Filing your taxes on your own is such an invaluable skill in this day and age. It can be complicated at first, but with the resources available for you to utilize nowadays, it’s not entirely impossible to become an expert at it.
There are lessons on the internet readily available, and most of all, there are innovative tools and software that we can take advantage of. Take TurboTax for example, it’s easy to use, robust, and has been serving DIY taxpayers for quite some time now.
It’s tried and tested. So, how did it adapt to the tax revisions post-pandemic? Let’s discuss.
What Is TurboTax?
TurboTax is not just a program but a software package that is designed to help American taxpayers to prepare and file their taxes. TurboTax has been around for almost 4 decades now. It is known for its user-friendly interface that can make things easier for people to file their taxes electronically, may it be for an individual or for a business.
Another great thing about TurboTax is that it’s got a free tier that people can take advantage of. If you want to use more of its features or if you process more than just simple tax returns, then you’re going to need a paid subscription.
How Has the Pandemic Affected How TurboTax Works?
The COVID-19 pandemic has done a lot of damage to people and businesses’ finances. It’s only natural that taxing was largely impacted, too. Naturally, such impact now reflects on how TurboTax operates moving forward.
In 2021, TurboTax worked on developing a way of allowing users to directly connect their accounts to the software. This significantly makes it easier for people to use it and take advantage of the free tier.
After connecting your account to TurboTax, any relevant information will automatically be uploaded. You can upload any of your tax documents online which can make the process a whole lot easier.
Not only will you have access to product support specialists but your tax returns will be reviewed by tax experts themselves for free. This is how TurboTax plans to help people post-pandemic. Just take a look at their plans.
- FREE: Best-fit for earned income tax, W-2 income, and child tax credit.
- DELUXE: Itemized deductions, HSA, Student loan interest deduction, Retirement contributions, or Saver’s Credit.
- PREMIER: Landlords, Stock Market Investments.
- SELF-EMPLOYED: Self-Employed and with expenses. Also includes a year of access to QuickBooks’ self-employed version.
Then, there’s TurboTax Live, a multi-tier TurboTax service where you can get guidance from a tax expert. It’s got a free tier where you can get unlimited review, advice, and assistance.
Tax-Revisions and Stimulus Checks
Let’s take a look at a few tax revisions throughout the COVID-19 pandemic. First of all, you should know that the same seven tax brackets were retained but it’s important to take note that the tax rates were lowered.
Minimum tax exemptions were also increased to ease the financial burden on taxpayers. Individuals and families were given tax reliefs to better adjust to the situation through an increase in standard deductions as well as in child tax credits.
Personal, as well as dependent exemptions, were also eliminated. Deductions to state and local taxes or home mortgages were also implemented. Health care was largely tweaked.
If you’re someone who’s self-employed, such as a freelancer, sole-proprietor, or contractor then tax deductions for you were also implemented.
That’s quite a lot to remember, but don’t worry, TurboTax has got you covered. All of these tax revisions are already integrated into their system. File your taxes as you used to and changes will apply automatically.
The same goes for stimulus checks. TurboTax’s team of tax experts is more than ready to assist you. The company has also developed a stimulus check calculator.
Due to the recent and ongoing crisis, it’s not surprising if you’re struggling to keep up with your finances or paying your due taxes. You’re going to need all the help that you can get and knowledge in this arena is just as valuable as earning a steady income.
Go ahead and check out our fundamentals of personal finance course to better enhance your knowledge about finance, wealth management, and taxes.