, but they serve distinct purposes. TurboTax Premier is tailored primarily for individuals with investments, rental properties, or self-employment income reported on Schedule C. Conversely, TurboTax Business is designed specifically for small business owners who need to file business tax returns such as partnerships (Form 1065), corporations (Form 1120), and S corporations (Form 1120S).

Because these two products serve different filing needs, they are structured as separate software packages. This separation means that users cannot simply upgrade from Premier to Business within the same program. Instead, if you require the features of TurboTax Business after using Premier, you must purchase the Business edition independently.

Why Can’t You Upgrade Directly from Premier to Business?

TurboTax’s product architecture is built around the type of tax return being filed rather than a tiered upgrade system. Premier focuses on individual returns with investment and rental income complexities, while Business handles the intricacies of entity-level filings. The software codebases and forms supported differ significantly between these editions.

This distinction impacts how TurboTax manages licensing and product delivery:

• Separate Licensing: Each product requires a distinct license key tied to its specific features.
• Different Tax Forms: Business supports forms like 1120 or 1065, which Premier does not include.
• User Interface Variations: The workflow and questions asked vary greatly between individual and business returns.

Because of these fundamental differences, TurboTax does not offer an in-app or online upgrade path from Premier to Business. Users must buy the appropriate package for their filing needs.

How to Transition from TurboTax Premier to TurboTax Business

If you start your tax preparation using TurboTax Premier but realize you need to file a business return that requires TurboTax Business, here’s what you should do:

• Purchase TurboTax Business: Visit the official Intuit website or authorized retailers to buy the Business edition.
• Download and Install: Once purchased, download and install the new software separately from your existing Premier installation.
• Re-enter or Import Data: Unfortunately, there is no direct import feature for business data from Premier because Premier does not support business entity returns. You will need to manually enter your business information into TurboTax Business.
• File Separately: Use each product for its intended purpose—Premier for your personal return and Business for your company’s tax filings.

This process might seem tedious if you hoped for a seamless upgrade experience. However, it ensures accuracy by keeping individual and business filings properly segmented.

The Cost Implications of Buying Both Editions

Purchasing both TurboTax Premier and TurboTax Business can increase your overall tax preparation costs. Each product comes with its own price point reflecting the complexity it handles.

Here’s a general pricing comparison (subject to change based on promotions or updates):

TurboTax Edition	Main Purpose	Approximate Price (USD)
TurboTax Deluxe	Basic Individual Returns	$60 – $80
TurboTax Premier	Investments & Rental Properties	$90 – $120
TurboTax Self-Employed	Sole Proprietors & Freelancers	$120 – $160
TurboTax Business	S Corporations, Partnerships & Corporations	$170 – $200+

Since TurboTax Business is priced higher due to its advanced features geared toward complex entity returns, budgeting accordingly is essential if you plan on using both products.

Is It Worth Buying Both?

For taxpayers who have both personal investment income and operate a small corporation or partnership, purchasing both editions may be necessary. However, if you only have self-employment income reported on Schedule C without forming an entity like an LLC taxed as a corporation or partnership, TurboTax Self-Employed might cover all your needs without requiring the full Business package.

Weighing your filing requirements carefully before purchasing can save money.

The Role of Online vs Desktop Versions in Upgrading Options

TurboTax offers both online (web-based) versions and desktop downloads. The inability to upgrade directly from Premier to Business applies across both platforms but manifests differently:

• Online Version: You select which product you want when starting your return; switching between products mid-return typically means starting over.
• Desktop Version: You install separate applications for each product; no in-app upgrade path exists between them.

Some users mistakenly believe that upgrading within their existing account or software is possible because other software suites offer tiered upgrades. However, Intuit treats these as distinct products due to their fundamentally different use cases.

Migrating Data Between Products: What’s Possible?

Data migration between editions is limited:

• You can import W-2s, investment statements, and other personal income data into Premier easily.
• Turbotax does not support importing personal return data into the Business edition because they handle different tax forms entirely.
• If you have bookkeeping files in QuickBooks or similar software linked with your business taxes, importing those into TurboTax Business may be feasible depending on versions used.
• If you started entering personal information in Premier but need business forms included in a separate filing via Business edition, manual data entry becomes necessary.
• This separation helps ensure accuracy but adds complexity when managing multiple filings across products.

The Benefits of Using Separate Products Instead of One Unified Solution

While it might seem inconvenient at first glance that you cannot upgrade directly from Premier to Business within one app, there are benefits:

• Simplified User Experience: Each product focuses exclusively on its target user base without cluttering interfaces with irrelevant questions or forms.
• Error Reduction: Mixing individual and entity returns can lead to mistakes; separating them enforces correct filing procedures.
• Easier Support & Updates: Intuit can tailor updates specifically for investment-focused returns versus corporate filings without overlap issues.

This design philosophy aligns with IRS requirements where personal returns (1040) are distinct from business entity returns (1065/1120).

The Alternatives: When You Might Not Need TurboTax Business at All

Many filers wonder if they truly need the full-blown TurboTax Business edition or if another version will suffice. Here are some scenarios:

• If you’re self-employed as a sole proprietor reporting income on Schedule C attached to Form 1040 — then TurboTax Self-Employed covers this comprehensively without needing the separate Business package.
• If your “business” is just rental property income reported on Schedule E along with investments — then TurboTax Premier suffices since no separate business return is required.
• If you’re part of a partnership or corporation required by law to file separate entity-level tax returns — then only the TurboTax Business edition fits this need precisely.

Understanding these distinctions helps avoid unnecessary purchases.

A Quick Overview Table: Which Product Fits Your Filing Needs?

Your Situation	Suitable Product(s)	Main Tax Forms Covered
You have W-2 income plus investments/rental properties only	TurboTax Premier	1040 + Schedule D + Schedule E
You’re self-employed sole proprietor/freelancer (no corporation formed)	TurboTax Self-Employed (or Premier depending on complexity)	1040 + Schedule C + SE Tax Forms
You own an LLC taxed as a corporation/partnership (need separate business return)	TurboTax Business*	S Corp (1120S), C Corp (1120), Partnership (1065)

*Note: If unsure about entity classification, consult a tax professional before purchasing.

Frequently Asked Questions

Can I upgrade TurboTax Premier to Business directly?

No, you cannot directly upgrade TurboTax Premier to TurboTax Business. They are separate products with distinct licenses and features, so an in-app or online upgrade path does not exist.

Why is there no upgrade from TurboTax Premier to Business?

TurboTax Premier and Business serve different tax filing needs and use different software codebases. Premier is for individual returns with investments, while Business handles entity-level filings, requiring separate licenses and forms.

What should I do if I need TurboTax Business after using Premier?

If you realize you need TurboTax Business after starting with Premier, you must purchase the Business edition separately from Intuit or authorized retailers. The two products cannot be combined or upgraded within the same program.

Are the tax forms supported by TurboTax Premier and Business different?

Yes, TurboTax Premier supports individual tax forms like Schedule C, while TurboTax Business supports business returns such as Form 1065, 1120, and 1120S. This difference is why they are sold as separate products.

Is the user interface the same for TurboTax Premier and Business?

No, the user interfaces differ significantly because they cater to different types of tax returns. The workflow and questions asked in TurboTax Business focus on business filings, unlike the individual return focus of Premier.