You can also print copies for your records or save them to your computer for future use.īut TurboTax doesn’t disappear on you once you file. But you always have the option to print your return and file it by traditional mail. In most cases, you can e-file - at least, for your federal return. “If you pay an IRS or state penalty or interest because of a TurboTax calculation error, we’ll pay you the penalty and interest.” Here’s what TurboTax says about their guarantee on its website: It also has an accuracy guarantee that can protect you in the event a mistake is made on your return. If you’re satisfied the information is accurate, you can then go about the business of actually filing your return.īut, before you do, you should know that TurboTax offers a few very important guarantees.įirst, it promises to get you the largest tax refund that’s legally possible. TurboTax also provides you with a summary to review before filing your return.
TURBOTAX RETURN CALCULATOR 2021 HOW TO
The software then makes suggestions on how to lower your tax liability, such as putting more money into a tax-advantaged retirement plan. Once you’ve answered every question and provided all of the requested information, TurboTax will review your return and let you know if there are any errors or missing information. According to the Internal Revenue Service (IRS), the standard deduction for the 2020 tax year is $12,400 for singles, $18,650 for heads of household, and $24,800 for married couples. You might find that your deductions aren’t substantial enough to itemize, which has become fairly common since the Tax Cuts and Jobs Act (TCJA) raised the standard deduction. You’ll be asked to provide the information for medical expenses, mortgage interest paid, state and local taxes, and charitable deductions, if you have any. Next, you come to the deductions portion. With that capability, entering stock trades becomes a breeze. But it’s also possible to import the capital transactions schedule from your online brokerage account. It gets a little more complicated when you have to enter stock transactions. You’ll also be asked to provide information from 1099s, like bank interest or dividends earned. This means you can upload the tax forms directly to the TurboTax platform, and it gleans some of your information without any work on your part. However, W2s from many large employers are available for direct import, making the task even easier. From there, the questions become more substantial, and most are fill-in-the-blank type questions.įor example, you’ll be asked to fill in information directly from your W2. For example, the process begins with some basic information about your employment and family size.
The questions that TurboTax asks are very basic and easy to answer, and they’re also grouped around general tax topics. Let’s do a walk-through of TurboTax so you know what to expect, and which documents you’ll need before you begin. Once you purchase the software and start the process, you’ll mostly follow a simple question and answer format.Įven if you don’t know anything about income tax preparation, this sequence can easily guide you through the process. If you and your spouse are filing separately, and your spouse claims the standard deduction, you cannot claim the sales tax deduction or other itemized deductions.One major benefit of TurboTax is its user-friendly and intuitive user experience. For more information see IRS Publication 501. Note: There are exceptions for a child who was born or died during the year and for a kidnapped child.
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