Here’s the good news. There’s a personal income tax software that’s actually very easy to use. TurboTax is great for anyone that’s anxious and worried about filing their own taxes online.
The Perfect Personal Tax Software For Everyone
TurboTax is an amazing personal income tax software. It’s perfect for everyone. This video shows just how easy it is to use this particular personal income tax software.
“We’ll show you guys how to use the software. We’ll show you exactly how easy it is to prepare your return online and see what your refund might be as well.”
Given this guarantee, TurboTax is definitely worth looking into. According to Harbor Financial, it’ll just take less than an hour to file taxes online.
“When you prepare your return online you normally can do that return in an hour or less. This is gonna be a lot less time, a lot easier than preparing your taxes the traditional way by paper if that’s the way you’ve always done it.”
TurboTax is just so simple to follow. One good reason why it’s best to prepare taxes online is the fact that there are less chances of errors.
“The chances of errors go way down when you prepare your return online. It’s gonna catch any mistakes you make and it will not allow you to submit that return electronically until you fix those errors …”
So aside from saving a lot of time, there are less chances of making a mistake with Turbo Tax.
“Even if you know nothing about taxes and have never filed, TurboTax makes it very simple. TurboTax is made for all kinds of taxpayers….it’s really a program for everyone.”
That’s pretty much enough for anyone to have confidence in using this particular personal income tax software.
Here are the easy-to-follow instructions.
Go to harborfinancialonline.com and choose a link to get to TurboTax
Click Deluxe or whatever suits you
Fill out the information on the first page
Work on the W2 by filling up the boxes
Go to Deductions and click on any of the items on the page
Fill out the forms again
Click on Federal Review to do an error check
For state tax, pick a state
This personal income tax software really saves a lot of time and there are chances of getting a bigger tax refund.
“… the instructions of TurboTax are very simple, just click through the boxes. It’s very laid out, easy to understand questions.”
Considering the easy-to-follow instructions of TurboTax, it’s definitely worth filing online.
Let’s face it … paying personal taxes is much easier than calculating it. It’s just so complicated to calculate it. We never know what numbers to put in. At the end of the day, we just want to pay it off with the hope that all the numbers are right.
A Quick Glance At Personal Income Taxes
I came across this video (scroll down to the middle of this article) about personal income taxes. I found it very useful. In my opinion, it’s good to have a good overview even if most of us are already using some kind of personal income tax software.
The video visually explained how a personal income tax return is calculated. It’s a great overview and I think it’s must that we all know what the common calculations are in our personal income tax returns.
Where The Money Goes
Soon as we receive our take-home pay, our employer had already deducted a portion of our income for the following:
The total amount of our take-home pay is, no doubt, less than our total salary. At the end of the year, we will receive a tax form. This tax form will show our withholding tax.
“… receives a tax form that shows how much money was taken from his salary and sent to the IRS. That amount is called withholding.”
The Calculations Start
This is when the calculations start. We start calculating as to how much we actually owe the IRS. Then we compare the amount of withholding that was deducted from our salary.
“These amounts are often different because each person has a unique financial situation.”
If we owed the IRS more than what our employer had deducted from our salary, then we would have to pay the difference. But if we had owed the IRS a much smaller amount compared to what was deducted from our salary, then we would receive a refund.
There are specific calculations involved in this stage.
“Now, let’s take a closer look at the specific calculations that determine the amount of income tax that we owe.”
Here are all the exclusions from the income we had received during the year:
Employer-paid health insurance
Student loan interest
“These items are not considered in calculating your income tax.”
Excluding all that, we get our gross income
The Taxable Income
“First you’ll take deductions for AGI. For example, you can subtract 401K Contributions and expenses of a business that you own. This will give you your AGI or Adjusted Gross Income.”
After taking deductions for AGI, we then take deductions from AGI. We choose between Standard Deduction or Itemized Deduction; whichever amount is greater.
“Itemized deductions are those items that you specifically list. You can subtract charitable contributions, medical expenses. and mortgage interest. You will provide information about your spouse children and other dependents. Then you will subtract your personal dependency exemptions based on how many people you care for in your household. You have arrived at a number called taxable income.”
Determining Our Personal Income Tax
The computation at this point is determined by the marginal tax rate. This means that the tax rate varies in each level of our income. The higher the income, the higher the marginal tax rate is.
We can reduce our taxes by taking credits. These credits are following;
Earned Income Tax Credit;
Foreign Tax Credit;
Education Tax Credit; and
Child Care Credit.
At this point, we can get the amount that we owe the IRS. We should compare this amount to the amount our employer had withheld from our pay. This determines if we should pay more taxes or if we should get a refund.
At a glance, those are the calculations needed to come up with the right number for our personal income tax. While it’s good to know how to calculate it, I would much rather rely on some kind of personal income tax software that can guide through each step. Honestly, I feel more comfortable and secured in using a personal income tax software to monitor my financial responsibilities. I’m just better off with it.
Running a small business is not easy. Aside from making it work to earn a profit, you have to make sure you’re financially sound to sustain the business. Hence, keeping track of the financial part of it becomes an important part of your daily operations.
But this is not an easy thing to do. Running a small business is hard enough, keeping track of the finances just makes it a lot more complicated.
This is the reason why Tawni Griffith Rayman, of Griffith CPA Firm, recommends QuickBooks for small businesses.
“My biggest recommendation is QuickBooks. QuickBooks is put out by a software company called Intuit.”
Intuit is a tax software company founded in 1983. Ten years after its founding, it went public. Aside from QuickBooks, Intuit boasts of the other tax software products that guarantee to simplify lives by providing solutions:
Lacerte (Pro Series for Accountants); and
Intuit Financial Services.
She adds that:
“QuickBooks has the one of the hugest markets for all small business and software. Within that software, they can keep up with all of the double entry accounting that you’ve heard of in accounting classes.”
This tax software does it all for you.
“So instead of having to do the double entry, it does it all for you.”
All you have to do with this tax software is to enter all your checks and deposits. At a glance, QuickBooks can do the following for you:
Reconcile your bank accounts;
Keep up with your assets, equipment, receivables, and payables;
It can keep up with your inventory;
It can give you a snapshot of your balance sheet; and
Generate reports in graph formats.
QuickBooks can help you a lot by monitoring your financial standing. This innovative tax software can get you the real numbers so that you can understand your small business more. There’s just not doubt that it can help you build your business.
Interestingly, QuickBooks has an online version. QuickBooks Online can be accessed from any computer. You can access this from any computer, anywhere and anytime. You can save a lot of time with QuickBooks Online. This particular online tax software comes in three plans:
QuickBooks Online Simple Smart;
QuickBooks Online Essentials; and
QuickBooks Online Plus.
There is also a free mobile apps that comes with QuickBooks Online.
You also have a lot of options with QuickBooks since it comes in various versions. For example, it comes in industry-specific versions like the following:
QuickBooks for non profit;
QuickBooks for contractors; and
QuickBooks for professional services.
According to Tawni Griffith Rayman, QuickBooks “is the way to go if you want to be on the right path from the very beginning.” She also adds that it’s best to consult with an accountant from time to time.
“If you do use QuickBooks or any other software for that matter, I’d highly recommend that you have a relationship with an accountant so that you can have a review every quarter or so.”
This is to make sure that you’re doing everything correctly. Tawni adds that getting the right numbers can help you make better business decisions.
While running a small business is hard enough, you can leave the accounting part to this tax software called QuickBooks. QuickBooks can keep track of all your records while you concentrate on growing your business the right way.
Taxprep has a wide array of products that offer the most advanced programs in tax preparation. The Personal Taxprep is one of their most sought-after personal income tax software. Most recommended for accountants that prepare individual tax returns, it maximizes the distinct income tax scenario of any client. This personal income tax software saves a lot of time, improves productivity, and boosts earnings during T1 season. The Personal Taxprep simplifies the whole process of tax preparation.
One great option of the Personal Taxprep is a service called EFILE. This is a quick, easy, and paperless process that can save a lot of time and money. The EFILE option conveniently manages electronically filed income tax returns. Taking advantage of the EFILE option can make the whole tax preparation process a lot easier.
First Thing’s First With The EFILE Option
The first thing to do is to check all the files for EFILE eligibility. To do this, go to Prepare Profile Situation and Office Situation. Scroll down to the EFILE section and check the boxes and options needed to transmit all returns.
Choosing An EFILE Preference
Soon as everything is all set for EFILE eligibility, go back to Tax Return. Go to Tools, Options, and Settings in the Electronic Service Section and select an EFILE preference. Enter Identification and check other options.
The Forms Manager
There are a number of EFILE forms. They are the following:
Electronic Filing Worksheet: This form keeps track of a particular client.
EFILE Information: This form has all the information related to the transmission of a particular file. The information on this form can be filtered and added to a report.
EFILE Summary Form: This form has a summary of all EFILE data fields.
The EFILE transmission is easy. In the Client Manager, select from the EFILE Eligible Filter to run a report on all the files that are all set for online transmission. In the Workflow Management Filter, it’s possible to add other reference points such as Return Status and EFILE Status.
Go to EFILE Eligible Filter to see all the files that are all eligible for transmission. Hold Shift key down and select the number of returns and right click to transmit online.
Once the transmission is completed, go EFILE Tracking, click on EFILE Log to see all the returns that were transmitted. To Archive all the files, just do a right click.
The Most Recommended Personal Income Tax Software
The easy navigation of the Taxprep makes it the most recommended personal income tax software for accountants. To add to that, the EFILE option of the Personal Taxprep makes it very easy for accountants to take care of their clients’ taxation returns.
Storing and Backing Up All Your Tax-Related Files
As part of your preparation and protection of all your tax files, it is important to keep in mind that you use secure cloud-backup solutions. Based on our experience, nothing beats the peace of mind that you can get when you know that all your tax-related files are safely and securely tucked away “in the cloud” to make sure that no theft or disaster may harm them.
As much as tax is a scary word, the task of doing it is horribly daunting. Taking that in consideration, you probably hire a certified public accountant to do your taxes.
That’s not surprising at all. According to the moneywatch (see video below):
“Sixty percent of Americans still have living, breathing tax professionals prepare their returns.”
Only 20% of Americans file their own taxes using a personal income tax software.
There’s no doubt that hiring a tax professional is more costly. But you have no choice. In your mind, you’d probably just settle for a tax professional that’s a little over the budget than a personal income tax software that can save you a couple of dollars. After all, not everybody has a knack to understand the whole tax system. Even Albert Einstein admits that the hardest thing to understand is the income tax.
But the good news is that there is a personal income tax software that can actually make it easy. It can guide you easily and give you a good refund.
Perfect for first-timers, the Turbo Tax software is the easiest to work with. Kate Ashford, one of the 20% of Americans that use a personal income tax software, has this to say about Turbo Tax.
“If you really feel like you want a little bit more hand holding, it might be worth the extra money to go with Turbo Tax.”
Turbo Tax comes in five versions. These versions are the following:
Home & Business ($74.99)
The variety of versions make it easy for you to find the right product, meeting all your specific needs. So maybe you own a home, a couple of bonds, or a small business; Turbo Tax has the right product for you.
This is definitely the best personal income tax software, especially if you are anxious about filing your own taxes for the first time.
While it claimed to be an easy software to work with, TaxAct was just not that easy most especially when compared to Turbo Tax. TaxAct is an online-based software. This personal income tax software comes in three versions:
Deluxe Federal ($9.99)
Ultimate Bundle ($17.99)
This software seems reasonable enough to spend on considering the fact that you pay only when you file. But here’s the downside of the TaxAct:
According to Kate Ashford:
“If people are fairly familiar and have pretty simple issues I have no problem with TaxAct.”
With that description, it’s definitely not recommended to a first-timer.
The OLT software just didn’t cut. Kate Ashford went halfway through it and quit. If she can’t handle, what more a first-timer?
Then comes the certified public accountant. Nothing beats the human touch of this tax professional. It can definitely save you a lot of stress.
But in spite of that, Kate Ashford recommends using a personal income tax software. She recommends that you can go for a couple of years, filing taxes yourself. Then you can go for a check up with a CPA from time to time.
That sounds like the best way a personal income tax software can work for you. And knowing which software works well, now is probably the right time to do it yourself.
You are taking a bold move by seriously thinking about filling your own income tax. But no matter how anxious you could be feeling about this, it’s always an advantage to understand how the tax system work. In the long run, it can save you a lot of money.
For starters, you’d probably want to know more about the top ten tax software solutions available in the market. Choosing the right tax software is very important. After all. you will be doing it yourself.
Below are what we think are the top 5 tax software:
Out of the list of software, TurboTax gets an overall rating of 10. The rating was based on accuracy, ease-of-use, and help and support. According to Staples TechTV:
“TurboTax is one of the most popular online tax preparation and filing software solutions. To give you an idea of just how big it is, last year alone more Canadians filed with TurboTax than all the other tax filing software products combined. ”
Although it is considered to be the most expensive tax software, it’s definitely worth looking into. Skimping on this kind of software is not a good idea. The easier the software is, the better. It wouldn’t hurt to pay the price for it.
A Brief Background
TurboTax is owned and operated by Intuit, Inc.
“Owned and operated by software giant, Intuit, TurboTax is backed by a solid company history of almost three decades and offers its own tax filing service with basic, step-by-step guidance online.”
Given the solid background of this company, it’s worth giving it a try.
The Six Versions Of TurboTax Software
Basic: This covers the basic tax returns of Canadians. It includes updated government forms.
“So your simple returns will be up to date.”
Standard: This version is perfect if you are purchasing a new house, “starting a family, and contributing to RRSPs and pension plans”. It is also perfect for graduating students that are paying back their student loans. Staples TechTV adds this:
“It’s a version appropriate for most Canadians as it includes the features needed to file a return if you have a mortgage, if you gave to charity, or if you have RRSPs or tuition to claim.”
Premier: This is usually the tax group that hires a professional accountant. But the good news is that the Premier TurboTax software can make it easy for you.
“TurboTax Premier is the ideal tax preparation software for Canadians with investment and rental property income.”
Suit: This version can help you “track your money and get your biggest refund”. You have two financial tools in this particular TurboTax software. These tools are the Quicken Home & Business 2014 and 12 TurboTax Premier returns.
“If you’re looking for a great deal to manage your finances year-round, to get your biggest refund at tax time; then you’d want to consider TurboTax Suite. It combines two popular financial tools in just one package.”
Home & Business: This version is perfect for the “sole proprietor” or the “self-employed”.
“This version is ideal for preparing personal and self-employment taxes, including sole proprietors, consultants, contractors, and unincorporated businesses.”
Business Incorporated: This is the ideal tax software solution for any incorporated business.
“The ideal solution solution for filing T2 corporate tax return. The active auditor feature double checks for accurate calculations and flags errors to reduce audit risks.”
Two Great Features Of TurboTax
To help you ease the feeling of uncertainty of doing it on your own, TurboTax features the following:
• The Optimizer Tool
• The Tax Pro online.
The Optimizer Tool “shows you how different RRSP contribution amount affect your refund or tax owing to determine the optimum RRSP contribution amount for you and your spouse”.
The Tax Pro online can help you anytime.
“If at any time you ever get confused while doing your taxes, like many of us can and do, get free tax advice by connecting live one-on-one with the Tax Pro 24/7.”
So there you go. You have all the versions of the TurboTax software, the number one choice based on accuracy, ease-of-use, and support. Choosing the right tax software solution should help you lessen the anxiety of filing taxes on your own.
By the way, to give all your tax documents stored on your computer some extra protection, we highly suggest that you use an online backup solution such as Carbonite. This backup solution has all the great features that you need to securely protect all your tax documents from the possibilities of being lost as a result of natural disasters, accidents, or theft. You can in fact use a carbonite offercode on r-fate.com to be able to get a discount on the personal package. Now for business tax documents and to make sure that all your computer files in your office are protected, use a carbonite business offercode on r-fate.com and get some really significant discounts, depending on the the package.
Just remember that there are really some great tax software, as well as related productivity and protection software out in the market that you can use to make sure that your tax filing goes smoothly and efficiently. These software packages help take out all the stress from your annual tax filings.
The IRS requires the working public to file their tax returns every year. In the past, filings of tax returns are done manually by reviewing receipts, using a calculator and with the help of a tax professional. The entire process could take hours. Nowadays, because of the prevalence of personal income tax (PIT) software, it is now possible to file your income tax returns faster and more efficiently than ever before.
A few software companies have partnered with the IRS, to bring you the income tax software. You can purchase them through online or offline. With online purchase, you will be able to download immediately after payment. If you are interested in purchasing CDs, these are usually available in your local computer stores.
Quick And Easy
The primary advantage of this tax income software is it speeds up the filing of the tax return. Furthermore, tax income software is easy to use. Most tax software guides the taxpayer in a step-by-step format, and this helps in the completion of the tax return filing faster. In fact, with the help of the software, the entire process is usually completed with half the time when compared to traditional methods.
Another advantage of tax income software is helping with the accuracy. Everyone makes mistakes, and it is very possible to make mistakes when filing for your tax returns. It increases accuracy by calculating all the necessary calculations for you. Furthermore, while in the process of filling up the different forms, the software is vigilant in catching errors. It will then prompt you if it catches a mistake so you can correct it before moving to the next page or form. The software is vigilant in catching errors all through-out the entire process, form the first page you need to fill-up all the way to the submission of the forms.
Personal income tax software also helps in reducing errors on the side of the IRS. It is not uncommon for the IRS to make a mistake when obtaining information from handwritten forms. After all, not everyone posses a neat and clear handwriting.
Most of the tax software allows the easy transfer of information from the federal tax return information to state tax return. You will not only be saving time, but you are also ensuring the accuracy of the tax return information.
The software will also help you save money in the form of availing any refunds, exemptions, deductions and other credits that are applicable to your specific situation.
Income tax software cost less when compared to the fees of a tax professional. Generally, fees of a professional tax preparer largely depends on the area where the file is being prepared, the number of form that needs to be filed and how complicated the entire process is. Usually, the fees of a professional tax specialist would cost you 100 dollars or more. However, the price of income tax software ranges widely from free to $60.
Personal income tax software is a great tool in helping you with the tax returns. It help makes the entire tax return preparation become a faster, smoother, more accurate, and time- and cost-efficient process.
Also, when it comes to storing all your personal tax files in digital form, it is highly suggested that you keep backups of all your filings, documentations, and all related matter. Using an online backup solution such as Carbonite backup is the best option for this as opposed to simply backing up all your files to an on-location external drive. For personal or home document backup, I highly suggest that you use the latest discount offer that you can find on Carbonite so that you can get some discount and get started backing up all your computer files. Now if you have a small business, you can also find some promo that also offers a discount on Carbonite for business, which is really a great solution for protecting your business tax files. These are really very important investments that you should not be without.