TurboTax is one of the easiest ways to file your taxes regardless of your location in the US. This platform makes even complicated taxes as easy as you can ever imagine. Not only that, TurboTax is keen on finding every deduction and credit you qualify for so that you can enjoy maximum refund easily and faster.
Therefore, if you are in search of the best online platform to file your taxes, Turbo tax is the best to settle for as it is not only swift but affordable as well.
TurboTax | Overview
With over 40 years of remarkable history in tax preparation, Turbo tax has been offering nothing but top-notch experience in the tax filing arena. This platform is an online tax prep platform that has been helping individuals file taxes at their comfort since the mid-1980.
Ever since then, the platform never stopped being one of the forces to reckon with in the world of taxes. This is because it offers many amazing features that most discount tax software doesn’t offer. One of those features includes downloading tax details from your bank or investment account.
Turbo tax online platform is undoubtedly a blessing to all as this platform makes it possible for you to file your taxes for free both at the federal and state level, provided that you have a simple tax situation.
Additionally, you get to file these taxes yourself and have them reviewed and audited by tax experts, who will check for potential mistakes and overlooked tax deductions.
How TurboTax Works
Turbotax is a platform designed to make your online tax filing return super easy and convenient. All your need do is to fill out a few online questions they ask during the tax filing process. The platform will save you the stress and put your numbers together.
You’ll start by entering your Turbo Tax login and you commence by answering basic questions such as your name, address, and your social security number. After that, you will be asked certain questions as regards your income and the type of job you do. Regardless of what you do, TurboTax can work for you.
The platform will also make enquires about the dependents you might have, charitable deductions, and other relevant tax-related information. Thereafter, TurboTax will examine your form after you have completed all of the questions in order to ensure correctness.
However, if there are any apparent faults or suspected errors, TurboTax will tell you what needs to be fixed or what it thinks might be wrong.
The program will also offer you advice on how to further reduce your tax liability. For example, it might advise starting an IRA, contributing to one, or boosting charity deductions.
Interestingly, you can completely complete your tax return on your own using several programs from TurboTax. Alternatively, you can choose to opt for the platform’s agents, tax attorneys, and certified public accountants, who are always ready to assist you.
TurboTax offers two primary services: the TurboTax Live and the Do-It-Yourself famously called the DIY method. However, if you are wondering, how much does TurboTax cost? Need no worries, TurboTax pricing is dependent on the service you opt for.
Most people choose this service because it is super easy and affordable. This is because the DIY platform employs an interview-style procedure in which it assesses your tax situation based on your responses to a series of basic questions.
It then selects the forms and schedules you need to successfully complete your tax return based on your responses.
However, if it detects that you need a form or service that your current plan does not allow such as itemized deductions or self-employment income. Turbotax will automatically ask you to upgrade without losing the data you’ve already entered.
One interesting thing about this service is that, if you opt for a paid plan, you will not be charged until you file.
TurboTax DIY Plans and Pricing
The DIY plans offer four plans, each applying to specific tax situations with pricing showing their capabilities and effectiveness. However, you can always enjoy the Free Edition of the plan and wait until TurboTax requests you to upgrade.
Below are the explicit details of the DIY Plans.
1. Free Edition
This DIY plan offers free federal and state tax returns. Because it is not paid, it offers limited schedules and is only suitable for simple tax situations. Services like itemized deductions, rental property income, and stock sales are not available on this plan.
Amongst the services of this plan that you will enjoy include; unemployment income, retirement distributions, and limited 1099 interest and dividends. You will also have access to child tax credits and earned income tax credits.
Note that this plan is totally free for federal filing. But, if you want to file multiple state returns, you might have to pay a token for your second and other additional filings.
This plan is suitable for individuals who want to file more complex tax situations such as itemized deductions and other miscellaneous income. It is the most popular choice of the TurboTax as it offers all the services the free edition offers coupled with other services.
With this plan, you can claim student deductions and credits as well as enter mortgage interests. The deluxe plan cost $40 each on both federal and state returns. Explained here are some of its features:
- Itemized Deductions: If you think it is financially profitable to itemize deductions, Turbotax is readily available to support your decision and recommends filing a Schedule A. Therefore, you need not worry about the processes, the Deluxe package will sort all necessities.
- Support for Miscellaneous Income: If you also earn miscellaneous income, the Turbotax Deluxe pancake enables you to log it in your return. With this plan, you can log unlimited 1099s.
- Access to All Previous Tax Returns: As a deluxe customer, you have access to all previously filled tax returns with TurboTax as well as all the user data you have tied with your TurboTax accounts.
TurboTax Premier offers support for most common schedules, including B, D, and E, so it’s appropriate for filers with investment income, rental income, and other forms of nonwage income. This plan comes with all the features and functions found in lower-priced plans, plus:
- Rental Property Income: You must submit Schedule E if you plan to disclose income from rental properties or pass-through businesses such as S-corporations, trusts, estates, and some forms of partnerships, you are to file Schedule E. With this plan, all the necessary forms that will guide you through all appropriate credits and deductions are made available.
- Stock Sales and Other Capital Gains: TurboTax Premier can as well help you file Schedule D, which covers capital gains or losses from the sales of security and other assets. It will as well walk you through relevant credits and deductions.
You can also import transaction records from your brokerage automatically with the premier plan. TurboTax Premier also calculates your cost basis for multipart transactions automatically and supports cryptocurrency investors as well.
- Interest and Dividend Income: If you have more than $1500 interest income or dividend, it is recommended to file Schedule B. This plan is designed to provide you with all the necessary forms and support including the checks for relevant deductions and credit.
This package is best for solopreneurs, freelancers, and small business owners. The TurboTax self-employed packages cover all credits and deductions as long as they are related to Schedule C. This plan cost about $110 for federal returns and just $40 for state returns.
TurboTax Live Full Service
Choose TurboTax Live Full Service if you want a totally hands-off tax preparation experience and are ready to pay for it.
With the TurboTax Live Full Service, all that is required of you is to gather all necessary tax documents and safely upload them to TurboTax. After that, the system assigns your file to a professional tax preparer who completes your return.
In case of any issues, these professionals will reach out to you and you can as well monitor their progress through your TurboTax account. If there are no issues, once they are done with the review of your return, you will be contacted, after they’ve perfected the job. If everything is accurate, then you sign, file, and pay.
TurboTax Live Full Service plan is a bit expensive as the price starts around $200 to $400.
Additional Features of TurboTax
Without a doubt, the TurboTax online platform is one that renders top-notch services and amazing features across all packages. Most of these features are even made available at no extra cost. Check out a few of the features of the platform below:
Both Android and iOS smartphones can use TurboTax’s sleek, user-friendly mobile apps. The applications have all of the essential features and capabilities of the main website, which is already quite mobile-friendly.
Pay Filing Fees With Your Refund
With TurboTax, you can utilize your federal refund to cover your filing fees regardless of the plan you choose. The fee is typically quite high and subject to change depending on your filing date and the plans selected.
Real-Time Refund Display
Your projected federal and state refund is calculated by TurboTax in real time and displayed in the interface’s upper left corner. This amount updates to reflect any new information you submit that has an impact on your tax liability.
Advantages of TurboTax
- Comprehensive Customer Service and Peer Support Resources: With a vast peer support network and a fully staffed phone support hotline as its cornerstones, TurboTax’s customer care system is remarkably effective.
- Discounts Are Better Than Some Competitors: The special discount made available for certain active duty and reserve military personnel offered by TurboTax is better than that which other competitors offer. The lower-ranked enlistees especially are entitled to free upgrades to TurboTax Deluxe.
- Ideal for Mobile Users: TurboTax is the best option for taxpayers who prefer to use mobile devices, as it has a mobile-responsive website and apps for both iOS and Android.
Disadvantages of TurboTax
- More Expensive Than Most Competitors: TurboTax has the most expensive sticker prices of all the popular online tax preparation software, with one federal return costing up to $200.
- High Computing Charge When Filling Fees with Federal Refund: TurboTax levies a hefty processing fee if you decide to pay your expenses with your federal refund, unlike taxpayers which don’t impose any processing costs.
- Limited Offers with The Free Plan: Only simple tax situations can be handled with TurboTax’s Federal Free edition. It isn’t the best option for you if you want to itemize your deductions, pay self-employment tax, or disclose your investment gains and losses. You must upgrade to a premium plan if any of those conditions apply to you.
Frequently Asked Questions
Is TurboTax Really Free?
Yes! TurboTax has some free options for both federal and state returns that you can use at any income level. However, the free options support a few packages such as child tax credits, retirement account distributions, etc.
Is TurboTax Reliable and Safe?
With data encryption, TurboTax protects your personal information. Every time you enter turbo tax login, ensure you also use multi-factor authentication to confirm your identity.
Is TurboTax Worth It?
Although TurboTax pricing is a bit exorbitant, however, it is worth trying. This platform renders one of the most comprehensive customer services you will ever find. It helps you file taxes with confidence and make importing transactions easy and faster.
Aside from that, there are many features to enjoy when you choose TurboTax, most of which other online taxpaying platforms do not offer. So, I’d say it is definitely worth it!