File My Taxes Online

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Nov
29

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When Can I File My 2021 Taxes?

Category: Tax Filing, Trending Tags: , , , , , , , , ,

Are You Wondering When Can You File Taxes in 2021?

Now, anyone can get started with early online tax filing and get a head-start on their tax return. TurboTax and H&R Block will both securely hold and then submit customers’ tax returns to the IRS as soon as they begin accepting returns. Which is usually in mid-January.

There is no faster way for taxpayers to get their tax refunds!

If you file your taxes online, you can easily prepare and file your own taxes. Online software offers advanced tools to help you file your taxes and pay the least amount possible. They also provide fast refunds.

How Soon Can I File Taxes?

When is the first day I can file my taxes?

When does tax season start in 2021? 

The Internal Revenue Service has set the opening day for the 2021 filing season as Monday, Jan. 27, 2021. That’s the day the IRS will begin accepting and processing 2020 tax year returns.

However, you can start on your taxes now, and have your taxes automatically filed the minute the IRS begins accepting tax returns.

Which means you’ll get your refund back before everybody else.

The reason why taxpayers won’t be able to submit their returns until the January start date is that the IRS has been updating their tax processing systems in readiness for the tax season ahead.

When is the Last Day for Filing Taxes

The tax filing deadline for 2021 will most likely be April 18th.

The IRS website also has a wide variety of tools and information available that can make preparing taxes easier. In addition, the IRS recommends that you e-file and choose direct deposit as the way to receive your refund. This ensures you keep your information safe, your return is accurate, and that you receive your refund in the fastest amount of time.

Once again, the IRS has projected that nine out of ten returns will receive their refunds in less than 21 days. If you qualify, you should also take advantage of free tax options available. You can go to the IRS.gov to the “filing” tab to see what options may be available to you.

Additional Tax Filing Facts to Keep in Mind

  • 70% of taxpayers are eligible to file their taxes via IRS Free File. Other commercial partners of the IRS offer free brand name software to 100 million individuals and families who make less than $62,000.
  • Online tax forms allow you to have electronic versions of IRS paper forms regardless of your income. They can be prepared and filed by you if you are comfortable preparing your own income taxes.
  • VITA and TCE provide free tax help to those who qualify. You can learn more about them by going to the IRS website and entering “free tax prep” in the search box. Alternatively, you can download the IRS2Go mobile app on your phone and find a free tax prep provider that way.

Tips for Filing Your Taxes

  • Organize – Make sure that you have everything that you need before you even begin working on your returns.
  • E-File – E-filing comes with so many benefits such as ease of use, quickness of filing, and identity protection.
  • Sign Up For Direct Deposit – If you want to receive your tax refund in the quickest amount of time, you need to sign up to have it direct deposited.
  • Ask Questions if Needed – If you are unsure about something, ask questions. It is always better to be safe than sorry.

How to Get a Fast Tax Refund

When 2021 rolls in, you can start preparing your tax return online. Once you have it completed, you will be among the first of taxpayers who have their returns processed and their refunds issued.

Keep in mind when you file your taxes with TurboTax or H&R Block, the process is easy. They provide you with the largest refund possible by ensuring that they ask the right questions to find out which deductions and credits you qualify for.

You can also use their free tax refund calculators to see how much your tax refund will be. When you file your taxes online, there is no way that you can go wrong, and many taxpayers can file their federal tax returns free or at a discount.

What to Do if You Have Not Received Your W-2

You need a w-2 form when you file a tax return

Before you can file your tax return, you have to have all of the documents needed, including your W-2. All of your employers are responsible for sending you this, yet they do have until February 2nd to do so. If you have not received your W-2 yet, you can follow these steps.

Contact Your Employer – If you have not received your W-2 yet, you need to contact your employer to see when they put it in the mail. It’s possible that it was returned to them due to incorrect mailing details. Once you have contacted them and found out the status, give it a reasonable amount of time for your W-2 to arrive.

Contact The IRS – If you have not received your W-2 after February 14th, it is time to call the IRS at 800-829-1040 for assistance. When calling, make sure you have your name, address, social security number, and phone number. Additionally, you will need your employer’s name, address, phone number, your employment date, the estimate wages earned from them during the year, and estimated federal income tax that was withheld. To make an estimation, you should refer to your most recent pay stub.

File Your Return – Even if you do not have your W-2, the IRS expects you to file by April 18, or request an extension. You can use Form 4852 Substitute for Form w-2, Wage and Tax Statement. This form should be attached to your return; however, keep in mind your refund may be delayed since the IRS has to verify your information.

File Form 1040X – If you receive your W-2 after you have filed your taxes, you must amend your return by filing Form 1040X Amended U.S. Individual Income Tax Return.

To ensure that you receive the maximum refund possible, it is suggested that you file your taxes using online software. It makes filing taxes easy, and when filing your taxes electronically, your tax refund can be returned to you sooner.

IRS News – Getting Ready to File 2020, 2021 Federal Income Tax Returns

Tax Season 2021 Start Date

With online tax filing, you don’t have to wait for the IRS tax season start date in mid-January.

If you start on your taxes now, you’ll be the first to get your refund back! You’ll be asked simple questions about your life and income, and we’ll fill out all the appropriate tax forms and file them for you.

You’ll get step-by-step instructions through your taxes, expert help when you need it, and every deduction and credit that applies to you. We make sure you get the biggest refund possible.

How to File Taxes Online in 3 Simple Steps - TurboTax Tax Tip Video

Remember, with TurboTax Online Tax Filing we’ll ask you simple questions and fill out the right forms for you. We’ll find every tax deduction and credit you qualify for to get you the biggest tax refund, guaranteed!

Nov
29

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Getting Your W2 Form Online

Category: Tax Forms, Trending Tags: , , , , , , , , , , , , , , | Leave a Comment

When you’re doing your income taxes, you will require many forms, and probably the most significant one is the W2 form.

Every business that you were employed at in the previous year is liable for supplying you with a W-2, which must be sent out by January 31 of the current year. You may be able to get a copy of yours sooner online.

How to Get Your W2 Form Online

Learn how you can get your w2 form online.

Online tax filing helps users to get their W2 form online quickly. They have a free W2 finder that you can use to search for yours.

After you get your W2, you can start filing your taxes online, or you can download a copy so you can print it out and attach it to your tax return.

It’s a much faster process than waiting for your W2 to come out in the mail. With over 100 million W2’s available online, there’s a good chance you’ll be able to find yours.

Here are 2 Good Places to Get a Copy of Your W2 Online:

TurboTax W2 Finder will find and retrieve your W2, which allows you to file your taxes as soon as you are ready. This year you can lookup W2 easier than ever before! Just follow the TurboTax screens as it guides you to finding your W2 online.

Millions of employers and financial institutions participate, so the odds are good your W2 will be available to download. You save time by doing so, and it ensures that your information is delivered accurately.

H&R Block W2 Finder will also find and access your W2. When using an online-based company like H&R Block, you will have the capability to get your W2 data online. You won’t have to wait for your forms to come in the mail.

The H&R Block search page can find your W2 in 3 easy steps. You can then import your W2 data into your tax return for free, so that you can get your refund as soon as possible!

What is a W-2 Tax Form?

A W2 is a tax form that documents money paid to you, and money withheld from your paycheck. It includes your commissions, tips, wages, and the taxes that were withheld from your income for federal, state, and social security purposes.

This document has all of the information that you will need to fill out the financial information for your personal taxes. If you have worked, the IRS requires that you use your W-2 to file, and then they determine the amount of taxes that you should pay the federal and state governments.

When Do W2s Come Out?

The IRS mandates that employers have to send out or make W2’s available to their employees by January 31. Even if you switched jobs, they still have this deadline in place, yet sometimes you can expect to receive it earlier. Your former employer will also include your accumulated vacation, severance, and outstanding bonuses on your W-2 form.

To file your income taxes and get your tax refund, you have to have your W2. This form contains all of the important information that you need for your annual income tax filing.

If you do not have your W-2 form by the end of January, confirm that your employer has your correct mailing address. If you don’t receive the W-2 from your employer by Valentine’s Day, contact the IRS at 800-829-1040 and provide them with your details so they can find your information.

Before calling them, make sure you are prepared to provide them with your name, mailing address, phone number, social security number, employers name and address, and the dates that you were employed

The IRS will accept returns without W2’s; however, this could delay your refund. The IRS has to make sure that your income is accurate and matches their records before they can issue you a tax refund.

How to Import Your W-2 Form Using TurboTax Online

TurboTax regularly handles the importing of W-2 forms for tax filing. The majority of businesses, and also the military services, now provide w2 online retrieval. It’s now easier than ever to find and import your W-2 Form from your employer directly into your tax return.

Who Can Get Their W2 Online?

Many companies, including the military, have their employees W-2’s available online for free. The documents can be downloaded via a variety of outsourcing companies, so the distribution process of the W-2’s are automated. Your employer should alert you as to whether or not you will be able to access your W2 online.

If they do allow you to access it online, you will get the benefit of being able to file your taxes earlier in addition to not waiting for paper copies, and eliminating the security risks that come along with having that information sitting around on paper.

What to Do if You Can’t Find Your W 2 Form

The W 2 form is usually mailed to you or made accessible online by the company you work for. If the form is lost, missing, or you can’t find it online, contact your employer immediately. It’s a good idea to call the IRS if you don’t receive the W2 by mid-February.

In the worst-case scenario, you can fill out Form 4852 and attach it to your tax return. The substitute wage and tax statement allows you to input the same details. A tax extension is another possibility and buys you more time.

Your best bet is to file on time. If the W 2 arrives later, and the information is different from your estimates provided, Form 1040X can be filled out to correct any discrepancies, and amend the previous year’s tax return.

Getting Multiple W-2s from the Same Employer with Different Amounts

w2 tax formUsually, if you have multiple W2s from the same employer, with different amounts, you need to enter all of them. Turbo Tax or H&R Block can help you get all of the W-2s entered and will calculate the combined income. You may have to file multiple W-2s if any of the following situations apply to you:

  1. You worked for a temporary agency that sent you on different jobs. This will cause you to have multiple W-2s with different amounts but the same Employer Identification Number.
  2. Your employer changes their payroll or placement agency who is responsible for your pay
  3. Your employer was purchased or merged with another company
  4. Different divisions of your company paid you. In this case, the Employer Identification Numbers will differ
  5. Your employer reports additional compensation, such as reimbursement for employee business expenses

If all of the Employment Identification Numbers, addresses, and names are the same, you may want to contact the payroll department to see why the W-2s were sent out like this. If it is a payroll error, you will have to get a correct W-2.

How to Get a W2 From a Previous Employer

Contacting a current or former employer is the easiest way to get a W2 from a previous employer. The IRS is the next alternative if you can’t reach the employer, or you do not wish to contact them again.

Getting Prior Years W2s

If you file a prior-year tax return, there may be complications such as missing W-2’s and other forms. You can still get a copy of that form. To get a copy of a prior year W-2, there are a couple of possibilities.

How to get W2 form from prior year or previous employer.Contacting the issuer is the easiest way to find that particular W2. Employer payroll departments save such important documents that contain tax information. You can contact them and ask for the form to be sent to your address. This is usually the best way.

You can also contact the IRS directly. If you can’t get in touch with that employer, then you will need form 4506. Although it may take longer and cost you some money, this allows you to obtain the copy of that year’s W-2 rather than do nothing.

It’s important to note the IRS holds past W-2’s and other tax documents for 7-10 years. They’re filed under each taxpayer’s social security number. You can ask for a W-2, but not until a year after it was filed, and form 4506 will be required to get a copy after that. Also note:

  • The IRS charges a $57 service fee; checks are paid to “The United States Treasury.”
  • Check the second page of form 4506 for the address to send it to.
  • It takes the IRS up to two months to process the request and send the W-2.

Remember, with a few clicks of the mouse, you can use the TurboTax W2 finder or the H&R Block W2 finder and get the data from your current online W2, and your tax returns are ready to start in moments.

Nov
28

By

TurboTax TaxCaster Tax Refund Calculator

Category: Tax Calculators, Tax Refund, TurboTax Tags: , , , , , , ,

Tax season is just around the corner. That means it’s time to start thinking about your tax refund and how much you might be getting back.

The TurboTax taxcaster will calculate how much your IRS tax refund will be in minutes.The TurboTax TaxCaster is an all-in-one online tax tool that helps you work out a range of tax-related figures.

This free tax refund calculator can be accessed online, and because you can use the calculator anonymously, you can rest assured that your personal information is protected.

Let’s look at TaxCaster and see how it analyzes your income and key tax factors to determine an income tax refund estimate.

How Does TurboTax TaxCaster Work?

The TaxCaster Calculator uses information about your wages, withholdings, deductions, credits, and exemptions that you qualify for, and factors them into a calculation to work out your total taxable income.

This total is then used to work out how much you should get back in your tax refund, or how much you owe the IRS.

tax calculator

Determining Your Tax Deductions

There are certain payments, transactions, and expenses that will be subtracted from your tax bill. These are called tax deductions. Tax deductions can help you claim a bigger refund back from the Internal Revenue Service (IRS).

Here are several common tax deductions:

Here are 9 more tax deductions you may qualify for:

  • Jury pay
  • Child Tax Credit
  • Credit from childcare
  • State taxes (Spring payments)
  • Reinvested dividends
  • EITC (Earned Income Tax Credit)
  • Selected out-of-pocket contributions
  • Tuition fees (for dependents)
  • Job expenses

Tracking these deductions throughout the year will help you to work out both your local and state tax liability, but there’s a much easier way. The TurboTax TaxCaster is programmed to understand your potential deductions and factors them into your overall tax refund estimate.

Taxcaster Calculates Tax Credits for Children

TurboTax TaxCaster checks to make sure that you are claiming all of the deductions and credits that you are entitled to for having a child. Their system asks you the right questions to ensure that you receive your largest tax refund estimate possible.

Having children is a rewarding but costly decision. From clothing and food to medical bills and schooling, you need every bit of money you can get to give your child the best, all the time.

You Can Use the Tax Caster for Free!

Unlike the old days when working out your tax payments involved a trip to the taxman, you can use the TaxCaster calculator anywhere, because it is an online tool. For added convenience, you can also download the app.

The tax refund calculator can be accessed any time, meaning you always know exactly where you stand when it comes to your taxable income, and whether you will be getting a refund or a bill come tax time.

Nov
28

By

The Best Way to Avoid a Tax Refund Delay this Tax Season

Category: Tax Refund Tags: , , , , , , ,

Tax filing season is on the way and you might be expecting a tax refund. The Internal Revenue Service (IRS) has already put out an official reminder to taxpayers about the steps they should take if they want to avoid their tax refunds being delayed. These steps will also enable the smooth processing of their tax return.

Tax Refund

Have Everything You Need First

The IRS says that filing online is the best way to get your refund fast. Don’t be without your W-2s and 1099s before filing. You should also look to grab a copy of your previous year’s tax return in the process.

Filing your taxes will be more secure if you’re using tax software to file. You will need the previous year’s tax return because the Adjusted Gross Income amount could be used to verify who you are. Validating your tax return is a crucial part of the process of successful filing.

Do You Need a New Tax Number?

Your Individual Taxpayer Identification Number (ITIN) is a verifier of your identity. But because of the Protecting Americans from Tax Hikes Act 2015, known as the PATH Act, any ITINs that were issued before the year 2013 and haven’t been used up to 2015 won’t be valid for use starting from 2017.

This means you’ll need to renew your ITIN. Failure to do this could lead to delayed filing, and even rejected filings. It’s a long process to renew your number, so you should plan. It takes approximately seven weeks, but some taxpayers have had to wait for up to 11 weeks.

Take note that if you don’t renew in time you might lose out on your tax credits. For example, if you’re trying to claim the Additional Child Tax Credit or the Earned Income Tax Credit your refund will be held until February 15th. Again, this is due to new legislation designed to give the IRS more time to check for fraud.

Opt for E-File and Do it Early

The IRS has also put out a warning against making big purchases before getting your refund. Some refunds do require additional time to process, and can be delayed by a few weeks. The best way to avoid most errors, though, is to use the e-file method of submitting.

The IRS also recommends using direct deposit to get your tax refund faster. It’s the same system used for social security and benefits for veterans. This is faster and more cost-efficient than requesting a paper check that you must cash yourself.

Turbo Tax provides you with step by step instructions to insure that you get every deduction and credit that you are eligible for. Turbo Tax also insures that you get the largest refund possible. Their online filing services have the ability to import your W2 information into your tax return so you can avoid worrying about your forms being delivered via snail mail.

Nov
28

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How Much is the Child Tax Credit?

Category: Child Tax Credit, Tax Credits Tags: , , , , , , , , , ,

As with any tax credit, refund or deduction, there are a few rules that will influence the amount that eligible applicants will receive.

Here is a breakdown of everything you need to know about the Child Tax Credit and Additional Child Tax Credit

How Much do You Get Back in Taxes for a Child?

The child tax credit for 2020, 2021, is worth up to $2,000 per child that is under the age of 17. To be eligible to claim the child tax credit, your child or dependent must first pass all of the eligibility tests:

  1. Must be 16 or younger on the last day of the year
  2. Must be a US citizen, US national, or a resident alien
  3. Must be claimed by you as a dependent
  4. Must be related to you by blood, or step relationship, or legally adopted child/foster child
  5. Must have resided with you for more than half of the year (special rules apply for special circumstances such as divorce)
  6. You must have provided them with more than half of their support

What is the New Child Tax Credit Amount After Tax Reform Changes?

Learn how much is child tax credit amount and who qualifies to claim it.

Under the Tax Cuts and Jobs Act (TCJA) the following new child tax credit rules will take place starting in 2019:

  • The Child Tax Credit changes make it worth up to $2,000 per qualifying child. The age cut-off remains at 17 (the child must be under 17 at the end of the year for taxpayers to claim the credit).
  • The refundable portion of the credit is limited to $1,400. This amount will be adjusted for inflation after 2018.
  • The earned income threshold for the refundable credit is reduced to $2,500.
  • The beginning credit phaseout for the child tax credit increases to $200,000 ($400,000 for joint filers). The phaseout also applies to the new $500 credit for other dependents.
  • The child must have a valid SSN to qualify for the $2,000 Child Tax Credit

Child Tax Credit Explained for 2020 Video

Claiming the Child Tax Credit

Any parent or legal guardian with a child age 17 or younger at the end of a tax year is eligible to claim the child tax credit. The child must reside with the claiming parent for more than 50-percent of the year. The child also cannot financially support themselves with at least half of their own expenses.

When you prepare your taxes online, you are automatically asked the right questions to determine if you qualify and how much you get back in taxes for a child.

What is the Additional Child Tax Credit?

What is the additional child tax credit?

If the refundable credit you receive from the standard Child Tax Credit is more than your taxes owed, you might receive an Additional Child Tax Credit (provided your income is at least $3,000).

Form 1040 has all the information you need to calculate whether or not this applies to your current family situation.

IRS Child Tax Credit Worksheet

Child tax credit worksheet and calculator

The child tax credit worksheet is a helpful resource provided by the IRS. You can find it through IRS Publication 972. The purpose of the worksheet is to help you calculate how much child tax credit you can claim this coming tax year. You’ll be able to enter information like your income and how many eligible children you have.

You should remember that the child tax credit, is non-refundable. It reduces your tax liability and can do so all the way to $0.

If you have three or more qualifying children, you may be able to take the Additional Child Tax Credit instead. This is handy if you would rather get a refund instead of reducing your total tax liability.

Use the child tax credit worksheet to figure out which option is best for you.

Try the Child Tax Credit Calculator

Thankfully it is simple to calculate both the Child Tax Credit and the Additional Child Tax Credit if you meet the set requirements.

Websites with online tax filing platforms offer a complete service for calculating and claiming the child tax credit. All you need to do is supply basic information, and you will see if you’re eligible for either of these credits.

The dependents credit finder asks simple questions about your dependents and will let you know if you can claim the child tax credit on your tax return and calculate how much you qualify for.

Best of all, you can use these tools for free before you file.

How Much is the Child Tax Credit Phase Out Limit?

You should also keep in mind that the child tax credit begins to phase out at $200,000 for single taxpayers and $400,000 for joint taxpayers.

The child tax credit limit is locked in at $2,000 per child. This has increased substantially under the Tax Cuts and Jobs Act (TCJA), which changed the entire tax system. You need to be aware that the changes state that you can’t get more than $2,000 per child.

However, you need to be aware that many families won’t get $2,000 per qualifying child. Many families will get much less after income, and other restrictions are considered.

Other things could impact how much you get from the child tax credit, such as social security and Medicare payments.

What About Dependents on Multiple Returns?

Only one taxpayer or couple can claim the child for the Child Tax Credit and ACTC. If more than one person tries to claim the child, the IRS will determine who gets to claim the child using the tiebreaker rules.

Other Child-Related Tax CreditsLearn about other child related tax credits.

Most parents and legal guardians are aware of the earned income credit (EIC) and child tax credits that they can qualify for to reduce their tax liabilities.

Some do not know that adoption credits can be taken as well as paying out-of-pocket (OOP) for child/dependent care. These deductions can help reduce your tax liability, and in some cases, result in a refund.

Earned Income Credit (EIC) – To qualify for the EIC, you must meet income limitations and have the required number of qualifying children for your income level. The income thresholds can change. An example is the recent earnings year. Families with a single child filing jointly cannot have an adjusted gross income (AGI) more than $46,010. For single/head of household and surviving spouses, the income limit for a single child is $40,320.

Child and Dependent Care Credit – You could deduct up to $3,000 for one dependent or up to $6,000 for more than one with this credit. The percentage of child and dependent care costs that you can claim, as an allowable expense, is 20 to 35-percent based upon your AGI. If you have a single qualifying child, the maximum credit amount is $3,000. For two or more children, the maximum credit is $6,000.

Adoption Tax Credit – If you have already adopted or are in the process, you may qualify for this credit. The method of adopting a child is costly. Some employers assist employees with adoption expenses. This “income” can be deducted and claimed as employer-provided adoption assistance. You can also claim any monies paid to an adoption agency for the adoption of a child that qualifies for the credit.

You cannot receive any excess funds. The maximum credit can change, you should view the yearly guidelines set by the IRS. Extra monies are rolled forward as credits on future tax returns.

Student Loan Interest – Student loan interest can be deducted up to the amount of $2,500 per school/tax year. The modified adjusted gross income constraints to claim this credit require that those filing single do not have more than $80,000 income. For those that are married, the income threshold is $160,000 if you file jointly

Filing Status – If you are unwed and your child resided with you for more than half of the year, you could qualify for a higher standard deduction and lower tax rates with the Head of Household filing status.

Exemptions – Receive the standard exemption for each child that qualifies.

How to Claim the Child Tax Credit

You don’t need to worry about figuring this out. Online tax filing makes it easy to claim the child tax credit. After asking you a few simple questions about your family, the tax software will determine for you who qualifies as a dependent on your tax return and how much you can get back.

That way, you’ll get the biggest tax refund possible with the least amount of hassle.

Additional Considerations

It is important to remember that the Child Tax Credit can only be claimed once per child – it cannot appear on multiple tax returns.

If there is an argument around who is entitled to the credit, the IRS will make a judgment call based on who will receive the money based on a set of predetermined rules.

The Child Tax Credit is not the only way that you can use tax rulings to help support your children. Here’s an overview of the child-related tax savings that might apply to you:

  • There are standard exemptions that apply to each of your qualifying children.
  • The Child and Dependent Care Tax Credit allows you to deduct $3,000 per child or a total of $6,000 if you have multiple dependents.
  • The Adoption Tax Credit is available to those who have adopted a child or are in the process of doing so.
  • Note that if you are unmarried and your child spends at least half of their time living with you each year, then the benefits and deductions available change provided you submit your tax return as a Head of Household.

The government has structured the tax system in such a way that those with children, or in difficult financial circumstances, can afford to look after their little ones and give them the best care possible. There is no need to feel guilty about trying to get credit from the tax system – it’s there for the taking.

Form 1040 (Schedule 8812) helps determine if you qualify and the amount of the credit that you will receive. If you prepare your return online, the software will do all of the math for you.

Nov
28

By

Best Online Tax Filing Software

Category: Tax Filing, TurboTax Tags: , , , , , , ,

Online Tax Filing

Some of the most highly recommended tax software companies are now offering free and paid editions for online tax filing. You’ll pay nothing to file your federal and state taxes if you have a simple tax return.

Start by easily importing your W-2, answer simple questions about your life, and you’ll get you your maximum refund, guaranteed!

The two easiest to use for free and the ones we recommend are:

TurboTax Federal Free Edition

H&R Block Federal Free Edition

You can file with the free edition if you have the following situations:

  • W-2 income
  • Limited interest and dividend income reported on a 1099-INT or 1099-DIV
  • Claim the standard deduction
  • Earned Income Tax Credit (EIC)
  • Child tax credits

Conditions not covered in the Free Editions include:

  • Itemized deductions (Schedule A)
  • Business or 1099-MISC income (Schedule C)
  • Stock sales (Schedule D)
  • Rental property income (Schedule E)
  • Credits, deductions, and income reported on schedules 1-6, such as the Student Loan Interest Deduction

For those who don’t qualify for the Free Edition we recommend the Deluxe versions by TurboTax and H&R Block:

TurboTax Deluxe Edition

H&R Block Deluxe Edition

Deluxe versions search over 350 tax deductions and credits to find every tax break you qualify for, so you get your maximum refund. Homeowners get step-by-step guidance to help turn their biggest investment into their biggest tax break.

Other Editions are available for Self Employed & Business Income and Expenses and Investments and Rental Property.

The best part is, you can use the online software for free and only pay when you file.

2 Best Online Tax Software Services for Free in 2020, 2021

There are several benefits to using either TurboTax Federal Free Edition or H&R Block Free Federal Edition. Both offer the option to file simple tax returns without paying a single cent.

Due to the fact you can file these simple, common forms for free, the only characteristic you should be looking at is whether the software in question is easy to use.

To choose the best free online tax software, we tested out both free editions, evaluating a few of the most important characteristics along the way.

What’s Good About TurboTax?

turbotax free

You should always feel like you can file your return with confidence before choosing any tax software. TurboTax Free Edition is a good choice for this.

The average W-2 worker can prepare their return without paying a thing and file knowing that everything is accurate, and they’re not going to get audited later.

TurboTax comes with simple step-by-step instructions for filling out the return, including on their mobile app. Six million people filed using a mobile device last year, says Intuit, and with TurboTax, this couldn’t be easier.

So How do You Get Started?

You can easily import your W2 form, and the software will then ask you some questions regarding your life to figure out whether you’re entitled to any deductions or if there are any aspects that could change your tax affairs.

There’s also a refund calculator, a real-time audit risk detector, and a free live chat service if you need help with your tax return.

On a side note, the paid edition comes with Smart Look, where you can have a one-way video chat with a CPA or enrolled agent.

To qualify for the Free edition of TurboTax, all you must do is be a worker who needs to file a simple 1040 tax return.

Specifically, this means you have an income under $100,000, you don’t own a home or rental property, you don’t have any big medical bills, and you don’t have any income that would appear on a 1099-MISC form.

What’s Good About H&R Block?

h&r block free

Our second recommended piece of software is H&R Block because you can file state returns and Federal returns for free.

H&R Block Free online software will give you everything you need to file a simple tax return. In most cases, it’s always better to start by using the free tax software before upgrading to the paid versions.

If you own your own home or you’re paying off student loans, this is another excellent option. H&R Block supports more forms, including Form 1040 and itemized deductions, as well as factoring in student loan interest and mortgage payments for free.

One of their most popular tools is the H&R Block tax refund calculator.

When using an online-based company like H&R Block, you will have the ability to get your W2 information online. You won’t have to wait for your forms to come in the mail.

Many ordinary Americans worry that filing their taxes is going to be difficult because of all the difficult rules and numbers. However, the average American can file their taxes with H&R Block in a short amount of time because it’s simpler than you might initially believe.

Last Word – Making Taxes Simple

By taking advantage of the right tax software, you can save yourself a lot of headaches and ensure that you’ll save a lot of money on accountants. Once you’ve tested out the free version upgrade to the paid version to unlock even more features for more complex returns.

TurboTax is one of the best free tax filing software options around because of its audit detection, simplicity, and comprehensive support. H&R Block is also an excellent choice because it can deal with a broader range of forms at the free level and enables people with more complicated tax affairs to file without feeling like they must hire an accountant.

But no matter which option you choose, what’s important is that you choose the software that fits your needs. Getting your taxes done quickly and without any hassle should be your ultimate priority because that’s what puts the dollars back in your wallet.

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