What Is TurboTax?
Filing a federal tax return is one of the most difficult tasks that one has to undergo yearly. Different agencies around the globe provide tax filing services to facilitate the process of filing a federal tax return. TurboTax software helps you file your tax returns and gives the highest possible refund guaranteed by Intuit TurboTax.
Intuit Customer Tax Group, commonly known as Intuit, acquired TurboTax – creating its online system of filing tax returns, which is available for both federal and state. TurboTax software became the most popular service for filing income tax returns and is widely used in the United States.
This software is designed specifically to assist the taxpayers in the process of filing their tax returns. It is technologically advanced as it launches new features and aces in its competition with other software. It is a step-by-step guide to the taxpayers to file their tax returns offering a user-friendly experience.
TurboTax provides accurate Information and wide-ranging filing options. It has an approachable interface with its numerous features. Intuit is the sole reason for the popularity of TurboTax software, as it is a trusted platform that makes different software used to manage to account.
Tax Filing Cost Options
Free Edition: No cost for federal and ONE state returns. It is best for simple returns like the form 1040. It provides features like easy import, error check, refunds, and deductions for dependents.
Deluxe Version: Federal Cost: $60 and State Cost: $45. It is most helpful for homeowners and maximizing deductions. It has a charitable donation calculator.
Premier Version: Federal Cost: $90 and State Cost: $45. It is best for investment and rental property owners. With accurate stock reporting and refinancing deductions.
Self-Employed: Federal Cost: $120 and State Cost: $45. It is best for independent contractors, freelancers, consultants, and small business owners.
Features And Pros
User-Friendly Interface:
TurboTax software is mostly renowned for its user friendly and ease of use. It works like an interview, where the user is asked basic questions about their general life, income, job, dependents, etc.
Due to this effective feature, TurboTax analyses the answers, and this enables them to do the math and calculate the deductions and credits that the user is looking for.
If at all the user faces difficulty in answering questions, they assist their user immediately through the chat option. TurboTax makes an effort to get the concepts cleared for the users to understand the process.
The users can also go through different sets of FAQs on TurboTax. TurboTax is always updated with the latest tax laws, and their calculations are always accurate and guaranteed.
Alongside this, it keeps track of the status and process of filing your tax return and notifies the user by flagging the areas that need to be completed.
Effective Tools:
The users are provided with either of the two options: They can import their W-2 Information from your employer. OR they can capture a picture of W-2 and transfer data to your tax return.
This specialized feature enables the users to get their data verified, watch their Information securely updated on the database, and into the right forms.
Other packages like Deluxe, Premier, and Self-Employed are still cost-efficient as per the features and tools they provide, such as Its Deductible – which is an integrated tool or a standalone mobile app that helps in assessing deduction value of donated objects, etc.
The Self-Employed package provides a neat expense-tracking feature, which includes the ability to store pictures of your receipts and track mileage from your phone and saves it in its database for reviving the Information whenever needed.
TurboTax Support Options:
The best features of TurboTax is the level of guidance it provides to its customers while filing the tax return.
- General Guidance: Video tutorials, searchable knowledge base, and online community.
- Tech Support: TurboTaxLive has offered various services and assistance through live chats and phone calls. It offers a one-on-one review with CPA and unlimited tax advice.
- Tracking status: Helps tracking the status of refund and the process of return.
- Better Customer Service: With the technological support, its customer service is par excellence by making appointments for a talk or via one-way video, etc.
Other Pros:
It is one of the leading tax software and outranked in competitions with best-selling features.
Get a quick refund within 21 days.
IRS Free File Program supports most of the tax return forms.
Allows prior-year tax return access.
Better guidance in case of an audit and customer service support with live CPAs and EAs on demand.
TurboTax lets the user access their returns and work on it across different devices.
Cons Of Using TurboTax
There is improper usage of the software that can lead to a thread of IRS letters, Audits, Amendment, and penalties, which will immediately hinder the process of filing.
It offers a lot of features for freelancers, contractors, and small businesses, but it may not be good enough for big companies with complicated situations.
It does not guarantee you the price upfront till you file your tax return, the final cost is displayed after the filing, and while the filing is in the process, it may bump up the cost.
Users may have to conduct their tax research for unknown topics and questions.
Possibility of missing deductions or over calculations.
Users may have to upgrade their deluxe program if they need to file other schedules forms, which is unethical.
The services provided are very expensive and do not prove to be cost-efficient as compared to other software.
It does not cover efficient forms under the free filing option.
The results yielded will be as per the input given by the user. The results are only as good as the input, so one has to take extra caution as their filing can be rejected due to an error.
