Intuit TurboTax is a best selling piece of tax preparation software for state and federal tax returns. TurboTax is a very versatile application with five different options for filing your tax return online.
The free edition, unsurprisingly, is the most popular. It’s perfectly adequate for those who don’t do any complicated stock transactions and don’t need to itemize their deductions. Be warned, the “free” version isn’t always completely free. Filing a federal tax return is free, but state filing will cost you $27.95. Despite this, it’s still one of the cheapest ways to do your taxes.
The Deluxe version of TurboTax is still very good value, costing $29.95 to file your federal tax return and $36.95 for state filing. If you need to itemize your deductions then this is the option for you.
The Premier option is the next tier up, and will cost you $49.95 to file your federal income taxes. State filing is also $36.95. If you need to make a slightly more complicated tax return then the Premier option is best for you. If you make a large amount of capital gains every year you’ll need the Premier tier. You’ll also need it if you make an income from a rental property.
There are also slightly more expensive options for people who run small businesses or conduct even more complicated business transactions, but they are still very affordable. The software will always ensure that you are using the correct version, so if you are not sure which one to go for then you should start with the cheapest.
Filing your tax return using TurboTax is a very simple and straightforward operation. The software will make sure you take advantage of every possible tax deduction, and calculate how much tax you need to pay as you go. Even if you are incredibly financially naïve, TurboTax will guide you easily through the tax filing process. If you have any questions you can consult the comprehensive and easy to navigate help feature. Just click on the “more info” button at any stage you are stuck with.
TurboTax has a huge amount of other useful features to make tax preparation even easier. If you are a disorganized person, or you are bad with math, you’ll be able to keep your taxes straight no matter how complicated they are.
TurboTax can even assist you if you run into trouble with the IRS. It comes with downloadable information to help you decipher complicated letters from the taxman. For an extra $39.95, an “Audit Defense” service is also available. In return for your fee, Tax Resources, Inc. will provide representation in communications to the IRS for you. During tax season this can be a big weight off your mind!
When it comes to something as important as your tax returns, it’s wise to be very cautious about the software you use. There are lots of unscrupulous people out there who might take advantage of you. However, you can be sure that TurboTax is not a scam. It’s a reputable piece of software, and a reliable tax product to easily prepare your state or federal income tax.