Category Archives: TurboTax

Why TurboTax 2014 Is So Simple

When you enter you username and password for the TurboTax login, you are going to have the chance to get your taxes done in a record amount time. Studies have shown that the time to prepare your taxes is greatly reduced when using online tax software like TurboTax. You want to have a tax assistant that is going to allow you to finish your taxes without feeling as though you are going to run out of time even if April 15th is approaching. The tax programs of today make your life much easier. And remember that you can use Intuit’s TurboTax program to do any kind of tax return that is needed, from the simple return to the most complicated.

The Simple Return

When you are doing a simple return (like a 1040EZ) on the program, you are going to be able to get it done quickly because you may only have one W-2. More than likely you will also not have to pay to file your Federal tax return. You can enter your information easily, and you will be able to submit your documents without problems. Also, you will be able to enter all your information for getting your refund back, select the best form of payment for you. This is going to get the money back to you quickly, and you will be able to get the process done in a matter of days if not hours.

Complicated Returns

When you are doing more complicated returns, TurboTax is going to ask you for all the information that must be entered to get these returns done. You will probably need to purchase a little bit more expense package, like TurboTax Deluxe. The program is going to ask for all supporting documentation so that you can take all deductions, and you will be asked to enter all the deductions that you can take. This is going to simplify the process, and you can log into TurboTax  any time in the future to keep working on your taxes if filing takes more than one session. The program saves all your progress, and the program will remind you how much longer you have to get your taxes done.

Extensions

You can also use the program to file a tax extension when you know that you need more time. You can file the extension (form 1040X) through the program, and the program will get a response when the IRS receives your request. You will be told how much longer you have to get your taxes done, and you will not have to worry about missing your deadline. An extra 6 months can make a big difference in the accuracy of your return and reducing your chance of getting audited. Make sure to pay any estimated tax due before the original deadline for the tax season.

Printing Your Records

When you are done with your taxes, you will need to print your paperwork for your own records. You can also save a PDF version on a drive that you backup. The paperwork that you keep is going to be proof that you filed your taxes, and you will be able to file your taxes much more easily in the future when you have your old return. Future TurboTax versions will seek out and import prior returns on your hard-drive, saving you time in entering the basic personal and work details.

If you are going to use an online program to file your taxes, you must remember that this program is going to do most of the work for you. It makes your life easier, and it is going to make it easier for you to get them done as fast as possible. Accuracy and speed make for a great tax filing experience.

Your 2014 Taxes ˗ What You Need To Know

The Internal Revenue Service (IRS) has earmarked January 20 as the start of the tax filing period.

Yesterday, the IRS stated that US taxpayers can begin filing their taxes for 2014 January 20th. The tax filing period will begin on schedule unlike last year when there were delays, in spite of a late tax rule introduced by Congress and approved by President Obama, according to the taxing agency.

Previously this month, a bill was passed by Congress that extended over fifty tax breaks, which had expired this time last year. This new congressional tax rule prolongs the tax breaks to the end of the year, permitting taxpayers to take the tax breaks while filing their tax returns for 2014. President Barack Obama approved the bill on December 19.

During the past couple of years, late rule changes introduced by Congress have held up the start of tax filing periods. That will not be the case on this occasion though, said John Koskinen — the current IRS Commissioner.

In an interview, Koskinen stated that the IRS had examined the late changes to the tax laws, and decided that nothing should prevent them from carrying on upgrading and testing their systems.

On a yearly basis, TurboTax free tax returns are filed by millions of people throughout the initial weeks of the tax period. The IRS will be ready to receive this huge influx of tax returns at the start. Taxpayers should be able to obtain their tax refunds quickly after the start of the tax season.

Recently, the IRS stated that it managed to take action on the majority of tax refunds in three weeks. This applies to tax returns that were electronically filed. The IRS states that electronic filing is the quickest method of acquiring a tax refund and recommends it.

Lately, Koskinen informed journalists that tax refunds may be held up, due to agency budget cuts made after the IRS TeaParty targeting scandal. Nonetheless, he would not say how long they would be held up. Many consider this to be the agency hoping for an increase in funding by claiming the tax season will be slow due to a lack of resources.

The Internal Revenue Service will process roughly 150 million tax returns this tax season. For the 2014 reporting period, tax refunds averaged approximately $2800.

Easy And Convenient Tax Prep With TurboTax.com

First time tax filers may be anxious about completing their taxes. Some even wait until the last minute without being aware of it. Filing your 2013 taxes is a necessity. Knowing what mistakes to avoid can make the process easier and allows individuals to submit their taxes right on time.

Those who are preparing their 2013 taxes for the first time may wonder where to begin. They have to think of their tax preparer. Have they even picked one out? Those who haven’t may not know where to turn. Others may already know about TurboTax.com. It offers free federal filing and even offers multiple options for filing state returns. Using the site allows individuals to complete their taxes securely and properly. They will be guided through each step in the tax preparation process to get their 2013 taxes submitted. There is superb customer service to help customers when they want it. TurboTax.com guarantees it will locate the most deductions that individuals qualify for. Individuals can trust their tax prep to the site and get reliable results. Take the plunge and get first time taxes done right.

Part of being a responsible adult is handling financial issues properly. In childhood taxes were likely a foreign concept. This is the time to step into reliability. Take the first step and get started on 2013 taxes. The site lays out the steps clearly and concisely. Users only have to follow along to complete their tax preparation without headaches and drama. TurboTax.com offers an easy to navigate site and all the right feature and help to make tax time simple.

Tax Tips: I Do Declare

Did you know that there are hundreds of little things that you should be declaring on your tax returns? Here are some of the most important items that must be declared on your federal and state tax return.

All Sources of Income
The tax code of the Internal Revenue Service (IRS) requires that all income earned or received must be reported on your income tax returns. The categories of income recognized by the IRS include the following:

•    Wages, salaries and tips
•    Interest on bank accounts, certificates of deposit, bonds and other investments
•    Capital gains
•    Business income
•    Alimony
•    Income from bartering
•    Dividends
•    Annuities, pensions and lump-sum distributions
•    Rental revenues
•    Gambling income
•    Earnings from agriculture and fishing
•    401(k)
•    Unemployment benefits

Each of these types of income must be declared on your income tax return. In some cases, losses in a particular category can be used to offset income earned in that category.

Certain Gifts

Depending on the amount of the gift and the identity of the recipient, you may need to report gifts to others on your income tax return and may be required to pay taxes on these transactions. Unlike donations to charitable organizations, which are generally tax-exempt, gifts directly to someone else are subject to an annual gift limit. The limit is currently set at $13,000. Couples can make gifts of up to $26,000 without incurring tax liabilities for these gifts. Certain types of gifts are not subject to the gift limit; these include the following:

•    Payments directly to universities for college tuition
•    Direct payments to hospitals, clinics and other healthcare facilities for medical procedures
•    Gifts to one’s spouse
•    Political contributions

Individuals and couples can choose to exclude additional amounts from the gift tax requirements by taking advantage of the Unified Credit. Currently capped at $1,772,800, the Unified Credit allows a greater degree of flexibility when giving gifts to your network of friends and family.

Itemizing Deductions

If you are required to declare gifts on your federal tax return, you must typically itemize your deductions as well. Itemized deduction categories include the following:

•    Mortgage points and interest
•    Medical and dental fees
•    Interest expenses
•    Contributions to charities
•    Business and education expenses
•    Depreciation of cars, trucks and other vehicles used in the course of business
•    Losses due to accidents, disasters, thefts and other critical events

The standard deduction amount may actually provide greater tax savings for your particular situation. Nonetheless, if you are declaring gifts on your tax return, you should usually itemize your deductions as well. This process can be challenging and typically requires the help of a skilled and knowledgeable tax preparer for optimal results. Some studies suggest that itemizing deductions can also increase the chances of an audit. Your tax preparer can assist in your defense if an audit does occur.

Declaring all sources of income and all sizable gifts is required by the tax code. Maintaining compliance with these legal requirements is your best defense against audits, penalties and other consequences that may arise from failure to incorporate these items into your tax return.

 

Comparison between the Cost of TurboTax 2014 and other Online Tax Services

It is finally the right period of the year for tax filing, and therefore time for individuals to decide how they want their taxes filed. A person who prefers to prepare their tax return rather than use an accountant or a tax preparation chain like H&R have most likely come across TurboTax 2014. This is among the most desirable online tax services so definitely many users will be using TurboTax2014 software. But how does its prices compare to those of other online tax services?

TurboTax 2014
Whether a customer wants to file a 1040EZ or is interested in something more complex or to file for their little businesses, TurboTax 2014 has a solution. It offers free federal tax preparation for simple returns and three other additional packages. Those other packages are the deluxe, premier and home and business at $29.99, $49.99 and $74.99 respectively. In addition to this, their customers also get free online and phone chat.

As much as TurboTax 2014 and 2013 Taxes deluxe version costs slightly more than twice compared to similar services by their competitors, they offer a refund bonus for customers to make up for the extra cost. They offer the customers an option to get all or part of their refund back on an amazon gift card.

TaxACT
TaxACT undercuts TurboTax by at least half in terms of the software prices. A person using TaxACT will not pay nearly as much as one using TurboTax if they have to file an additional state. TurboTax costs $36.99 per state while for TaxACT only $5 is paid for an extra state is added. Although TurboTax is better if an individual is expecting the amazon gift card bonus and also if they want a large return, if the deductions are calculated in the beginning of the year so that they have to pay a little then TaxACT will certainly save them a significant amount of money. It also has applications on Google play store and apple app store that help check the status of the returns.

TaxSlayer
TaxSlayer is much cheaper than TurboTax and offers two paid services namely the classic edition and the premium edition at $12.95 and $32.95 respectively. With the most expensive choice, a customer is able to receive live tax advice but all the other services inclusive of the free edition offer free phone support. As much as TaxSlayer is cheaper than the TurboTax service, it is slightly more expensive than TaxACT at $14.95. It does not have a policy that gives back additional money.

A Free Edition Of TurboTax

Over nine hundred million dollars in tax refund money went unclaimed in one year. The Internal Revenue Service reported this notable statistic, and you may wonder how this could happen. There are two main circumstances that lead to unclaimed tax refunds.

You may end up creating an unclaimed tax refund situation if you have taxes withheld from your pay but earn less than needed for filing a refund. You will end up adding to the unclaimed refund pool if you choose not to file a tax refund. You should verify whether you qualify for an Earned Income Tax Credit, and the www.turbotax.com free edition can help you determine your eligibility.

The second reason for most cases of unclaimed tax refunds involves mailing errors. You may not receive tax filing confirmation if you have moved, changed your name, gotten divorced, or been effected by errors that originated with your post office or postal carrier.

There is no monetary penalty to pay if you do decide to claim your tax refund, but there is a time limit on how long you can wait prior to filing your tax return. You have a time limit of three years from when your tax refund was originally due, so you would have to request your 2011 tax refund by April 15th, 2014.

You can avoid an unclaimed refund scenario by filing your return on time. Filing as early as possible may be helpful as well.

Direct deposit is an ideal way to avoid an unclaimed refund scenario. Electronic deposits eliminate the potential for postal delivery errors, and you may get your refund if you choose direct deposit.

Filing your income tax return is an important financial activity. TurboTax has helped millions of people file their taxes, and you can learn about tax refunds by visiting www.turbotax.com.

Tax Accountant Vs Tax Software

Tax Software

You are one of 50,000,000 Americans who must fill out an income tax return by March 15th … file yours early. (Photo credit: Keijo Knutas)

Why choose a tax accountant over tax software?

Preparing and filing taxes are rarely activities most people look forward to. Whether you need to prepare an individual or business tax return, you may be looking for an easier way to simplify this process. While one option available is for you to prepare your tax return on your own, the fact is that many people will find the process easier to complete when they use either tax software or the services of an accountant. While both options are preferred by many over completing a tax return on your own, there are clear benefits associated with using the services of a tax accountant.

Finding All Deductions
For most individuals and businesses, it is not enough to simply prepare and file a return. The goal also is to minimise the amount of taxes owed and even to maximize a refund. Tax software is designed to help taxpayers identify common tax deductions, but the fact is that you may qualify for additional deductions that are less common. In some cases, you may not be clear about if you qualify for certain deductions or not. Tax software may help you to identify some of these deductions, but you simply cannot beat the benefit associating with having a live professional assist you with the identification of deductions.

Getting Questions Answered
Most tax software programs are designed to be user-friendly, and they have a helpful hints or frequently asked questions section that may assist you if you have questions. However, many questions that taxpayers have are unique. They may fall into what can be perceived as a gray area, or the situation may be unusual and may require expert assistance. The fact is that you need to file your return accurately to avoid penalties. Therefore, working with a live tax expert can be useful to you.

A Look Toward the Future
Furthermore, a tax accountant can help you to plan for the future. When a tax accountant reviews your finances now, he or she may be able to identify different steps that you can take to minimize your tax liability next year or for several years in the future. You may be planning to purchase a new home, to buy office equipment or to make some other change, and there may be tax consequences associated with this. By working with a tax accountant, you will be able to better plan for the future and avoid paying more than necessary on your tax return.

As tax day approaches, one of the best steps that you can take to ensure that your tax return is filed accurately and on time and to ensure that your tax liability is minimized is to work with a professional tax accountant. The best tax accountant to use is one who is experienced and knowledgeable and who has the desire to communicate openly with you about your taxes. Take time today to locate a tax accountant to work with, and you can rest easy knowing that your tax return will receive the personal attention it deserves.