This year the H&R Block discount for the 2020, 2021 tax season, brings you tax preparation and filing at an incredible sale price.
Learn how H&R Block tax software can help you file your taxes online and how you can get a 35% discount and other benefits for doing so.
H&R Block gives you options for completing your taxes online or in-person with a qualified tax professional. However, if you complete them online, you are not on your own.
You will receive a complete walk-through and instructions to ensure you are doing everything right. If you do find yourself in a bit of a questionable position, help is right around the corner with their knowledgeable technical support team.
You can choose one of H&R Block’s four products to complete your taxes confidently, knowing you have received every deduction to maximize your return.
Get a 20% Discount on TurboTax Online Tax Filing
This offer gives a discount on the standard retail price and provides a great way to use a top-ranked tax preparation software package at 20% off the regular cost.
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:
Must be 16 or younger on the last day of the year
Must be a US citizen, US national, or a resident alien
Must be claimed by you as a dependent
Must be related to you by blood, or step relationship, or legally adopted child/foster child
Must have resided with you for more than half of the year (special rules apply for special circumstances such as divorce)
You must have provided them with more than half of their support
What is the New Child Tax Credit Amount After Tax Reform Changes?
Under the Tax Cuts and Jobs Act (TCJA) the following new child tax credit rules will take place in 2019, 2020:
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
Claiming the Child Tax Credit
Any parent or legal guardian with a child age 17 or younger at the end of a tax year can claim the said child for 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?
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
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.
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 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.
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 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.
Did you make a successful investment this year, or did you sell a property? If that’s the case, you may need to pay capital gains tax. This is a perplexing aspect of the tax code, and we are going to make it much clearer for you.
What is Capital Gains Tax?
Investors from small fish to huge firms are all eligible to pay capital gains tax. Practically all money gained through an investment is taxable, and you need to be aware of that.
Capital gains tax is essentially investment income taxes. They apply to most common investments, such as bonds, stocks, and property. The money you get back when you sell or receive a dividend is eligible to be taxed.
How much you owe in capital gains largely depends on the tax bracket you fall into. Naturally, your income is the deciding factor in this. The more you make, the more tax you’ll have to pay. Your filing status is important, so make sure you check out the current tax brackets for your filing status.
How Long Did You Hold the Investment?
The IRS breaks investments into short-term and long-term investments.
For the the IRS, short-term investments are considered to have been held for one year or less. Anything over this is regarded as a long-term investment.
As of this writing, short-term investments are given the same tax rate as your wages. Long-term investments, however, are taxed at the reduced rates, which could be anything from nothing to 20%.
What Tax Do You Pay on Investment Income?
Many Americans invest in the stock market, and many of them make money. The profit made from the sale of a stock or bond is taxed
The amount you owe, in this respect, is determined by how long you held the investment, your filing status, and the tax bracket you fall into.
Do I Need to Pay Capital Gains on Real Estate?
Real estate is another asset you will need to pay capital gains tax on when you sell it. If you make a profit when you sell the property, you will need to pay capital gains tax on that profit.
The rate in capital gains tax mainly depends on whether it was a short-term or long-term investment.
What About Selling My Home?
Selling your primary residence works differently from selling an investment property. If you make a profit on your primary residence, the chances are you won’t have to pay capital gains taxes on that profit.
There are exclusions for this. Single taxpayers can exclude $250,000 of the gain, whereas a married couple filing together get an exclusion of $500,000 of the gain. The catch is that your spouse also must have lived in the home for a specific amount of time.
The criteria to get the capital gains exclusion is:
You owned the home for at least two years of the last five-year period.
The property was your primary home for that same period. The day of sale isn’t counted.
You haven’t taken a capital gains exclusion on your property within the last two years.
What if I Inherit a Home?
You may have inherited a home when a relative died. If you sell this home, you will need to pay capital gains tax as it will be treated like any other type of investment property. That is if it’s sold for more than the fair market value when the relative in question dies.
What About Capital Losses?
Capital gains tax doesn’t apply when an investment loses you money. It’s possible to reduce your capital gains tax liability by using the losses from one investment to offset the gains from another investment.
Let’s use an example to illustrate this. You made $15,000 in investment income last year. The problem was you lost $5,000 on a property you sold. The capital loss of $5,000 can be taken away from the investment income, thus reducing your tax liability.
Reporting Capital Gains and Capital Losses on Your Return
Form 8949 and Schedule D are the two forms you need to map out capital losses and capital gains. This will also help you to calculate whether you owe money or not as you write each item down line-by-line.
Gains are only paid after losses are taken away.
Do I Have to Pay Capital Gains Tax this Year?
Online tax filing companies are perfect for navigating your personal situation and determining whether you can claim a capital gains deduction this coming year. They will be able to guarantee accuracy and ensure you don’t have to refile your taxes or deal with a nasty audit.
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.
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.
An increasing number of people are turning to TurboTax to get their income tax prepared and filed every year. They take all the hard work and stress out of tax form preparation and will always get you the largest refund.
As you go through the process of importing income and expense information into the TurboTax Online Software, you will see possible tax deductions and credits that you may qualify for, and how much money you can save on your tax bill.
Tax Deductions & Credits You May Qualify For
Finding more tax deductions and credits is one of the great benefits Intuit TurboTax has to offer. You will get immediate information about deductions being claimed on your taxes already and ones that you are eligible to claim.
Here are a few of the best deductions and credits:
Mortgage Interest Deduction One of the best deductions for those who own homes and itemize their deductions is the mortgage interest deduction. This deduction is claimed on Schedule A and as long as your mortgage is secured by your home, you should be able to claim it.
PMI and FHA Mortgage Insurance Premiums This could be the last year where the PMI deduction can be claimed. However, if Congress renews it for 2018 you will be able to deduct it again (usually they have no problems reauthorizing it). This deduction allows you to deduct the costs of the private mortgage insurance (PMI) as mortgage interest on Schedule A. However, the loan has to have been taken out after 2007.
Earned Income Credit Although it changes yearly, the impact of the earned income tax credit remains the same: It helps fight poverty. To be eligible for this credit, you must file a yearly tax return.
Child Tax Credit Raising children is not cheap. However, the IRS understands this, which is why they have various credits and deductions for taxpayers that have families. One of these valuable tax credits is the Child Tax Credit.
Premium Tax Credit The Premium Tax Credit is one of the refundable credits put in place to allow those who qualify to be able to afford the health insurance that was purchased via the Health Insurance Marketplace. Those with moderate incomes who do not qualify for a government or employer plan usually qualify.
TurboTax is dedicated to making sure you save as much money as you can on your income tax bill each year. This is the goal of any American and they value the same thing. Using this system to file your taxes is all about getting the maximum number of deductions and reducing your payment obligation.
TurboTax Does the Work for You
Have you ever been confused by the language or directions for the IRS tax forms? Do you have trouble determining which forms you have to use?
TurboTax’s main goal is to simplify the yearly income tax process for you. They lead you step by step using conversational English to choose the correct forms, whether it is 1040, 1040A or 1040EZ, and fill in the forms correctly so you do not have to worry.
They are also capable of automatically filling in information from your place of work, banks and other financial institution which saves you time and reduces the paper work load. All you have to do is provide some basic information and they put everything in the proper places.
You can already see how the TurboTax preparation system is easier than anything you have done before. It gets even better if you use this discount coupon code. They will automatically fill in forms based on last year’s information and ask if anything has changed to ensure accuracy. All of your data is secure, perfectly private and saved in their system in case you have to stop the tax preparation process and come back to it later.
Their Smart Check scans for any errors so you can rest assured that the IRS is getting correct information. Their guarantee that is so strong that they will pay any IRS penalties a plus interest if there is any error on your report. Intuit TurboTax has the latest tax laws, updates frequently, uses top of the line security features and guarantees accuracy.
Free Tax Refund Calculator
Are you curious to see how much your refund will be? One of the best ways to have an estimation about the amount you should receive is to use one of the online tax refund calculators. The number is just an estimation, so it’s not 100% accurate, but it does give you a number. The TurboTax refund calculator shows you approximately how much your refund will be.
TurboTax Absolute Zero Now Available at No Cost to 60 Million Americans
To qualify, you have to file a 1040A/1040EZ form. Americans with a taxable income of less than or equal to $100,000 are qualified to use these forms and claim standard deductions. Independent contractors, homeowners, and also Americans with medical expenses qualify to use these forms and use TurboTax Absolute Zero.
TurboTax Help & Support
Help and support is available 24/7 for the entire tax season. You also have access to human tax experts who can answer any questions that you have. Phone assistance does have a price tag, but it is available if you need that one on one help. All tax experts are certified public accountants or enrolled agents.
TurboTax online software also features direct import of your W2 form. various help files and explanations that cover numerous tax topics. Most users are able to go through the software without going to the help files, but they are readily available if you need them. They even have video classes and tax guides available in addition to the active user community and social media accounts where tax topics are also discussed.
Every time tax season rolls around tax filers find themselves experiencing stress, worry, and anxiety. Some tax filers even delay until the last minute possible because they think it will be easier that way.
What if we told you that there is free tax software available for your taxes that will make doing your taxes easier than ever? Well, it’s true!
This time, when tax season rolls around you can avoid experiencing stress, worry, and anxiety. You don’t have to look at your taxes as a once a year chore that is a pain in the bum anymore. This year you can make doing your taxes a piece of cake.
With the software that is on the market today you will even be able to keep more money in your pocket. You no longer have to go see a tax professional. Instead you can do your taxes 100% by yourself. Not to mention the fact that when you prepare your taxes online you can receive your money back quicker than ever.
If you are someone who has grown attached to your tax professional it is time to get unattached. You will not only save yourself money but you will find that the process of doing your own taxes is super easy.
The options are limitless and we are going to take you through all of the steps. There is no need to spend more of your hard on money than you have to. So, take charge this year and start filing your own taxes online for free!
Personally, we don’t believe that you should have to pay someone to do something for you that can be easily done yourself. This is why we decided to write this article. So, now we will get right to the point so you can start filing your taxes today.
Free Online Tax Software Choices
If money is one of your biggest concerns you should consider free tax filing software’s. There are a ton of online tax software programs available for you to use. The free versions are recommended for individual use for those who are not using itemized deductions and do not own homes.
If your tax situation is more complicated there are programs available for you as well but they probably won’t be free. They even have step by step instructions and many of the programs have live chat available in case questions or concerns arise.
So, regardless of your tax situation you are sure to find a product that is budget friendly and can assist you with your tax needs.
TurboTax Free Edition
One of the most commonly used tax software’s that is available online is the TurboTax Free Edition. Tax payers turn to TurboTax because they know that this is a brand that they can trust. Not to mention the fact that TurboTax offers a variety of different online software’s so they have something that is perfect for all tax payers regardless of your tax complexity.
TurboTax is known for having easy to follow instructions and accuracy when calculating federal taxes. They cover thousands of deductions and credits. Not to mention the fact that if you are a sole proprietor, consultant, or contractor they have an edition for you. Their ultimate goal is to provide you with guidance so you can claim the maximum amount of deductions and credits possible.
H & R Block Free Edition
H & R Block Free Tax Software is another popular tax software. Their do it yourself products range from free to paid versions based on the individuals tax needs. They even go as far as to help homeowners get the best charitable and mortgage deductions. Not to mention the fact that some versions include live chat with a tax expert.
Choosing Your Tax Software
When it comes to selecting your tax software it is important that you go with one that is user friendly and easily navigable. H&R Block and TurboTax are the top selling tax software’s so keep that in mind when deciding which tax software you want to go with.