Turbo Tax Home and Business
Most people probably don't need this level (Home and Business) of the Turbo Tax line but my taxes got a little more complicated this year and at the discounted price I thought it prudent to go with this elevated version. I have not completed my taxes yet so can't say it worked flawlessly from start to finish but I have never had problems in the past with other Turbo Tax products. This particular vendor was excellent, shipped quickly in a sealed package so I have no reason to expect anything other than Turbo Tax's excellent service again this year. Last year was a problem one for Turbo Tax as they tried a strategy geared toward forcing users up a notch or two. For example someone who, perhaps, had always used Deluxe was told they needed to upgrade a level or two. However, user backlash was severe and Turbo Tax has pledged not to repeat this ploy. Of course one cannot expect to buy the lowest version and expect it to handle a complicated home business properly but , then again, someone who has only made, say, $1,000, from a hobby business over the year should not be expected to buy Home and Business. Deluxe or Premier should work quite well for them. Considering how much one can save in taxes using Turbo Tax the typical price on eBay is a steal. If you are not sure how much you should be paying do a search for different levels of Turbo Tax and use the "completed listed" option to see what they are going for. Many people are uncomfortable buying anything but a "new" package but I have had very good luck with "once used" packages. Most importantly make sure what you are buying has what you are expecting. For example not all packages have Federal + State + Federal eFile which is what I look for. State eFile is not, in my opinion, worth the extra money as you can simply print out the state form and mail it in or take it in your local County/City office. If you plan on sharing your Turbo Tax with friends and relatives (quite possible) make sure that you have enough "files" in your package. If you are buying a used package one or more may have been used. You also need to be aware of the number of e-files you are entitled to. Also, in the past, you could typically do more than one state return as long as it is the same state. Sometimes this information (how many federal, how many same state, how many e-files is not easy to find (I don't think Turbo Tax likes to make it easy to find) but the number is generally very generous.
I had my taxes done before by a "professional" and must say the Turbo Tax experience was much more satisfying. Despite what any tax prep service on-line or otherwise might claim they are not going to get you out of a jam with the IRS. The best strategy - "honesty is the best policy" - no joke. Along those lines, Turbo Tax does have a very nice feature which checks your return for IRS "red flags" and gives you a rating as to how likely your return is to be audited. I don't know how accurate it is but it is comforting. Certainly if Turbo Tax showed a high probability of audit I would be very cautious and perhaps go back and ease up on a few deductions if possible. You have to weigh the few bucks you may be gaining through a questionable deduction to the hassle of an IRS audit. Before Turbo Tax, the Internet, etc. I used to do my own taxes. I once neglected to check a couple of boxes I should have and got a letter from the IRS and eventually a call from an IRS agent. He went over my taxes with me over the phone and found another error I made. I ended up getting an additional $400 refund. I expect this was an unusual IRS encounter but, needless to say, I was relieved and happy.
One final note, regardless of how you file your taxes there are numerous scam artists out there who can sound very threatening and very convincing. They may have some convincing personal information and will threaten you will jail time if you do not pay-up immediately. DO NOT BE FOOLED. The IRS does not operate like that. The IRS will initiate contact via a letter and follow up with a phone call. You should follow up ANY contact from the IRS will a phone call to the IRS. That is, you call the IRS and ask if they contacted you. Make sure you have a legitimate IRS phone number. Get the name and number of the agent you spoke with. If you are not satisfied with the conversation call back the next day and ask to speak to another agent.
Please check the web for many, many descriptions of tax scams and what to do about them.
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