Posted on | January 6, 2015 | No Comments
TurboTax: US Residents Aware Of The Tax Impact Of Obamacare
According to a recent survey, 48% of Americans are oblivious of the requirements for reporting their health insurance condition on tax returns they file for 2014.
Given that the 2014 tax-filing season is just weeks off, An Intuit Turbo-tax Health Survey that has been performed via the web on 2,000 adults by Harris Poll suggests that Americans remain incognizant of the relation between taxes and health care.
Under Obamacare or the Affordable Care Act, Americans must show that they are in possession of good insurance,according to the law, when filing their 2014 taxes or they will be penalized.
Although the majority of Americans without health insurance, 62 percent, understand that people without health coverage will have to pay a punishment, many are not aware of the reality that the deadline for avoiding this penalty has already passed. Any health coverage secured during the current enrollment period which runs through Feb. 15, will only be applicable for returns that are completed in 2016.
According to the TurboTax Affordable Care Act product leader, Sacha Adam, these numbers show that most US residents do not recognize the connection between taxes and health care even with open enrollment.
Other information that the survey has revealed:
9 in 10 Americans currently have insurance, but people who reside in Southern US states are far less likely to have this coverage than people in any other region.
Almost half of all US residents do not know that there are deductions known as premium taxation credits that are in place to make health ins coverage less costly for families with low to medium income.
Almost 3-quarters of all US residents who bought health coverage from the ‘Health Insurance Marketplace’ intend to renew this same coverage in the year to come.
With extensive dealings in the San Diego area, TurboTax by Intuit Inc, has provided a free, web-based asset at TurboTaxHealth.com.
Posted on | August 14, 2014 | Comments Off
Anyone interested in IRS publication 17 and small businesses will be interested in the Intuit study that demonstrates how the cloud will change small businesses. Many more businesses are moving to cloud computing in some way, for efficiency and success in the long term. Cloud technology offers numerous opportunities for small and large businesses alike.
Specialized services present one opportunity for small businesses, particularly in their seamless integration into back-office functions. Cloud services represent an efficient, tailored solution for small businesses, allowing them to concentrate their efforts on their specialties. They need not spend time and resources on tasks that are not critical to their area of expertise. Personnel who understand the scope of IRS publication 17 are not otherwise required to understand all sections or be completely versed in the finer details of taxes and finance.
Virtual office configurations, sometimes called hives, offer further opportunities for small businesses. Smaller organizations can recruit talent from anywhere, and these employees can collaborate effectively using cloud technology. Highly flexible staffing creates broad opportunities for small companies.
The opportunities inherent in cloud technology allow smaller outfits to compete in a real way with much larger organizations. When small businesses need not be concerned with staffing an entire accounting department, for example, they are free to focus on what they do best. This allows them to put their best foot forward in areas in which it counts when competing for business.
In a similar way, freelancers may come together using cloud technology to accomplish things as a collective, each bringing their specific skills and ideals to the group. Cloud infrastructure and its myriad possibilities and services allow entrepreneurs to put away IRS publication 17 and focus on their business interests. Payroll services delivered via the cloud, for instance, can take an unnecessary burden from professionals, allowing them to concentrate on their industry goals.
Posted on | June 18, 2014 | Comments Off
Get tax credit this summer for your dependent care and child care costs
A lot of adults pay for day camps or child care during the summer months when they have to go to work. If you are a parent who covers these costs, you may be qualified to receive a federal tax credit that will reduce your taxes. Following are several important facts about the Child And Dependent Care Tax Credit:
1. You must be paying child or dependent care costs for at least one qualifying person. Dependent children or those who are below the age of thirteen will often qualify. To learn more about this rule, see the IRS publication 503 for Child and Dependent Care expenses.
2. These expenses have to be related to your work. Thus, you must pay for this care in order to maintain a job or look for one. If you and your spouse are filing a joint return, this rule will also apply to your spouse. A spouse can meet this requirement in any month in which he or she is enrolled as a full-time student. A spouse can also meet this requirement if he or she is mentally or physically incapable of self-care.
3. It will be necessary to have earned income, such as monies that come in the form of wages, tips or your normal work salary. If filing jointly with your spouse, this individual must also have income as well. Any month that your spouse is enrolled as a full-time student or incapable of caring for his or her self, this can be counted as earned income. This rule is also applicable to you if filing jointly. Check out IRS publication 503 for additional info.
4. If you are married you will need to file jointly in order to use this credit. This rule is not applicable, however, if you have left your spouse and live separately or if you are legally separated.
5. You could be qualified for this credit whether you pay for child care at home, at a day camp or at a daycare facility.
6. The credit is representative of a percentage of the qualified child or dependent care expenses that you pay. It can be up to 35% of your expenses, as determined by your income level.
7. The total expense that is applicable for this credit annually is limited. $3k is the limit for one qualified individual and $6 is the limit for two parties or more.
8. School tutoring costs, summer school costs and overnight camp charges are not qualified expenses. You will not be able to include the costs of care if this care is provided by a a child below the age of 19 or by your spouse. You may not claim a child as a dependent and claim the cost of any care that this child provides. There are special rules concerning dependent care benefits that employers provide.
9. Diligently maintain your records and receipts. Take note of the address, name and employer identification number or social security number of the individual who provides care. This information will need to be reported when filing your return and claiming this credit.
Posted on | April 7, 2014 | Comments Off
Let Turbo Tax 2014 guide you at tax time.
Many people debate the merits of having a mortgage tax deduction when they file their taxes.
It makes sense to work at lowering your taxable income and getting all of the credits and deductions that you are entitled to, and claiming mortgage interest may be at the top of the list for you. Some homeowners think so much of this deduction that they forgo paying off their mortgage in spite of having enough money to do so. The question becomes whether it makes more sense to keep the savings or eliminate the mortgage debt entirely.
Q: I have enough financial resources to pay my mortgage debt in full and still have money left for emergencies. The savings account pays a low interest rate, and I am concerned that paying off my mortgage and losing this deduction will adversely affect me at tax time. I feel that I budget wisely, and I am committed to putting as much money in my retirement account as possible. What would you recommend?
Singletary: I would advise you to pay off your mortgage, but with the following caveat.
Review the items on your return, and remember that a tax credit is different than a mortgage deduction. Tax credits lower your taxable income, and deductions eliminate percentages of your tax obligation. You may pay more in taxes if you do not have a mortgage, but this amount may be much lower that you would pay in annual interest on your home loan. Keeping a mortgage just for a possible tax break does not make sense in the long run.
The caution about eliminating your mortgage refers to using your savings in the current economic climate. You should consider things like your job security, your health, and your ability to find work if you lost your job before you take steps to pay off your mortgage. You cannot predict when you may need an emergency fund of available cash, and tying up your money into your home equity may force you to borrow against your home or sell it. If you can continue to save for retirement and sustain a proper emergency fund, then I would recommend taking the steps to pay off your mortgage.
Posted on | March 3, 2014 | Comments Off
An agreement between a group of private companies that produce tax filing software,the Free File Alliance, and the IRS has made it very easy to file your taxes. The companies have availed their software to be used at absolutely no charge. This has resulted in over 40 million people turning to filing taxes electronically because of the ease and safety associated with this method. When you file your returns electronically, you also benefit from being able to receive your refund faster than those who have to go through a lot of paperwork.
In order to use the Free File software, you need to visit the IRS website (www.IRS.gov). Here, you will have to choose the preferred program for preparation, printing and filing of your taxes returns.
The free File software employ numerous techniques to help you accomplish the task. The use of questions and answers is a very common technique used in order for the software to determine the tax forms to be use before it goes ahead and computes the required calculations. This way, you can also identify tax breaks and tax credits that can be claimed.
In case your revenue for the previous year was less than $58,000, you can use TurboTax 2014 or Free File forms for anything above that.
When you use Free File, you can easily and freely request for an extension of up to six months in case you are unable to file your taxes by April 15th deadline. Check IRS Publication 17 for details. However, it is advisable to file your taxes by April 15 to avoid penalties and accumulation of interest. You can eliminate the headache and stress associated with filing taxes by choosing to use Free File. It is not only easy but quick. To find out which brand you are eligible for and any other pertinent information, visit IRS.gov/freefile.
Posted on | January 31, 2014 | Comments Off
Select the right Health Insurance Products: TurboTax Health Software by Intuit makes it easy for consumers to understand different health care options offered by Affordable Care Act (ACA).
Through their tax preparation software, TurboTax, Intuit has played an important role in simplifying the tax preparation process for the American tax payers. The same group is now coming out with software, TurboTax Health that lets American consumers understand the different health insurance coverage options available under the recently funded Affordable Care Act (ACA).
U.S Consumers can get in to the online portal of TurboTax health by following the link www.TurboTaxHealth.com . This tool is free to use and provides an interactive experience for the users by providing all the required information through an interview like conversation tone. Users would be able to appreciate the various features of ACA and what it has in store for the uninsured Americans.
Turbo Tax Health helps the American consumers in choosing the right medical insurance package that fits a particular individual in all aspects. Turbo tax Health comes with a detailed guide that contains explicit details regarding the various insurance options available to choose from. This product from intuit poses relevant questions to the consumer and gets their responses. Based on the user responses, the TurboTax health lists all the recommended health insurance options to the user. Turbo Tax primarily helps consumers to get answers to the following three important questions related to Affordable Health care.
1.Ascertain whether the American consumer would be applicable for 2013 Tax rebate and buy Health insurance option at discounted rates
2.Get the required clarification on how much it would cost an average American Consumer to buy an affordable Health care plan
3.Understand the possible consequences of not taking a health insurance policy
Once the individual has decided to purchase a specific health insurance plan, TurboTax Health would automatically connect the user with the state and Federal Level Health Exchanges. Users would also be provided access to the online portal of eHealth, America’s leading private health insurance market place.TurboTax health provides detailed answers to the individual questions raised by the individual on various aspects related to health insurance buying through its social community platform, called the AnswerXchnage Community.
About Intuit Software
Intuit Software has been in the business of creating financial management solutions for small business owners, individuals and accountants. TurboTax main product range includes QuickBooks, Quicken and TurboTax. These products makes it easier for small business owners and accountants to carry out payroll processing, personal finance planning and Tax Preparation and Filing. Intuit has around 8000 employees and has its presence in United States, Canada, United Kingdom and India among other countries.