How to Upgrade TurboTax Deluxe to Premier

Starting your tax return in one version of TurboTax only to realize your financial situation requires another is a common scenario. Life changes—you sold some stock, bought a rental property, or inherited assets—and suddenly, the reliable tools in TurboTax Deluxe aren't quite enough. This guide provides clear, step-by-step instructions on how to upgrade from TurboTax Deluxe to Premier, ensuring you have the right tools to handle your investments and rental income accurately. We’ll cover the process for both the online and desktop software versions.

When and Why to Upgrade from TurboTax Deluxe to Premier

Making the switch from Deluxe to Premier isn't about getting unnecessary features; it's about gaining access to the specific forms and guidance required for your tax situation. Understanding the key differences helps you know precisely when an upgrade is necessary for tax compliance.

TurboTax Deluxe is designed for homeowners and taxpayers who itemize deductions. It capably handles:

• W-2 income and other standard income sources.
• Mortgage interest and property tax deductions (Schedule A).
• Student loan interest deductions.
• Charitable donations.
• Maximizing deductions for homeowners.

TurboTax Premier includes everything in Deluxe but adds specialized features for handling investment and rental property income. The upgrade becomes mandatory when you need to report:

• Stocks, Bonds, and Mutual Funds: If you sold any investment during the tax year, you must report capital gains or losses. This requires a Schedule D and often Form 8949, which are exclusive to Premier and higher versions.
• Cryptocurrency Transactions: Selling, trading, or earning crypto generates taxable events. TurboTax Premier has dedicated sections to correctly report these complex transactions.
• Rental Property Income and Expenses: If you own and rent out property, you’ll report your income and claim related deductions (like depreciation, repairs, and property taxes) on a Schedule E. This schedule is only available starting with Premier.
• Employee Stock Plans: Reporting income from an Employee Stock Purchase Plan (ESPP), Restricted Stock Units (RSUs), or other stock options often involves complex cost basis calculations handled within Premier.
• Trusts and Inheritances: While complex estate and trust returns (Form 1041) require TurboTax Business, receiving income as a beneficiary (reported on a Schedule K-1) is handled within TurboTax Premier.

In short, the moment your tax situation involves drawing income from assets you own—as opposed to just wages you earn or standard deductions you take—the move to Premier becomes a necessity.

How to Tell When an Upgrade is Needed inside TurboTax

You don’t have to guess when it's time to upgrade. TurboTax is designed to recognize when you’re entering information that your current version can't handle. When you attempt to input data related to investments or rental properties in TurboTax Deluxe, the software itself will stop you and prompt an upgrade.

This typically happens when you navigate to specific areas in the "Wages & Income" section of the software:

• When you select "Stocks, Cryptocurrency, Mutual Funds, Bonds, Other."
• When you choose "Rental Properties and Royalties (Sch E)."

Once you click on one of these topics, TurboTax Deluxe will display a screen explaining that these topics require an upgrade to Premier. The message might say something like, "Let's upgrade to TurboTax Premier so we can cover your investments and rental income." The prompt is built into the workflow, making it nearly impossible to miss. You won’t be able to proceed with entering information for a Schedule D or Schedule E without first agreeing to the upgrade.

Step-by-Step Guide: Upgrading in TurboTax Online

The upgrade process in the online version of TurboTax is smooth and integrated directly into your filing experience. All your existing data is preserved, and you only pay the price difference when you file.

1. Sign In to Your Account: Log in to your TurboTax Online account and navigate to the tax return you've already started.
2. Go to the Triggering Section: Within your return, navigate to the “Wages & Income” section (which may also be labeled "Income & Expenses"). Scroll down until you find the area for "Investments and Savings" or "Rental Properties and Royalties."
3. Initiate the Upgrade Prompt: Click “Start” or “Revisit” next to the relevant topic, like stocks or rental income. The moment you begin this workflow, TurboTax will detect that Deluxe isn't equipped for it.
4. Follow the Upgrade Screen: A new screen will appear, clearly stating that TurboTax Premier is required to continue. It will highlight the key features of Premier and show the price difference.
5. Confirm the Upgrade: To proceed, click the button that says "Upgrade Now" or a similar phrase. This action adds the Premier version to your cart, but you won't pay for it immediately. The new cost will be reflected in your total, payable only when you are ready to file your return.
6. Continue Your Return: Once confirmed, you will be taken directly to the section you were trying to access. All the information you previously entered in Deluxe remains intact. You can now begin entering your investment sales, rental income, and property expenses without interruption.

This on-the-fly upgrade ensures you never have to start over. The system simply unlocks the more advanced features you need as you go.

Step-by-Step Guide: Upgrading TurboTax Desktop Software

Upgrading the desktop (CD/Download) version of TurboTax is a different process. Because it’s installed software, you can't simply "unlock" features online. Instead, you need to purchase and install the higher-tier software and transfer your tax file. Your data is still safe and the process is straightforward.

1. Identify the Need to Upgrade: Just like the online version, when you open your TurboTax Desktop Deluxe software and attempt to add investment or rental income, a prompt will appear. It will explain that this topic isn't supported in Deluxe and requires Premier.
2. Purchase TurboTax Premier: The desktop software will usually provide a link to purchase the Premier version from the Intuit website. Alternatively, you can buy the CD or download from any authorized retailer. You are purchasing a separate product at this stage.
3. Important: Save Your Deluxe File: Before you close the Deluxe software, make sure to save your tax file by going to File > Save. Take note of the file name and where it's saved on your computer (it will have a .tax2023 extension, or the relevant year).
4. Install TurboTax Premier: Install the new TurboTax Premier software on your computer by following the on-screen instructions, whether you are using a CD or a downloaded installer.
5. Open Your Tax File in Premier: This is the most important step. When you launch TurboTax Premier for the first time, do not choose to start a new return. Instead, go to the menu and select File > Open Tax Return.
6. Locate and Select Your File: Navigate to where you saved your .tax file from the Deluxe version and open it. TurboTax Premier will automatically read the file, transfer all your previously entered information, and convert it for the Premier version. No data is lost.
7. Continue Your Return: You can now pick up right where you left off. Go back to the "Wages & Income" section and enter your investment and rental data. The necessary forms and guidance will now be available.

Common Questions When Upgrading TurboTax

Navigating an upgrade mid-file can bring up a few questions. Here are clear answers to the most common concerns.

Can I downgrade from Premier back to Deluxe?
In TurboTax Online, you generally cannot downgrade once you've upgraded and entered information specific to the Premier version (e.g., a stock sale). The system locks you into the higher-tier product required to support that data. In the desktop software, downgrading isn't an option; you would need to abandon your current file and start completely over in the Deluxe software, losing all your work. It's best to confirm you need Premier before proceeding.

Will I lose my existing information when I upgrade?
No, not at all. In both the Online and Desktop versions, your information is preserved. The upgrade process is designed to seamlessly carry over every piece of data you've already entered. For desktop users, this depends on correctly opening your existing tax file in the new software rather than starting from scratch.

What happens if I already paid for Deluxe and now need Premier?
This depends on the version you're using.

• Online Users: If you paid upfront for TurboTax Deluxe Online, the amount you paid is automatically credited toward the price of Premier. You will only pay the difference when you are ready to file.
• Desktop Users: This is more complex. If you bought Deluxe from a retailer, that retailer will not issue a refund. You will need to purchase the Premier software separately. You can then contact Intuit's customer support directly to inquire about a refund for your initial Deluxe purchase under their "60-Day Money-Back Guarantee." Be prepared to provide proof of purchase for both products.

Final Thoughts

Upgrading from TurboTax Deluxe to Premier is a routine step prompted by a change in your financial activities, such as selling investments or owning rental property. Whether you're using the online version's fast, integrated switch or the desktop software's file-transfer method, the process ensures all your tax data carries over, and you can file an accurate and compliant return.

While software like TurboTax files the forms correctly, complexities related to calculating cost basis for esoteric assets, understanding depreciation recapture rules, or interpreting new cryptocurrency guidance can stop you in your tracks during preparation. Many tax professionals find they need quick, verifiable answers to advise clients or complete complex returns. For those moments, we developed a tool like Feather AI to instantly provide answers sourced directly from the IRC, IRS rulings, and state tax codes, making it simple to get audit-ready guidance.