TurboTax is arguably the most widely-used self tax return preparation software in the United States . The software helps individuals with limited tax knowledge prepare tax returns without the help of a tax professional.
Who Should Use TurboTax for Tax Return Preparation?
Anyone who is not comfortable preparing their own tax return and who doesn’t qualify for free tax preparation services may wish to consider using TurboTax. The tax software walks users through the tax return process and asks appropriate questions along the way, taking the answers provided and leading users in a certain direction. The software is not foolproof, though. If the answers are not answered correctly, the software may lead someone in the wrong direction (i.e. report an incorrect amount or complete the wrong form).
Interesting Features: Audit Center and 100% Accuracy Guarantee
TurboTax provides a downloadable tax audit support module for users of the basic, deluxe, premier, and home & business versions of the software. According to the TurboTax website, this module helps TurboTax users figure out what their tax notices mean and what to do about them. TurboTax goes as far to say that if any penalties or interest (federal or state) are due to a TurboTax error, the company will reimburse those amounts.
Advantages and Disadvantages of Using TurboTax to Prepare Tax Returns
Advantages - TurboTax developers have apparently put much time and effort into researching tax laws and IRS guidance in order to make sure the tax software is comprehensive and up-to-date. Individuals who are not familiar with tax law will benefit from using the version of TurboTax that includes the appropriate features for their particular tax situation (types of income and deductions, life events that occurred during the tax year, etc).
Disadvantages - Those who are more adept at tax law than the average American might feel stifled by the way TurboTax asks questions and drives the whole tax return preparation process. An experienced tax professional may certainly be able to quickly fill out a tax return by hand faster than they could produce a return in TurboTax by answering all of the questions and letting TurboTax do the work. An individual’s comfort level with tax law and confidence in his or her ability to prepare an accurate tax return should factor into whether to use TurboTax or do without.
Deciding Not to Use TurboTax for Filing Tax Returns? Where to Find Federal and State Tax Forms
Federal tax forms are available on the IRS website for anyone to download and fill out if they are so inclined. State tax forms are a little more difficult to locate than IRS forms, but are typically available for download from the state’s department of revenue or similar state tax agency’s website. Also, state tax forms can often be obtained by calling the state or visiting the state agency in person.
Resource: TurboTax website
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