December 19, 2020

Turbotax Free Edition

Turbotax Free Edition if you are looking for top-of-the-line tax software so that you can DIY your tax returns for the 2019 2020 year.

You're probably considering turbo tax we've all heard of turbo tax in this video I am covering a review for the 2019 2020 software and what you need to know in terms of pricing to, get your taxes done with turbo tax hey guys welcome back to the college, investor investing and personal finance for Millennials we're talking about turbo tax today and we all know that this is a major player. And the tax software industry and so I was wondering what exactly are you getting with turbo tax and is it really free you may be able to. File. Your taxes for free with turbo tax under a very specific condition and that is if you are a w-2 income earner and if you qualify for the Earned Income Tax Credit or the, child tax credit so if. You have those one of those two things plus the w-2 you could file at your federal and your state return for $0 however you can't take any, other deductions so if you have things like pain on student loan interest or you have, a health savings account you wouldn't be able to qualify for that free plan you'd have to upgrade, to the deluxe or the premier plan and let's go over those pricing packages on turbo taxes website okay so turbo tax has a couple of different plans for you depending on your, situation so I've covered the Free Edition but I think, most people are probably going to align with the deluxe edition or the premier edition so LX is $40. And then you'll get to add some homeowner tax breaks it looks like you can get some one-on-one help from a turbo tax specialist, all these different things and then I like how it has a breakdown of okay I could get tax deductions here mortgage of, property deductions and so on you may even end up falling under the premier plan which is seventy dollars in which you can auto import your, investment info and tax data which is a big time-saver I definitely appreciate being able to import, forms rather than typing them and manually it leaves less. Room for error and if you are self-employed then you'll be looking at the 90 dollar self-employed plan, what I like about this one is it also includes one year of QuickBooks in fact if you are a QuickBooks user now you can import your data directly in a, TurboTax which saves time however if you are just, getting started and you want to add QuickBooks to your business plan you can get that if you've not been. A QuickBooks user in the past and it's true that TurboTax often has high prices in fact we found that they are at the top of the market when we compared these to other, software companies out there, so you'll want to do your due diligence I wouldn't recommend the deluxe or the premier plans if price is a. Deciding factor for you also a side note TurboTax it tends to adjust their prices throughout the tax season so you'll want to lock, in your rate early on that's typically in December in January when the prices will be offered at its lowest so if you plan on doing deluxe premier or self-employed you'll.

Want to lock in those rates as soon as possible once you have aligned with the right plan for you you can go, ahead and jump into the tax software let me show, you a complete walkthrough of what the TurboTax software looks like once you're inside when you first get started with TurboTax you'll need to obviously sign up. If you have been. A previous QuickBooks user or a mint user you can use the same login information to log into TurboTax I'll go ahead and use new information so you can see exactly what it looks like when you sign up for, the first time. When you first log in there will be a screen to point you in the right direction so you, can click on any of these little boxes and then it'll take you to the right step so I'm going to select that I have, a job at w-2 and if I click on anything else it's going to recommend the right package for me so when I clicked I'm self-employed then it's going, to recommend the self-employed plan so. For a simple w2 return it's going to stick us into the free edition so let's go ahead and click file. For $0 then you'll consent to providing your information through the software and then it'll just prompt you through the different, questions I really like how simplified the dashboard is there's not a whole lot of areas to click out of and I think the questions, are really straightforward I don't feel like this is confusing at all this, is cool it says if you have a PDF copy of last year's return and then you can upload it and start pulling info which is really nice for, the sake of this tutorial I'll just go ahead and type in my info I really, like this screen – lets get an idea of your financial picture so there's a lot of different things that could.

Have occurred throughout the year so you're just going to click on, the box that makes sense for you and then it'll walk you through the right forms to fill out then remember that the. Free edition only counts if you're a w2 income earner or if you qualify for the Earned Income Tax Credit.

Or the child tax credit so let's go ahead and keep going then you'll just input your, personal information I'll go ahead and just put in the dummy information for now and we'll get to the filing status which is single in this example and click continue and then it'll give you a nice summary I like, how at the end of inputting. My information that'll give me a quick summary just to make sure everything was put in correctly then TurboTax is going to try to upsell you here we're still in the free edition. But it's also asking if we'd like to get advice and specialist support I would go ahead and, skip this for now especially if you are finally in a simple tax return or you've.

Had experience filing your taxes on your own before as well so you. Can see up at the top of the screen the tax return is broken into different sections so you'll first start with wages and income followed by deductions and credits and then other miscellaneous, tax situations and then you'll do a review of your federal return before.

Filing you once you get done filing your w2 information it's going to show you your federal refund so far this number can change, as you input new information and TurboTax will give you the. Best estimate of what your potential refund or.

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