This Personal Tax Software Is Easy To Follow

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.

Easy-To-Follow Instructions

Here are the easy-to-follow instructions.

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.

Choosing The Right Tax Software Solution

tax-preparation-software-02You 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:

• TurboTax
• Tax Act:
• H& R Block
• Tax Slaver
• ESmart Tax

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.

I’m Better Off With A Personal Tax Software

software-personal-income-tax-01Let’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:

“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;

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.

A Personal Income Tax Software For Accountants

software-for-taxes-01Taxprep 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:

EFILE Transmission

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.

Backing up is a really important part of record filing, hence we suggest that you get started and read more about Carbonite Server Pro for your business servers. Now, if are running a smaller business and have a couple of computers that need to be backed up, it would do you well to use Carbonite Pro Prime which can really provide you with some significant savings.