How to Undo TurboTax Premium

Clicked the button to upgrade to TurboTax Premium and are now feeling a knot in your stomach? It’s a common misstep, often triggered by entering a single form you didn't realize would bump you into a paid tier. The good news is you are not permanently stuck. This guide will walk you through exactly how to downgrade or clear your return so you can restart in the right version for your tax situation. We will cover the official "Clear & Start Over" method, explore why it might not always be available, and provide a practical workaround you can try before resorting to starting from scratch.

When Is Downgrading the Right Move?

Before diving into the "how," let's quickly confirm "why." Understanding your reason for wanting to downgrade is key, as it can influence the best solution. Most people find themselves needing to undo a TurboTax Premium upgrade for one of three reasons:

• You Don’t Need the Features: TurboTax Premium is specifically designed for people with investment or rental property income. This includes reporting stock sales (Schedule D), cryptocurrency transactions, and income from rental properties (Schedule E). If your tax situation is simpler—say, you have W-2 income and maybe some student loan interest—you were likely guided here by mistake and don't require these specialized forms.
• It Was an Accidental Upgrade: The software is designed to automatically upgrade you the moment you enter information that requires a higher-tier version. For example, importing a Form 1099-B from your brokerage account immediately triggers the need for Premium. You might later realize the information was incorrect, or that you had minimal capital gains that do not significantly alter your tax liability, making the upgrade feel unnecessary.
• You’re on a Budget: Let's be honest, tax software can be expensive. You may have simply clicked the upgrade prompt to explore the features, only to realize the cost is more than you’d like to pay. Choosing to downgrade to TurboTax Deluxe or TurboTax Free Edition can save you a significant amount of money if you don't need the advanced capabilities.

The Official Method: Using the "Clear & Start Over" Tool

For most users who haven't yet paid or filed, the simplest way to undo an upgrade is by using TurboTax's built-in reset function. The "Clear & Start Over" feature does exactly what its name suggests: it completely erases all the information you have entered for your current tax return, allowing you to begin again from a clean slate. This gives you a fresh opportunity to select the right version.

Heads up: This action is irreversible. Once you clear your return, all entered data is gone for good. If you've spent hours inputting information, you might want to first download a PDF copy for your records by going to Tax Tools > Print Center > Print, save, or preview this year's return.

Here are the step-by-step instructions to clear your return:

1. Sign In and Navigate: Log into your TurboTax Online account. Once you're inside your tax return, look for the main navigation menu on the left side of your screen.
2. Locate Tax Tools: In that left menu, click on Tax Tools. A dropdown menu will appear.
3. Select "Clear & Start Over": From the options presented, choose Clear & Start Over.
4. Confirm Your Decision: A new screen will appear with a prominent warning message. It will ask if you are sure you want to erase your return and begin anew. Read this carefully to be certain.
5. Execute the Reset: After confirming, your old return will be deleted. You will be redirected back to the start of the process, where you can select the product you actually need, such as the Free Edition for simple returns or Deluxe if you plan to itemize deductions.

This is the cleanest and most direct method for downgrading, as long as you perform it before finalizing any payments.

What If You Can't Clear & Start Over? Common Roadblocks

Sometimes you’ll follow the steps above only to find the "Clear & Start Over" option is missing. You’re not doing anything wrong—its availability depends entirely on the status of your return. If it's missing, you have likely run into one of these two roadblocks.

Roadblock 1: You Have Already Paid for TurboTax Premium

The single biggest reason you can't clear and start over is because you have already submitted payment. Once TurboTax processes your payment or registers your product, the "Clear & Start Over" option is automatically removed from the menu. The software now considers your purchase of that specific version to be final for that tax return.

What to do: Your only remaining option is to contact TurboTax customer support directly. You will need to explain that you mistakenly purchased a higher-tier product than you needed and wish to be downgraded and refunded the difference. Success is not guaranteed and often depends on the specific support agent you speak with, but it is the official channel for resolving post-payment issues. Be polite and clearly articulate your situation.

Roadblock 2: You Have Already Filed Your Tax Return

If you've not only paid but also e-filed your return, the situation is set in stone. Your tax data has been transmitted to the IRS and/or your state tax agency. At this stage, downgrading your TurboTax Online software is no longer possible for that year's return because the service has been fully rendered.

What to do: If you realize you made a mistake on your filed return—for instance, forgetting to include income or claim a credit—your focus should shift from changing the software to correcting your tax record. This is done by filing an amended return using Form 1040-X. You can do this within TurboTax, which will guide you through the process, but the original fee for Premium will not be refunded.

The Workaround: Deleting Specific Forms to Trigger a Downgrade

What if you haven't paid yet, but you're hesitant to use the "Clear & Start Over" nuclear option because you've already entered a lot of other data? There is a workaround that can sometimes prompt TurboTax to let you downgrade without wiping everything: manually deleting the form that triggered the upgrade in the first place.

Here’s how to attempt this more surgical approach:

1. Navigate to Tools: While inside your return, go to the left menu and click on Tax Tools, then select Tools from the dropdown.
2. Open the Delete a Form Tool: A pop-up window called the Tool Center will appear. In this window, click on Delete a form.
3. Identify and Remove the Culprit Form: TurboTax will display a list of every tax form and worksheet currently in your return. Carefully review this list to find the form that is associated with Premium features. This is usually:
   • Schedule D: For capital gains and losses (stock sales).
   • Schedule E: For rental property or royalty income.
   • Form 4797: For sales of business property.
4. Confirm Deletion: Click the "Delete" button next to the form you want to remove. A confirmation screen will ask if you’re sure. Confirm your choice.

After deleting the form, navigate back through your return. If this was the only reason you were pushed into Premium, TurboTax may automatically prompt you to downgrade, or you might see the lower price when you go through the "File" section. This method is not foolproof, as certain forms can be interconnected, but it's a valuable step to try before wiping your entire return with "Clear & Start Over."

Choosing the Right Version on Your Next Attempt

To avoid repeating this frustrating cycle, take a moment to assess which version of TurboTax truly fits your needs. Having your tax documents on hand before you begin is the best way to make the right choice from the start.

• TurboTax Free Edition: For genuinely simple returns only. Think W-2 income, the standard deduction, child tax credits, and some minor interest (1099-INT) or dividend (1099-DIV) income.
• TurboTax Deluxe: This is the most popular version. Choose it if you plan to itemize deductions. This includes deductions for mortgage interest (Form 1098), property taxes, and significant charitable contributions.
• TurboTax Premium: This is required if you have investment activity like selling stocks, bonds, or crypto, or if you earn income from a rental property.
• TurboTax Self-Employed: This is for any independent contractors, freelancers, or small business owners who need to file a Schedule C to report business income and expenses.

Final Thoughts

Accidentally upgrading to TurboTax Premium is a common and usually fixable issue. For those who catch the error before paying, the "Clear & Start Over" feature provides a clean slate, while the form deletion method offers a more targeted solution. If you've already paid or filed, your recourse shifts to contacting support or focusing on amending your return.

While consumer software is built for straightforward filings, tax professionals frequently handle client situations where the right path involves interpreting complex rules with verifiable citations. For them, having instant access to IRS guidance is not a luxury but a necessity. That’s why we built Feather AI to provide citation-backed answers in seconds, turning hours of tedious research into a simple, plain-language question and empowering professionals to focus on strategic client advice.