Table of Contents
- 1 What is TurboTax?
- 2 TurboTax 2021 Plan Overview
- 3 Program Benefits
- 4 Software Features
- 5 Best New Feature Of TurboTax 2021 Is Navigation
- 6 Turbotax Pricing Schedule
- 7 TurboTax Comparison’s With The Competition
- 8 What Is The Best Free Alternative To Turbotax ?
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Written by Mike Piper Updated for February 2021
What is TurboTax?
TurboTax by Intuit is famous for being among the best tax software programs on the market to use for new and existing customers. It’s user-friendly features for tax filers and simple to understand so assuming you have read a few we aim to guide you through why you should use Turbotax ,we will offer a verdict and compare financial products to give a better idea of the best one for you as we have spent the time to review turbotax for you . We checked the software application’s track record by preparing three various tax-filing circumstances and running each one through the online tax software program. We discovered that TurboTax’s track record is well founded when compared to H&R Block the other big heavyweight in Tax preparation.Top Tip: If you decide to buy Turbotax make sure you read about how to use a Turbotax service code to make additional savings when you purchase, the latest TurboTax discounts can be found at our dedicated page to get serious savings
TurboTax 2021 Plan Overview
TurboTax has made it easy and provides great guidance and definitions to help you comprehend what tax credits and deductions you’re qualified to get access to.In this review we aim to answer your questions and provide an overview into the benefits ,features and pricing for all the top plans offered for this tax year. TurboTax has one of the most comfortable tax programs to navigate, and, in our experience, it was easy to return and evaluate info we got in to guarantee we had not accidentally presented errors.
TIP: Wanting to know which turbotax do I need ? Find out here
TurboTax online tax preparation software helps you enter the information you need to file your return documents accurately. It can be particularly handy if you don’t completely comprehend your tax return or want to compare it to last years, plus it helps guarantee you input the proper information in the best place. If you prefer to enter info in yourself without assistance, TurboTax may not be the best choice for you as it does not use a way to achieve this. However, they do give you some options, such as enabling you to pick in between essential reductions or itemized deductions. Ok, let us delve a little deeper into each of the top Turbotax products and review them all side by side as we go.
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The every level software provides you additional access to tax forms and custom prompts that offer you assistance in filling out your paperwork. However, every version comes with extra perks worth further discussion in detail, such as:
If you’re working for a rather large employer, then chances are TurboTax has the power to find your individual W-2 information automatically. This won’t work for every employer, but it will for many and is a convenient feature of the system.
E-filing is something that can spare you the crazy long lines in early April post offices. Turbotax will make it even easier to get your refund faster, too. In typical cases, you can e-file state and federal tax documents both, although filing your state taxes might cost even more.
You have online access to your tax forms . That’s handy if you’d like to fill them out a little at each time, instead of doing it all in one sitting. It also makes things easy if you need to print off more copies of your various tax returns in the future should you need them for a home purchase or other significant situation.
These are pop-ups in the software which show you just why particular things are how they are when it’s time to file taxes.
The Paid Levels Include Additional Support Benefits
If you find yourself in a more complex tax situation, then you might be best off with the tier of the Deluxe. Most notable among the additions this plan offers are added income support and itemized deductions.
Deluxe has everything all the previous plans have, plus:
All of your previous tax returns are still accessible to you. Miscellaneous income support: the Deluxe lets you file unlimited amounts of Form 1099-MISCs. However, unfortunately, it won’t cover the self-employment tax that contractors or freelancers have, who need to submit the Schedule C.
A customer, support phone hotline, is also included. The cost for Federal Deluxe is $34.00, and the State is $36.99.
TurboTax Premier is when it starts to get expensive. When you get Premier, Intuit starts introducing support for things like schedules B, D, and E, which makes it an excellent tier for more complicated tax scenarios. If you get investment income, rental income, or other kinds of non-wage income, then this plan is probably how you want to go.
Unfortunately, it won’t cover the self-employment tax that contractors or freelancers have, who need to submit the Schedule C.
Premier has all the things the previous plans have plus
Schedule B support: which is a requirement for those with more than $1,500 from dividend and interest income.
Schedule D support: This is what covers your capital gains and also losses from selling various assets.
Schedule E support: This is necessary if you need to report income from your rentals or other similar properties. The Federal version of TurboTax Premier costs $54.99, and the State one runs $36.99.
Turbotax self-employed handles the pain of self-employment tax if you’re not ready for it. It’s the highest tier of TurboTax and is offered via Quickbooks, and it’s there for freelancers, business owners, contractors, and others who are self-employed so that they can move through tax season as quickly and efficiently as they possibly can without the fear of a tax audit disrupting your life.
It should be noted that this tier is not just among the most expensive options that TurboTax has, but among all tax software options across the market. On the other hand, if you need to file a Schedule C for your self-employment, then you can save quite a bit of time paying for something so easy and intuitive concerning usability.
Turbotax Self-Employed has all the things the previous plans have, but also comes with:
Support for Schedule C and self-employment tax returns. This is where TurboTax does a premium job in streamlining the Schedule C or C-EZ process. It’s a definite must-have for any sole proprietor, contractor, small business owner, or freelancer. The Federal version of TurboTax Self-Employed costs $79.99, and the State version is $36.99. For ease of use and quickbooks integration you can do better. See our range of Quickbooks discounts to save up to 20%
– Let’s start with the most popular edition by far, Deluxe is used for home and medical expenses and can be used on either Mac or PC. It’s ideal for someone who has tax deductions and credits. Consumers most likely to benefit from this version are those who need to itemize.
– The main feature of this program is that if you own stocks or other investments, then this is the program for you. Get our exclusive service code at the top of this page to save 10 to 20%. The Premier version imports investment information, including cost basis. This makes it easier for you to report your gains and losses accurately. You can even use this to manage your rental property income and deductions.
– As the name suggests small business owners in the small to medium range and landlords should use this program.
- Federal Free Edition – Great for 1040EZ/A tax returns, and still free to file taxes or Federal taxes. No codes are needed with this program as its free anyway.
For the 2nd straight year, you can submit your federal 1040EZ/A and state taxes free of charge with TurboTax. The 1040EZ/A is suggested for those with reasonably easy tax scenarios, you’ll need Absolute Zero if you earned less than $100k in 2018, ( figure was the same in 2016) do not own a home or rental residential or commercial property, didn’t sell financial investments, do not hold an organisation or have 1099 income, and do not have any significant medical expenditures. But the software designer, Intuit is pretty transparent about its inspirations– it merely hopes that when your tax scenario becomes a little bit more hassle-free and you get a refund.
- Turbotax Canada – For those Canadians among us this is where you can find discounts for Canada for up to 10% off, hopefully, we have covered you with some great discounts as well.
There isn’t a separate version for members of the military but I thought it a good idea to put a link to the full review customer ratings we wrote for it since we love the guys and gals who protect us every day
Did you know it may be possible for you to get some major tax breaks if you were a student in the past year? We reviewed a whole raft of things for you to check out
TurboTax and Amazon are working together to offer an excellent side promotion this year. If you elect to spend a portion of your federal tax refund on a gift card for Amazon.com, you’ll be given a 5 to 10 percent bonus It’s essentially free money!
While this is the most expensive option with TurboTax Live, you get immediate access to a tax expert so that you can file with complete peace of mind and confidence no matter how tricky your situation is. An expert who is either certified public accountant (CPA) or enrolled agent (EA) will do a final review of your tax return before you file it. This brings the cost of TurboTax Live to $149.99 for federal filing and $36.99 per state but is well worth the price if you can afford it for total satisfaction.
A Tax Experts Advice
With paid levels of the software like TurboTax Live you get to talk to human CPA tax agents at any time through a chat feature. Which could be very useful if you have a question that the already robust forum community of can’t answer if you were ever subject to an audit. Of course, when you pay for TurboTaxLive, you get even higher levels of this sort of support from a tax agent with more experience.
If you are concerned about a tax audit, then don’t muck around buy a paid version and get your situation reviewed before the IRS does it for you at a considerable cost. The audit defense ( or audit support ) costs around $45 and needs to be purchased prior to filing , you can not go back and request it after the fact so if you have any activities you think may cause a reg flag for the sake of $45 get it now and have a real tax epert in your corner
If you have used Turbotax in the past, you can now easily find all your personal information as its saved in the software from the last time you used it. So updating any new details is a breeze and this will cut down the amount of time required to get your returns filed.We think that is a great innovation. Easy import options allow TurboTax to connect with a variety of banks and investment institutions to import 1099-INT and 1099-DIV forms, a couple of options would be Chase bank Discount and Bank of America Discount
Easy import options allow TurboTax to connect with a variety of banks and investment institutions to import 1099-INT and 1099-DIV forms
Turbotax Pricing Schedule
|Free edition||Turbotax Federal: $0
With Turbotax Free you to file a 1040EZ or 1040A at NO cost
|Deluxe||Turbotax Federal: $59.99
The software ensures that your taxes are done correctly and you receive your maximum refund
Stay updated with your federal and state tax refunds status, with Premier you always know where you stand.
If you are an entrepreneur who runs a business or are in a partnership, S Corp, LLC, or Trust, the TurboTax’s Business Edition is something you should consider trying.
|TurboTax Live||Federal: $179.99
Get a one-on-one with a CPA who will review your personal tax situation before you file, don’t miss another rebate and don’t make a single mistake
TurboTax Comparison’s With The Competition
|Tax Program||Plans Available||Price For Federal||Price For State|
|TurboTax||Free, Deluxe, Premier, Self-Employed, TurboTax Live||Free: $0 Deluxe: $39.99 Premier: $59.99 Self-Employed: $89.99 TurboTax Live: $149.99||Free: $0 Deluxe: $36.99 Premier: $36.99 Self-Employed: $36.99 TurboTax Live: $36.99|
|H&R Block||Free, Deluxe, Premium, Self-Employed||Free: $0 Deluxe: $34.99 Premium: $54.99 Self-Employed: $74.99||Free: $0 Deluxe: $36.99 Premium: $36.99 Self-Employed: $36.99|
|TaxAct||Free, Plus, Freelancer, Premium||Free: $0 Plus: $25 Freelancer: $39 Premium: $51||Free: $0 Plus: $37 Freelancer: $37 Premium: $37|
Related : See Our TaxAct vs TurboTax Article , Which Should You choose ?
- Our latest TaxAct Review for 2021 explains who needs Taxact and why
What Is The Best Free Alternative To Turbotax ?
If money is your main issue or its very tight then we recommend you take a look at Credit Karma. Our full Credit Karma review will give you the reasons why its a great tax software program and the best is its free ! Yes that’s right Credit Karma is 100% free to use for state and federal returns .
What Is The Verdict ?
Turbotax offers a vast range of features and options at good value for money, and most Americans can use it to simplify their tax position. We like it and use it ourselves and think it deserves a generous 9/10 for this review which is great ratings. We’ll keep updating this review throughout the year as things change so make sure you bookmark it or share with your friends. In the meantime if you have read this far down thanks for your time, and we hope you managed to get some useful information that will help you reduce your tax position this financial year, after all, it’s your money so make sure you get to keep and spend more of it the way you want to before the government takes its pound of flesh away.
My Analysis And Advice
This is a service that analyzes your tax history from the year so it can explain to you how to take steps which maximize your tax refund for the coming year.
How Long To Get My Turbotax Refund?
Almost always within 3 weeks of your return being processed and often within a week is what the IRS states. Once you’ve filed your return, you can track its progress with the Where’s My Refund
So if you are asking “why is my refund taking so long ?” and “when can I expect my refund ?” then click that link above and see why there may be an issue you need to address.
Are The Software Fees Deductible?
The short is YES bit the long answer is NO, confused by that? then let me explain in a little more detail. The total number in the miscellaneous expenses category (which includes tax prep fees) that are allowed to be claimed is 2% of annual income, so when you add the fees to other miscellaneous expenses there usually ends up being no actual deduction as you will already be over that threshold anyway. Make sense? I hope so
How To Get Your Tax Refund
When you have completed filing of your income and expenses and determined there is a refund available you can decide on direct deposit, prepaid debit card, or paper check as the three main options available to you. But what is the fastest method of payment refund I hear you ask? And that is s to e-file and choose direct deposit for your return. And if you are not in any hurry why not apply the refund to next years tax owing if you think next year will be a bumper year. It’s also possible to use your return to pay for the software cost if you wish.
Is the Cost Worth the Refund?
Yes absolutely it is .The price is very low, the content is top notch and the support is fast and easy to get. Plus no guessing about what is and what is not a tax deductible item
What’s the difference between Online and the Download Version ?
Top tip check out the TurboTax Service Code Costco offer for download version
The two are very similar and both cover most tax situations for most Americans, however, the majority of people choose the online version for its simplicity and ease to file. Some major differences between the two include
- If you file online, Turbotax stores all of your information. If you use the CD/Download, you need to save and store your own tax return. Not so good for future updates which are taken care of automatically online.
- With TurboTax Online, you can work on your taxes from any computer or mobile device with Internet access. With the CD/Download, you install TurboTax on your computer and you can do your taxes without the Internet. Not so good if you suffer a computer failure during the year and lose everything.
Turbotax Federal Free Edition – It is Really Free ?
TurboTax was not just my leading general pick, but my choice for the finest free tax software application. They have made it easy for users to begin with its prominent free Federal Free Edition and federal free e-file options and just upgrade to the paid version if they really have to. The most significant benefit of the Federal Free Edition is its Absolute Zero cost warranty. If you’re filing a fundamental 1040A or 1040EZ type, you can file both your federal and state income tax returns for free, a service unmatched in the market by anyone else. The most significant drawback to Federal Free Edition, which could cause some headaches, is that you cannot import a previous year’s income tax return, even if you submitted.
Final Word on Turbotax
If you have read this far then you are still undecided on Turbotax, so all I can say is that it is a solid robust and cheap option so do yourself a favour and get it today for hassle free tax filing this year.
Just get Turbotax and save yourself the hassle of doing taxes in 2021. Simple as that !
If you have feedback or questions you can contact our experts directly .