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File Your Own Taxes with TurboTax
Many people get nervous or worried about filing income taxes, thinking it's a boring and confusion process. Using tax software like TurboTax (also available online) can make it much easier and quicker. TurboTax offers a user friendly interview style that guides you through the tax process.
TurboTax asks questions to see what your correct filing status should be. while that seems like a minor detail, your filing status determines your standard deductions. In 2009, they are:
- Single: $5,700
- Married Filing Separately: $5,700
- Married Filing Jointly: $11,400
- Qualigying Widow(er) with Dependent Child: $11,400
- Head of Household: $8,350
When you file your taxes, keep in mind you must have a social security number for yourself, your spouse (if you’re married), or any dependents you claim.
Business & Personal Income
If you have all your paperwork with you, TurboTax will quickly get your information in order for your business and personal taxes. Here is a list of some of the paperwork we needed for our income:
- W-2s from your job(s)
- 1099-DIV: Dividends
- 1099-INT: Interest Income
- 1099-MISC: Miscellaneous Income
This is my first year filing business taxes and it seemed so easy with the software. It's completely guided, so getting my business income and expenses entered was quick.
Deductions and Credits: TurboTax Hunts for Them
TurboTax really combs through the all the possible deductions for your return including your house, family, cars, charitable donations, medical expenses, college and education, and more.
Buying a house within the first time homebuyer tax credit's time frame means we're getting an additional $8,000 with our refund. We also have some interest that we paid for my student loans that helped us a bit.
Easy Transfer for State Taxes
TurboTax easily transfered my answers from the federal tax return to my state's return. It looks like I'll get a small refund from North Carolina (better than owing)!
Which Turbo Tax Edition Fits You?
There are different edition of the tax program to cover the different needs of customers. Decide on which edition will fit your needs.
- Free Edition: If you have a very simple tax return to file, TurboTax Free Edition is the way to go.
- Deluxe: Many people will find this a suitable option to examine deductions for families and homeowners.
- Premier: If you have investments and/or rental properties, you should consider getting this edition.
- Home & Business: We used this edition as I have a freelance business I have to do taxes for in addition to our personal.
If you want to get started on your taxes, grab your copy of TurboTax today!
How are you filing your taxes? Are you expecting a refund or do you owe taxes?
Photo Credit: alancleaver_2000