Return Complexity Levels

⚠️ These complexity level definitions are subject to change as services evolve.

🩶 Level 0 — Basic Returns

Best for: Simple individual returns.

Typical scenarios include:

Great for filling out basic forms on the way to completing a larger, more complex return

🟢 Level 1 — Essential Returns

Best for: Most individual returns with common income and deductions.

Typical scenarios include:

• Standard 1040 with wages and itemized deductions

• Mortgage interest, property taxes, and charitable donations

• A few stock sales or basic investment activity

• One Schedule C (small business) or Schedule E (rental)

• HSA/MSA, child care, or education credits

In plain terms:
If your client has a straightforward tax situation — one business or rental, and a few standard deductions — this is almost always Level 1 (Essential).

🟡 Level 2 — Advanced Returns

Best for: Clients with multiple income types, activities, or states.

Typical scenarios include:

• Multi-state or part-year resident filings

• Several K-1s (1065, 1041, 1120S) or K-3s

• Rentals, self-employment, or small business income (QBI)

• Complex 1099-B investment activity

• Stock options or carryovers

In plain terms:
If your client owns rentals, runs a small business, or has several K-1s, this is Level 2 (Advanced) — returns with “a lot going on” that need extra review.

🔴 Level 3 — Ultra-Complex Returns

Best for: High-net-worth or international clients needing specialized review.

Typical scenarios include:

• Multiple entities, trusts, or holding structures

• Foreign income, FBAR, or international filings

• Alternative Minimum Tax (AMT) or complex carryovers

• Non-resident returns or multi-country interactions

In plain terms:
If your client has many entities, international income, or complex cross-border reporting — it’s Level 3 (Ultra-Complex).