Tips to Get TurboTax Discounts

Tips to Get TurboTax Discounts

Turbotax software comes in various different versions like Premier, Deluxe, etc. Turbo tax software is used to prepare both State & Federal Income Tax Returns. One of the best things about the software is that it is regularly updated once the IRS completes any revisions to the tax forms. This software is widely used because of its user-friendly interface and its step by step assistance to the tax payers.

Most of the people today are using Turbo tax so that they can prepare their taxes on their own. It’s very popular because it allows payers to easily enter the required information and calculate the amount of the tax that you are required to pay. Turbo tax also helps in reporting the investments in bonds and stocks. It also helps in setting up the information about properties like rental properties or any other. It helps in maximizing your deductions as it helps in determining what items can be used for deductions.

To get Turbo tax discounts, you will have to buy it at a website that offers a discount. The website must also offer various versions of Turbo tax so that you can choose the best one for you. Simply getting one version on the website won’t be useful for you. The site must offer return shipping as well. To such sites that will offer discounts you need to search them online, type in the keyword phrase in the search engine and look for different websites that sell Turbo tax at a discount and select the website where you can buy turbo tax.

Getting Turbo tax discounts takes efforts as well as time. Searching for Turbo tax discounts can be daunting task but once you get it filing tax return becomes much easier and faster.

Tax Credits Available for Students

Returning to school can be a huge decision.  It is not only extremely time consuming and stressful, it is also a big financial burden.  In order to pay for college tuition, room and board many individual take out hefty student loans from
private loan institutions and the government without any consideration on how these loans will be paid back in the future. One way to either avoid these loans or pay a portion of them back while you are still in school is to take advantage of the tax credits and deductions offered to individuals in pursuit of a higher education.

The first education credit that is offered to students is called the Hope Credit or American Opportunity Credit.  The full
credit, generally around $2,000-$2,500, is available to students whose modified adjusted gross income is below $80,000 as a single individual or $160,000 as a joint tax filer.  Another stipulation for this tax credit is that you must be enrolled in an accredited undergraduate college or university at least half time in order to take the credit on your yearly taxes.

Another credit that may be beneficial is called the Lifetime Learning Credit, which is worth approximately $2,000 a year.  The difference between the Lifetime Learning Credit and the Hope Credit (American Opportunity Credit) is that while the Hope Credit can only be taken for undergraduate studies, the Lifetime Learning Credit can be taken for any
“higher education courses” you take throughout your life.  The two credits cannot be taken during the same tax year, however, and it is recommended that you take the credit that offers you the most benefit for that particular year.  Additionally, eligibility for the Lifetime Learning Credit is based around your modified adjusted gross income, which must be below $50,000 as a single individual or under $100,000 as a joint filer.

Finally, if you are either finished with school and making student loan payments or are still in school but making payments (either interest only or regular payments), you can deduct the interest you have paid on your student loans on a yearly basis up to $2,500.  In order to take the maximum allowable deduction of your student loan interest on your yearly taxes, your modified adjusted gross income must be below $60,000 for a singleindividual and $120,000 for a joint filer.

The IRS, your local financial consultant, or a tax professional can offer you more detailed information about the credits available to you and how they can be claimed on your yearly taxes.

Author’s Bio: Val Anne is an in-house writer from Franklin Debt Relief , a company specializing in programs for people with high credit card debt.

Self Employed? – Here’s 5 Reasons Why You Need An Accountant

For the self-employed, tax time can be an entirely different experience than for those who are either employed by another company or own their own business. Being self-employed means that you are technically both an employer and an employee, and are at times responsible for paying taxes on issues that affect both.

Taxes are already complex enough for the average individual, but that situation is exacerbated by your current status. As a result, it may be wise to talk to an accountant, as they can not only find special deductions and benefits, but save you the time and anxiety of having to figure out your tax status.

1. Special Rules

In the United States, every working individual is responsible for paying tax for Social Security and Medicare. However, the amount of tax paid is typically split between the employer and employee, whereas with a self-employed person they are responsible for both. This is just one of a number of different rules and forms that change as a result being self-employed. Having a certified accountant will help you sort through the brambles and not have to worry about an audit.

2. Loopholes and Tricks

Regardless of what type of situation you are in, it’s never a bad idea to consult an accountant as they are far more educated on how to maximize your tax return. Every year the government passes legislation or makes changes to the tax code that affects businesses of all types. Special credits and other tax friendly programs may also be introduced but not publicized to the general public.

Accountants are paid to keep abreast of such situations and how they apply to their various clients. In fact, many of the special tax benefits and tricks apply specifically to those who own a business, and having an accountant experienced with the self-employed may end up saving you far more than the cost of the hiring one.

3. Time

Even if you are willing to sift through the morass of new forms, rules and special deductions and exemptions, the one thing you will inevitably lose is time. Paying an accountant to do your taxes will save you time to concentrate on running your business. Depending on how much income you can generate with that time, it may be that it’s more cost effective to earn money to pay for an accountant than do your taxes for free.

4. Advice and Audits

Accountants can also be relied upon for advice as to how to avoid certain tax penalties or qualify for specific deductions or exemptions. For example, as you can deduct equipment purchases over a single year or over a extended period of time, you can consult them on which deduction works best for your business. If you are by chance audited, a qualified professional can assist you with the process.

5. Online Alternatives

For some self-employed individuals, it can be very difficult to pay for an accountant given their limited financial resources. Relying on an accountant, however, doesn’t necessarily mean relying on a living person. Accounting software can be just as adept at finding the best deductions provided you give it the information they require.

As a result online software is best reserved for those that have relatively simple situations, especially self-employed individuals who will likely be using the standard deduction for much of their taxes.

John Hill writes on behalf of Public Liability Insurance dot org an online resource for business insurance including childrens liability insurance.

An End To Charity Tax Breaks?

For a long time those who have contributed to charity have been able to see a benefit in terms of a lower tax bill. For British taxpayers this era may be coming to an end with Chancellor George Osborne seeking to close what he sees as a loophole.

With the current government having come to power partially on a platform of “the big society”,  a move to curb philanthropic donations seems slightly surprising. The idea of the “the big society”, as far as anyone was able to divine, was to replace aspects of the public sector with work by the charity and voluntary sectors.

It is not proposed to end tax relief for charitable donations altogether, but rather for there to be a cap put in place. There has been criticism of this proposal however, with many pointing out that wealthy individuals are donating much more to charity than they are saving on their tax bills.

Dodgers

There can be little doubt that tax chiefs see a problem in the way that things stand at the moment. Through canny accounting the amount income tax paid some of the wealthier Britons is thought to be just around ten percent.

While low tax returns are obviously a concern for the government, it is far from clear that this is a problem either for society or the economy at large. For instance large amounts of money are given to fund medical research and to help vulnerable groups. At the same time the argument against the 50p tax rate was that it is a force stopping the job creators from creating jobs, and surely that would also apply to any measure designed to increase the tax take from the wealthy.

Tax Planning

Minimising the amount that you pay in tax, within the law, is perfectly legitimate – by definition.  Planning your tax affairs in a way that makes sense for you does not make you a ‘cheat’ or a ‘tax-dodger’. Indeed if you cannot even be bothered to take the allowances you are entitled to with regards to your own money, should you be trusted with other peoples, for instance in a work situation.

It is perhaps true that the tax system is too complicated. It is very hard for the individual to avoid being ripped off by the taxman. In order to get the best deal it is often necessary to involve accountants and other professionals who are knowledgeable in the field.

Whether Osborne’s reforms go through as planned or not the British tax system, like all others, will continue to have its idiosyncrasies, and there will continue to be ways to avoid being stung for the full whack when it comes to tax time. Hopefully also charitable donations (which have fallen in recent years) will continue to be made.

Pamela Chimbonda wrote this content on the behalf of Adam & Co. who specializes in private wealth management.

Will There Be Tax Cuts?

In the struggling economy more and more attention is being given to budget deficits. The amount of debt is staggering and according to recent reports it does not appear to be getting any better. Many states have suffered declines in revenue not seen since the last World War. A record number of states had to combat deficits by cutting costs wherever they could and raising taxes to boost their revenue. A frightening statistic reveals that between 2009 and 2011 a mere eight states implemented tax cuts. 24/7 Wall St. investigated six states that reported a significant increase in revenue. They found that cutting expenditures rather than bringing in higher revenues was more important to try to combat the deficit.

While the media focused on the increase in revenue from taxes, an expert, Tracy Gordon, revealed that the figures actually showed an increase less than those during recessions in previous decades. However, it is possible that the government may misinterpret those figures and decide to increase 2012 taxes yet again. Many government services had to be cut and this was true even in the states which reported high revenue. Unfortunately those cuts affect education, public health, the elderly and the disabled. It appears that simply cutting costs and raising taxes is not a solution to the economic crises, but with a lack of options it seems unlikely that we will see tax cuts in the coming year. Instead 2012 taxes will likely be raised and government services will suffer more cuts.