Buyer's Guide - If you have to file returns in more than one state

This can apply to you if you:

• Moved from one state to the other during the year
• Live in one state and work in a neighboring state
• Own your own business and makes sales or provide services in several states
• Work from an employer on assignment in multiple states each year

We recommend that you purchase TurboTax Deluxe to prepare your federal taxes. This product focuses attention on maximizing your deductions, and since state income taxes are deductible on your federal income tax return, you'll want to be sure that all taxes you pay to every state are included as an itemized deduction on your Schedule A.

TurboTax Deluxe particularly comes in handy when you've sold a house in one state and bought in another. You'll receive help with figuring out what your profit or loss was from the sale of your home and whether you even need to report the sale on your tax return this year. In addition, the expanded interview for home-related deductions helps you make sure you take the right mortgage interest, points, and property tax deductions for both the home you sold and the home you bought.