TurboTax is American tax preparation software designed to guide its users through their tax returns thoroughly. There are several versions of this, including TurboTax Deluxe, TurboTax Premier, etc. TurboTax is used for both federal and state income tax returns. TurboTax handles simple tax returns quickly and easily and provides added features for those purchasing a premium version of the software product. TurboTax does ask a lot of questions before you get to data entry screen, which can make the process time-consuming if you are trying to revise a specific advice. For major tax related issues, such as picking the right filing status, TurboTax offers Easy Guides to go through all the details. We have some major unique advantages of TurboTax application and we would describe about those features below:
-You can have notifications about updates as soon as it becomes available
-You get automatic subscription to your software every year
-Year-round access to your account to stay up-to-date on the status of your orders, shipping information, and billing-related issues
-Personalized TurboTax Advantage website where you can double-check and update your account in minutes, and redeem your exclusive offers
Here below, I will be explaining about different editions of TurboTax along with its features.
1- Federal Free Edition:
TurboTax Federal Free Edition is for a person or professional who have simple tax returns and don’t need much tax guidance, irrespective of income level. Users get the opportunity to get free tax preparation. It searches for all the tax credits you’re eligible for to get you the biggest refund possible and guaranteed. I would describe some better features of this free edition:
-Accounting Knowledge Not Required
-Automated Transactions
-Automated Costing
-Encryption and Tax Preparation
-Support via e-mail, tutorials and forums
2- TurboTax Basic:
TurboTax Basic is just like the federal free version, but it has some features for importing or transferring W-2 and 1099 data, last year's TurboTax return and data from it resources. TurboTax will import prior year tax data from a PDF of last year's return created with any tax software. I will explain about some of its major features below:
-Easy Questions
-Automatic Filling of W-2 and 1099rn-Transfers Last Year’s TurboTax Info
-Imports information’s from our other tax programs
-Great help from all it’s resources about just anything
3- TurboTax Deluxe:
TurboTax Deluxe has some unique features along with tools for taking itemized deductions.
-Deduction Maximizer covers 350 tax deductions and credits
-Includes Its Deductible for tracking tax-deductible charitable contributions
-Audit Risk Meter
4- TurboTax Premier:
It has all features of TurboTax Deluxe along with support for reporting investment gains and losses, rental property income and deductions and employee stock purchase plans.
-Tax-saving advice for 401(k)s and IRAs and 401K Maximizer tool
-Guidance for stocks, bonds, mutual funds, employee stock plans
-Cost Basis Lookup tracks and calculates cost basis
-Reporting rental property income, expenses and refinancing
5- TurboTax Home & Business:
It has all features of TurboTax Premier along with an expanded interview that covers Schedule C for self-employment
-Identifies deductions for travel, home office, vehicle expenses and other tax deductions
-Special section for new business start-up deductions
-Transfers data from QuickBooks
-Prepares and prints W-2 and 1099 forms for employees and contractors
6- TurboTax Business:
TurboTax Business is for S Corps, partnerships, C Corps, or multiple-owner LLCs. TurboTax Business includes the features in the Basic version (see above) with the Audit Risk Meter, rental property tools, and Schedule C features.
TurboTax Business prepares Forms 1120S, 1065, 1120, and 1041 (estates and trusts).
-Interview maximizes business deductions by providing industry-specific information on deductible and non-deductible expenses.
-Calculates and prints W-2 and 1099-MISC forms
-Depreciation calculations and reporting
-Multiple business support
-Imports data from QuickBooks 2007 and later
There are many hosting companies to host all editions of TurboTax. With them, we will have opportunity to use TurboTax along with
QuickBooks Hosting and other Tax and Accounting programs on a single platform.