The new year has arrived, and that means tax season is almost here again! But that doesn’t mean you have to panic that the tax man cometh! Instead, relax in knowing that TurboTax has got you covered. With TurboTax, filing taxes is made easy.
There’s no need to know the ins and outs of the IRS tax code, and no need to spend money on a personal tax assistant or accountant. You just need your basic information and TurboTax does the rest for you. That’s why we like it so much, and advise you to use it for this year’s tax season.
What You Need to Know to Make Filing Taxes Easy
Stay Organized by Keeping Tax Documents Together
Under federal law, most tax documents are required to be sent in the mail by January 31st of every new year. This means that your W-2 from your employer, 1099 documents if you are self-employed, or even the 1098-E form for your student loan should be in your possession. You may even have forms pertaining to health care, such as a 1095-A from your state’s health exchange, or a 1095-B/1095-C from either Medicaid, Medicare or your employer. However, this tip remains the same: keep everything organized.
Pay Attention to Deductions/Credits that Save You Money This is critical. Deductions and tax credits are important when it comes to saving you money in taxes. You don’t want to be over-paying, and you deserve any money the government may owe you in the form of tax credits. Pay close attention to what you can and cannot claim in deductions in order to receive the refund you deserve. Below are just a few of the deductions and credits you can take advantage of right away:
Student Loan Interest
If you currently are paying on a student loan, you can deduct the interest earned on that loan as you are paying it back. Best of all, the law has been updated so that any money paid in interest by parents can also be counted towards the deduction. It used to be that if a parent paid back any money on the loan, no one received a tax break. However, that has changed
Child Tax and Child/Dependent Care Credit
Credits are a much easier way to get money back on your tax bill, as it decreases the amount of money you may owe to the government on the dollar. Up to $6,000 dollars can qualify for this credit. Just be aware that if you have a reimbursement account through work to pay your child care bills, that amount is reduced to $5,000. See how much the child tax credit is for you.
Earned Income Tax Credit
Lower income individuals need to start paying attention to this credit when it comes to filing during tax season. Sadly, however, many are not aware that is exists. It increases wages for low income workers, and can even be applied to those classified as moderate income earners. What’s more, if you’ve lost a job, received a reduction in pay, or worked less this year than in previous years, you may be eligible for this credit.
Moving and Travel Expenses
If you have moved to a new area as a result of finding a new job, or are in the military and incurred expenses moving your family from one base to another, you can claim the amount of money you used to make that move as a deduction towards your taxes. For relocating to a job over 50 miles away from your previous location, you can deduct up to 23 cents per mile of that cost.
Any out-of-pocket charitable contributions that you have made over the last year are another deduction you can claim on your tax forms, and this doesn’t only include the ones you made by check or through a work-sponsored payroll deduction. If you have spent money for a local food drive by buying non-perishable food, providing supplies for a homeless shelter, or contributed to a school fundraiser, these all count. Even if you used your car for a charity event, you can deduct the mileage from your taxes.
Use Turbo Tax for the Most Accurate Filing and Maximize Your Return
Our recommendation is that you don’t wait to file your taxes. Turbo Tax currently offers tax payers like you a free way to file through a program known as Absolute Zero. It asks you simple questions to help you get the right information filed and offers you a huge library of resources that are online in order for you to be as accurate as possible in reporting your income and receiving the tax deductions you deserve.
Choosing Turbo Tax Takes the Guess Work Out of Filing Taxes
Using TurboTax this tax season can take a load off your shoulders when you file your own taxes. There is hardly any guess work, and TurboTax makes it so easy to get your tax refund as soon as possible.
All you need are your tax documents, and the program does the rest. It can alert you to audit triggers and also provide you with advice on how to save money for next year’s tax filing. Thus, it’s a win-win situation. No matter your background, profession, or income level, TurboTax makes filing fast, accurate, and easy.