Do you have to pay taxes in the US? If so, how much? Do you have to file your taxes yourself? There are many reasons why someone would want to know the answers to these questions, and fortunately, they can be found here! This Turbotax guide will tell you everything you need to know in order to save money on your taxes and keep more of your hard-earned dollars in your pocket.
Even if you have little or no knowledge of tax filing procedures, this turbotax guide will explain everything you need to know, from the different forms used in tax filing to the best ways to e-file them.
What is turbotax?
Turbotax is a tax preparation software program that simplifies taxes for hundreds of thousands of people each year. The easy-to-use software can import W2 forms and has one-click guidance for claiming deductions, such as mortgage interest and charitable donations. People who make under $62,000 per year can file their federal and state taxes for free with Turbotax.
Related Article to learn more about Tax preparation: Free Guide on US tax preparation.
What is the most common question asked about this service?
A lot of people end up getting confused and overwhelmed with all of their various tax deductions and credits. So naturally, they have questions about how certain things work. They’re also usually unsure of which is better for them—but they do know they want to get as much money back as possible.
This post will help provide you with an answer that shows what taxes can be deducted and how to take advantage of tax credits. It will also help you to understand if it’s better for you to just pay your taxes or file a refundable tax credit.
Now Let’s take a look at the most commonly asked questions about the Turbotax software.
Is Turbotax software easy to use?
Turbotax is very easy to use, but you should always read over your return before sending it off. Overlooking a missed deduction or tax credit could cost you hundreds or thousands of dollars! On average, Turbotax saves users over $200 and has saved people money for more than 25 years.
If you’re not satisfied with your return, they offer a 100% satisfaction guarantee; if you pay for their service and are not happy with your tax return results, you get double what you paid back! Even still — don’t trust yourself? There’s an army of CPAs standing by ready to help file at no additional charge.
Which are the best features of Turbotax?
Turbotax includes an impressive array of features, many of which are crucial to ensuring your taxes are as simple and easy as possible. The most notable features include:
- Automatic data import
- Alerts and updates
- Tax tips
- A free filing guarantee
- Customer support (including live chat) and much more.
Whether you’re a first-time filer or have been using Turbotax for years, there’s always something new to learn about how it can make your tax prep easier. If you want to do your taxes online but don’t want all that hassle — TurboTax is definitely worth trying!
Why should I use Turbotax as my tax software?
TurboTax is a well-known, trusted name in tax preparation software. Since its inception as PC Tax in 1983 and its renaming as TurboTax shortly after that, it has grown into a full-service tax solution for people who want assistance with their taxes.
For those who are familiar with computer programs, using TurboTax is intuitive; you can drag and drop items from one section of your tax return to another.
Those who aren’t familiar with computer programs can still use Turbotax because they provide resources to help you complete your taxes—and often at no extra cost! But even if you’re comfortable handling your own taxes, it’s hard to turn down free help.
Where can I save money with this software?
Most of us will have income at some point over the course of our lives, and that income often comes with tax liability. To determine how much you owe, it’s necessary to run your information through software like Turbotax.
The good news is that Turbotax also allows you to maximize your deductions and find credits—all of which can help you save money. It’s no secret that high earners often find ways to reduce their tax liability.
What may be less obvious is that many low-income workers are eligible for a few great credits as well (if they know where and how to look).
What personal and financial data do I need to file my taxes online?
Personal and financial data refers to two types of information that you’ll need when filing your taxes: your personal information and your financial information. As of now, TurboTax will be able to import most of your personal information automatically from your last filed return.
However, if you need more help or haven’t filed a return before, make sure you have everything ready ahead of time so that nothing is missing come tax day. Personal information includes things like;
- Date of birth
- Social Security Number.
While some people wait until a few days before tax day, it’s best to prepare early so that nothing is missed.
10 things you need to know before using Turbotax
There are 10 things you need to know before using TurboTax to make sure you get the most out of the product and maximize your refund while avoiding any penalties or fines. Here are 10 tips on how to use TurboTax effectively and efficiently.
1) Why Do I Need To File An Income Tax Return?
You’re legally required to file an income tax return if you are required to file a federal tax return. The IRS defines required to file as having gross income (from all sources) greater than $10,350 ($5,700 for single filers).
Additionally, if your taxable income is at least $400 and more than 10% of that income comes from some source other than wages or pensions, then it is likely that a tax return must be filed.
In either case, there are also specific circumstances when individuals are required to file even if their gross income does not meet these requirements.
2) How Do I Know If I Have To File An Income Tax Return?
You must file a tax return if your taxable income for any year is above certain thresholds. For individuals, that threshold is $10,300 and for married couples filing jointly, that number jumps to $20,600.
If you are a single individual whose income exceeds $100,000 and married couples whose income exceeds $150,000 in a given year then you also need to file an annual tax return.
If you earned a profit from self-employment and paid Social Security or Medicare taxes must file a tax return too.
Also note that there are many additional circumstances under which filing an income tax return may be required; check out IRS Publication 17 to learn more about whether or not your situation requires filing an annual personal tax return.
3) When Is My Tax Filing Deadline?
You have three primary filing deadlines each year. Your tax return is due April 15, June 15, or September 15 depending on your tax situation. This might seem easy to remember, but if your tax situation is a little more complicated, don’t fall into one of these two common traps:
Filing for an extension – Don’t automatically assume that an extension means more time to pay your taxes. Taxpayers who file for an extension risk accruing penalties and interest—or even facing criminal charges—if they can’t pay their total balance by the extended deadline date.
No extensions for self-employed taxpayers – If you’re self-employed, don’t forget that your tax return (and payments) are due at least four months after year-end.
4) Where Can I Get Free Guidance About TurboTax?
TurboTax is one of many tax software programs, and there are others that you might want to look into. For example, if your taxes are fairly simple—or if you plan on taking a standard deduction—then TurboTax may not be a good fit for your needs.
Consider TaxAct, FreeTaxUSA or eSmart Tax instead. These services offer free advice from CPA’s who can walk you through questions and situations in which their software may not work well—or at all.
However, keep in mind that these companies will try to sign you up for their paid service as soon as possible. Make sure your conversation with an advisor is completely transparent about whether they get paid by said company or not.
5) What Should I Look For In A Tax Software Vendor?
When considering your tax software options, keep an eye out for features like free tax extensions, a free financial checkup, and easy-to-use mobile apps. You should also look for cloud-based solutions that will let you file from anywhere at any time.
For example, TurboTax Online offers federal e-file preparation and support plus state filing in more than 40 states. If you have simple tax needs, try TaxAct or H&R Block At Home (which offers guidance on self-prepared returns).
If simplicity is more important than price, use FreeTaxUSA—the company says its service is 100% free if your tax situation isn’t too complicated and includes live support during business hours.
6) Can I Use Self-Prep Tools On Any Device?
Self-prep tools let you use TurboTax on a computer, tablet or smartphone. You can also sync your desktop and mobile versions of TurboTax so that any changes and updates are reflected on both devices. According to Intuit’s website, making changes on one device doesn’t affect your download history for self-prepared returns.
However, if you decide to purchase a paid version and make changes through a tax professional, those changes will transfer over when synced back to your free version. You can also manually transfer prior year’s data from a Windows PC or Mac into TurboTax Desktop via an export function.
However, for most recent versions of Windows (Windows 7 and higher), this feature is only available through Microsoft Internet Explorer 10 or 11 browsers.
7) What Are Some Common Mistakes With Self-Prep Tools?
Tax experts say that more people today are doing their own taxes with a do-it-yourself (DIY) tax program. These self-prep tools can help make sense of complicated tax rules—but they aren’t always simple to use.
TurboTax has improved over time, but mistakes still happen. You might be able to take advantage of free online filing services, too; but you’ll need your documents in order and save as much money as possible by getting everything right on your first try. Make sure these common pitfalls don’t trip you up with self-prep software
8) Is Automatic Data Transfer Important To Me?
The quickest way to import your financial data into TurboTax is by automatically importing it from your bank, credit card, and investment accounts. If you don’t do any of those (or only have a few), then make sure that you enter all of your information manually.
You can always go back later and check to see if TurboTax has an automated solution available. But if you don’t use one during setup, there will be no easy way for you to retroactively import your data once it’s in.
9) How Do I Maximize Refunds With TurboTax?
It’s important to remember that TurboTax should not be used as a substitute for professional tax advice, so if your income is complex or unusual, you should still seek out a CPA or Tax Attorney who can fill out your forms properly.
If you just want simple, straightforward tax filing help, however, TurboTax may be worth considering. Here are some useful tips for maximizing your refund with TurboTax software:
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Keep these in mind as we explain how people find success with TurboTax and how they might also get penalized by over-optimizing their return.
10) What Kind Of Support Does Intuit Offer If Something Goes Wrong?
TurboTax is provided by Intuit, which makes all kinds of software for small businesses. The company doesn’t charge a fee for most of its products, so you might expect there would be less support available. But that’s not true at all.
Support comes in many forms: You can find product manuals and help files online; call (800) 444-4444 with questions or concerns; or email members of your team via an online ticketing system where an agent will get back to you within 24 hours (or sooner).
If TurboTax fails to load on your computer or runs slower than expected, file cancellations can be arranged in less than a day so you don’t lose money.
TurboTax is an accounting program that allows you to file your taxes electronically. It also provides on-screen assistance while you’re filing and prepares your tax forms for submission.
To use TurboTax, make sure your internet connection is stable and that you have at least one form of ID (driver’s license, passport, etc.) in addition to a W-2 or 1099 from a business. The average return with TurboTax costs $35.47 after tax credits are applied.