Should I Use TurboTax?
Curious about TurboTax and whether it's the right fit for you? We've got you covered! In this detailed guide, we'll cover TurboTax's features, benefits, and what you need to know before filing your taxes. Whether you're a first-time filer or an experienced filer, this guide will help you know if TurboTax is the best option for your tax preparation needs.
Key Takeaways
- TurboTax is suitable for a wide range of taxpayers, including individuals, families, small business owners, and self-employed professionals.
- The software guides users step-by-step through the tax preparation process, making it user-friendly even for those with minimal tax knowledge.
- The TurboTax mobile app allows users to snap receipts, track donations, and input information on the go, providing a high level of flexibility.
- TurboTax guarantees 100% accurate filing and uses robust security measures like encryption and multi-factor authentication to protect user data.
Understanding TurboTax
TurboTax is an intuitive online tax preparation and e-filing service offered by Intuit. TurboTax launched in 1984, and since then has become the category leader in tax preparation for millions of customers each year. Its popularity is due to its ability to handle a wide variety of tax filing needs and complexities and offers everything from do-it-yourself software to handing off your taxes to a tax expert and having them do it for you.
TurboTax is designed to meet the needs of a wide range of taxpayers, including individuals, families, small business owners, self-employed individuals, and investors. Its flexibility and ease of use make it a great choice for anyone looking for a reliable, efficient, and accurate tax preparation solution. With its intuitive interface and step-by-step guidance, TurboTax simplifies the process of preparing your taxes so you can make sure you’re getting the best outcome.
Key features of TurboTax
TurboTax is a complete tax preparation solution that has many features to make the tax filing process simple and accurate. We offer a user-friendly interface, comprehensive guidance, accuracy, support for various tax situations, and robust security to provide a convenient, reliable, and secure solution for individuals and small businesses to prepare and file their taxes with confidence.
Simplicity
TurboTax has a user-friendly interface that guides you through each step, from data entry to filing. This makes it easy for people of all tax knowledge levels to use.
You also don't have to manually enter all of your tax information. TurboTax can import your W-2s and other tax documents from over 3 million companies, making the process easy and accurate. The Taxcaster tool also estimates your possible tax liability or refund amount, which can help you make informed decisions as you prepare your taxes.
Mobile App
TurboTax is more than just another app on your phone. It is convenience at your fingertips. The TurboTax mobile app lets you snap receipts, track donations, and input information on your phone or tablet, whether you're on the go or sitting at home. You can move seamlessly between mobile app and desktop and quickly and easily e-file your taxes from whichever device you want when you’re ready to file.
Reasons to use TurboTax
Let’s take a closer look at what TurboTax has to offer:
Covers hundreds of deductions and credits
No matter how simple or complex your tax return is, we'll help you find all the deductions and credits you're eligible for.
TurboTax's comprehensive approach helps identify potential savings by thoroughly examining your financial information. We search for over 350 deductions and credits that you may be eligible for, covering a wide range of expenses and life situations. This helps you minimize your liabilities and maximize your refund.
If you’re self-employed, TurboTax tailors its search for deductions based on your specific needs. For example, self-employed individuals might be able to claim home office deductions, subscription costs, vehicle expenses, business travel, and supplies. Whether you’re a freelancer or a small business owner, TurboTax ensures you don’t miss out on industry-specific deductions that can reduce the taxes you owe.
Expert support
TurboTax offers comprehensive support as you prepare your taxes. You'll have access to expert guidance and explanations throughout the process, enabling you to understand your taxes and your tax outcome so you can make informed choices. Plus, with TurboTax Live, you can talk to a local tax expert or CPA who can answer tax-related questions along the way and provide an expert final review before you file, so you can feel confident your taxes are done right and you’re getting the maximum refund.
You can also find a lot of tax-related information on the TurboTax Tax Tips page, including articles, common questions, and videos, to help you file your taxes with confidence.
Accuracy guaranteed
When it comes to taxes, accuracy is everything. Our calculations are 100% accurate and our software is tested and retested to ensure that you get your maximum refund, guaranteed. And with our audit support services, we can help you know what to do if you get an audit letter or notice from the IRS.
Support for complex tax situations
TurboTax offers extensive support for a variety of complex tax situations.Whether you are self-employed, run a small business, own rental properties, or have significant investments, our customized solutions are designed to meet your specific needs.
For entrepreneurs and small business owners, TurboTax simplifies managing business income and expenses with features like our Expense Monitor and self-employed deduction calculator. Our solutions make managing your investments easier, too. We can automatically import up to 10,000 stock and 20,000 cryptocurrency transactions at once, helping you figure out your gains and losses.Then we can help you use any available past capital losses to improve your tax outcome and lower your taxes.
With TurboTax, you get the tools and expert advice you need to confidently manage your taxes and maximize your savings.
Secure filing
TurboTax is committed to protecting your data. We use a variety of security measures, including encryption, multi-factor authentication, and regular security testing, to keep your personal and financial information safe. We take your privacy seriously. We comply with industry standards and regulations to help ensure your data is kept confidential and secure.
Cost
Cost is a big factor when it comes to filing taxes. TurboTax offers a range of plans from free (Simple Form 1040 returns, no schedules except for Earned Income Tax Credit, Child Tax Credit and Student Loan Interest -- 37% of filers qualify) to more comprehensive options, making it a budget-friendly choice for many taxpayers.
Should I use TurboTax or a traditional tax professional?
As you choose a tax preparation method, it's helpful to weigh the benefits of TurboTax against those of tax professionals. TurboTax stands out for its convenience, affordability, and user-friendly features, while tax professionals are often consulted for their specific expertise, often at a higher price.
If you have a complex tax situation, you may want to consider working with a tax professional. They can help you ensure your return is accurate and may even be able to help you get a larger refund. Tax professionals are trained to handle complex returns, including those with multiple income streams, investments, or business deductions.
Some TurboTax plans offer the option to consult with local tax experts. This gives you the best of both worlds: the convenience of filing your taxes online with the expertise of a tax professional. You'll get personalized advice and ensure accuracy, while still enjoying the affordability and ease of use of TurboTax.
TurboTax Tip:
If you’re unsure about certain deductions or credits, consider using TurboTax Live for expert advice or a final review before filing.
Comparing TurboTax with Competitors
If you’re considering online tax preparation solutions, you might ask, "Should I use TurboTax or another service?" It’s important to compare your options to ensure you choose the solution that best fits your needs. Here are some key considerations to help you make an informed decision.
Features
Consider the features offered by each tax preparation solution. Does it provide the tools and capabilities you need to accurately and efficiently file your taxes? For instance, if you have rental properties or self-employment income, you'll want a solution that can handle these complexities. TurboTax offers various versions tailored to different tax situations, from simple to complex, ensuring you have the necessary features at your disposal.
Pricing
Pricing is a critical factor in choosing tax preparation solutions. Compare the costs of different options, including any additional fees or charges. TurboTax offers a range of pricing tiers based on the level of support and features you need, so you can select the one that best fits your needs and budget.
Ease of Use
When it comes to online tax preparation solutions, user-friendliness is key, especially if you’re not a tax professional. Look for a solution that offers a clean, easy-to-navigate interface and clear instructions to guide you through the process. TurboTax is known for its simplicity and ease of use, making it a great option for first-time and experienced users.
Customer Support
Consider the availability and quality of customer support offered by different tax preparation software providers. If you encounter any issues or have questions, it's essential to have access to reliable support. TurboTax provides various support channels, including phone, email, and online chat, ensuring you receive the assistance you need when you need it.
Whether you prioritize comprehensive features, affordable pricing, user-friendly design, or robust customer support, there's an option available to meet your needs and ensure a smooth and accurate tax filing experience.
Frequently Asked Questions
Who can use TurboTax?
TurboTax is designed to help a wide range of taxpayers, including individuals, families, small business owners, and self-employed professionals.
Can I file my state taxes with TurboTax?
TurboTax supports state tax return preparation for most states, provided you also file your federal tax return with TurboTax. Select your state during the setup process, and TurboTax will guide you through the state-specific tax forms and calculations.
What are the different ways to file with TurboTax?
TurboTax offers a variety of ways to file your taxes, so you can choose the one that works best for you. You can file your federal and state taxes online, with desktop software, or through a mobile app. If you need help, TurboTax Live offers assistance from tax experts as you complete your return.
How do I import my tax data into TurboTax?
TurboTax makes it easy to import your tax data from different sources. You can import your W-2s, 1099s, and other tax documents directly from financial institutions and tax software programs. You can also import data from your previous TurboTax returns.
What is the cost of using TurboTax?
TurboTax offers a variety of products and prices to fit different tax situations and budgets, with prices that vary based on the complexity of your return and the level of service that you want. Additional fees apply for state tax returns. We can also help you choose the best solution for your needs.
With TurboTax Live Full Service, a local expert matched to your unique situation will do your taxes for you start to finish. Or, get unlimited help and advice from tax experts while you do your taxes with TurboTax Live Assisted.
And if you want to file your own taxes, you can still feel confident you'll do them right with TurboTax as we guide you step by step. No matter which way you file, we guarantee 100% accuracy and your maximum refund.
