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How TurboTax Works
The newest version of TurboTax offers a bevy of features that can help you get your taxes filed quickly, perhaps more quickly than you could have filled out the paperwork yourself. The one that stands out is the ability to import W2 information directly from your employer and link it to all of the related tax information and forms.
Once you file your taxes, TurboTax will not only help you prepare your tax return, but can also offer users a summary of what is actually due to be paid when tax day comes around.
TurboTax also has a feature to allow users to cut together a video explanation of their taxes to be sent as a message to someone, like a spouse or representative. This makes it incredibly easy to let others know all of the details and answer any questions that they may have.
How The TurboTax Questionnaire Works
The TurboTax “forecast” is the most recent development in tax preparation. The TurboTax IRS questionnaire does the work for you. Before jumping into the TurboTax review, let’s take a look at how the process works.
The Forecast calculator is a program within TurboTax that determines your tax refund by asking you a series of questions. You need to complete the TurboTax questionnaire before you finish setting up your tax profile, otherwise you’ll have to go back and do it. You’ll choose the simplest answers to get to the bottom line of your taxes.
If you are filling up your tax return for the first time with TurboTax, this is a great feature to try. The TurboTax IRS calculator will take you through a series of questions based on your tax filing status and income, which essentially helps the software prepare your taxes for you. TurboTax is supposed to give you the “maximum refund guaranteed,” so it may be helpful to let the software do the leg work.
Once your tax profile is setup and you’ve entered your tax information, you can see your estimated refund if you use the TurboTax Forecast.
What Happens Next
On the next step, you will have the option of entering personal information about your family size. At the top of the page, you will be asked how many dependents you have. This question is about all the people living in your household, not just your own children. Having lots of children obviously qualifies as a larger family. Likewise, if you have a niece or nephew that you support and take care of, they count as a dependent. It is important to enter everything accurately because it can trigger a change to your deduction and refund amounts. If you don’t have a baby, first time homeowner or student you can enter zero.
The next step is the location of your family. The IRS has fifty states, every province and territory, and many territories represented when it comes to tax. They want to know where you live so they can apply the correct tax laws to your situation. Select from the list of possible locations to find yours. If it isn’t in the list, select the one that best describes you. If you live in one country but work in another, then you can still file as a resident of the country in which you live. After you pick the location of your family it will automatically change the state that each household member is claiming.
What’s New in TurboTax for 2020
Intuit, the maker of TurboTax, continually improves its Tax Return software with updated versions released each year. It works on Windows and Mac systems (both 64 bit).
Similar to when you get new software for your work computer or mobile device, the most recent version of TurboTax will replace your older editions. The advantage of this is that you can take advantage of all the improvements and new features offered by your tax preparation system.
Reviewing the new features is a great way to save money and ensure that you file your returns accurately.
Also, don’t forget to review the frequently asked questions for TurboTax, as its wealth of information can help you navigate certain tax topics and explain how they work.
Additional links may also be helpful for people who want to learn more about certain tax topics.
The updates to Turbo Tax Deluxe include:
- “Question Expert” feature which highlights questions that you’ve answered incorrectly in previous years and reminds you to take a closer look this time knowing that these questions are most likely likely to be more complex
- Cash flow management tools help you track net income for the year and also by month so that you have an overview of your available funds
- Payment screen provides more helpful hints
- Easier navigation to end of year program updates
TurboTax Features and Benefits
Every year, individuals and businesses spend days, even weeks, filing out tax forms and filling out dozens of W-2s, 1099s, and other IRS-requested forms.
And, if you’re like most Americans, you might even encounter some surprises when you file your tax return. It’s easy to see why people are looking for a better way to handle the tax filing process. It’s time consuming and expensive to hire a tax professional to prepare your tax return each year.
That’s why personal tax preparation software is such a great option for so many people. TurboTax allows you to prepare your own tax returns quickly and easily, avoiding expenses you may not be able to afford.
My favorite features of TurboTax include:
Home & business – Prepare personal income tax returns and small business tax returns.
State income tax available – You can easily add or remove state income taxes from your federal tax return.
Forms fitting your unique situation – Changes in tax laws and regulations affect your next year’s taxes, which is why the TurboTax software changes its forms based on the information you provide to you.
TurboTax Plans and Prices
| Why TurboTax?
TurboTax is an easy and cost-effective way to file your taxes. Its user-friendly interface makes it easy for anyone to prepare taxes. It also has all the necessary tools and options, helping you avoid the potential mistakes.
Now, you may wonder why TurboTax may be a better choice than other options for preparing your taxes. Let’s explore a few factors that make TurboTax stand out from the rest.
The price is unbeatable when compared to other premium tax preparation options. It offers the cheapest and most comprehensive solution for filing your income tax returns.
In the unlikely event of IRS Rejection. TurboTax will help you with the Re-File your tax return, without any extra costs.
Quick and Easy
It is designed to be a simple, quick and easy way to prepare your taxes. As it provides an extra guide and screenshots throughout the application, you are sure not to miss out on any steps.
How TurboTax Works?
TurboTax Free Edition
The last few years have seen a major boom in the home tax preparation industry. In 2009, the IRS estimated that between 25 and 30 million returns were prepared and filed in the U.S. alone. That number was referred to as the largest increase in the use of do-it-yourself tax-prep software on record.
As the market for online tax preparation services has grown, competition has increased as well. One of the most popular tax preparation sites in the United States – and also the one with the most prominence today – is TurboTax.
TurboTax by Intuit, Inc. (a California-based tax preparation software company) is one of the most recognized names in home tax filing. Intuit, Inc. is a Fortune 500 company that develops financial software and calculators. Its TurboTax product is one of the most popular online tax-filing services in the U.S. And although the name TurboTax is used generically to refer to any software package, the actual name of Intuit’s tax preparation program is TurboTax Online.
TurboTax has become a well-known name when it comes to tax preparation, and you can choose from two different versions – the Deluxe version, which is great for people who own a home and have state or local tax returns, and the Premier version, which is for people with more complicated tax situations. You can get your returns done quickly with TurboTax, but you must complete your tax forms accurately when using TurboTax, or you could have to deal with extra fees.
Tax Year : Different versions of TurboTax can be used to prepare returns for different tax years. For example, TurboTax Deluxe can be used to prepare returns for 2010 and 2011 while TurboTax Premier can be used to prepare returns for 2011, 2012, and 2013.
Different versions of TurboTax can be used to prepare returns for different tax years. For example, TurboTax Deluxe can be used to prepare returns for 2010 and 2011 while TurboTax Premier can be used to prepare returns for 2011, 2012, and 2013. Tried and True Customization : TurboTax has been around since 1985, so they’ve had plenty of time to work out all the details and become very efficient. The programs are easy to use, and you can easily tailor them to your needs.
Despite all of those changes, TurboTax has managed to retain its reputation for being one of the best options available when it comes to interactive software.
If you’re self-employed or looking for a better tax preparation solution, perfect for you. TurboTax Self-Employed is specially designed to fit the needs of self-employed taxpayers.
This software is definitely not designed for tax professionals. While you do get free advice from certified tax experts, they can’t review your returns. The software provides quality guidance and advice during your tax preparation process.
TurboTax Self-Employed offers live expert advice with the Online Tax Advice service. This service is included free with your TurboTax Self-Employed purchase. With this service, you can get detailed tax guidance and answers to tax questions from a CPA or Enrolled Agent on weekdays from 6am to 11:30pm PST and on weekends from 7am to 9pm PST. TurboTax will provide you with a list of certified tax experts, and you can choose the expert who works in your area of expertise. Once you select the expert, TurboTax will put you in a virtual chat room where you can communicate with them securely. This service is only available in the United States.
Should You Sign Up with TurboTax?
The US Congress insists that the US tax code be filled with anti-avoidance provisions…and then they wonder why tax compliance is so high (over 50% of households report non-compliance with their current tax obligations)!
President Lyndon Johnson said it best: “It is the plain, cruel truth that tax has got to be a little boring.”
Tax is a little boring. It’s a fact of life. But no one wants to have to put together a tax return all by himself. Thankfully, TurboTax—and its competitors—are there to help with its easy-to-use software. Get the best tax refund with TurboTax today!
Now, I can hear you, the chorus of doubters and naysayers. “TurboTax is not free!”
“TurboTax is just after my money!”
True, TurboTax will cost you some money, but you get what you pay for in this case. Here are five reasons why you should use TurboTax to do your taxes:
TurboTax Saves You Time
Tax preparation is the most tedious work I have to do.
If you want to get your taxes done online without paying too much money on it, then you might want to consider using a tax preparer like TurboTax.
Using their software is simple. It walks you through the process step-by-step and does most of your work for you. Once you are finished with all of the necessary paperwork, it will tell you how much you owe and how much your refund is.
This makes it super easy for you to avoid making any mistakes. You can also include as many documents as you want, such as supporting documents or photographs of your receipts; it will even help to import them from your scanner! Also, if you have your tax documents in a Cloud storage folder and you connect to it via TurboTax, it is going to look for the files you need and import them within a matter of seconds.
Finally, if all of the above is too complicated for you to figure out, TurboTax uses an interview process that is going to help you understand the basic questions you need to answer and gives you the answers you need. All you have to do is just type in the responses accurately.
As we have said before, filing your old tax documents can be time consuming and stressful, so if you are looking for the easiest way to get it done, you might want to check out this program.
About the Author
Tim is an accountant and technology enthusiast who is proficient with QuickBooks, Xero, and Magento. He began using TurboTax about four years ago and was pleased with how easy it was. Since then, he’s enlisted the help of TurboTax to help him prepare his taxes. He began sharing his knowledge and reviews on TurboTax last year.