How does TurboTax work?

What is TurboTax?

TurboTax is a tax preparation software that allows individuals to calculate and file their taxes on federal and state income for themselves. It is the software nominated as a tax number 1 and promises to”get your largest, guaranteed tax refund “in just eight days.

How to use TurboTax

TurboTax offers step-by-step instructions for calculating and presenting your taxes. If you have never filed your tax return before, TurboTax makes it simple.

TurboTax offers a series of different programs in a range of prices that adjust to your individual financial situation. If you have a simple tax return, choose the free version. For homeowners or those with medical expenses, the deluxe version will help them find hidden deductions. Those with investment funds or rental properties will benefit from the Premier version, while those who work for their own account or who own only one LLC will find that the Home and Business version adapts to their needs. Finally, TurboTax even offers a version for companies that are committed to maximizing business deductions.

Once you have chosen the program that is best for you, create a username and load your basic information. Next, the program will ask you a series of questions related to your personal financial situation. You just have to answer “yes” or “no” on the fly and when prompted, simply fill in the blanks with the information on your tax forms. When you are finished, you can review the information you have entered and you can archive your statement instantly or save the data and continue later.

Check This Calculator: TurboTax Calculator

Advantages and disadvantages of TurboTax

Some tax forms like W-2 or well-known financial institutions such as mutual fund companies can be directly uploaded to TurboTax, saving you the hassle of having to write each number in a blank space.

TurboTax will keep the information on the fly to ensure that you do not lose your job due to an Internet interruption or equipment malfunction.

If you get stuck or have a question that can not be found in the tutorials, TurboTax offers the help of a tax professional through the phone, online chat or by email.

The upfront cost of each program covers the federal electronic filing. You have to pay an additional fee to file a state tax return.

TurboTax is considered the easiest to use when it comes to tax software. However, you must pay for the easy-to-use interface. TurboTax is also one of the highest priced tax software in the market.

How to compare to TurboTax

In the end, the result of the different tax software programs is the same: you get your filed tax return. The question is: how much help do you need? If your answer is not much, a less expensive program could be for you. But, if you are not familiar with tax software programs, then TurboTax’s intuitive step-by-step may be the best option.

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