Filing Form 1040 With TurboTax Deluxe. If your taxable income is $100,000 or more, you have unreported tips, distributions, self-employment earnings, income as a partner in a partnership or a shareholder in an 'S' Corporation or income from an estate or trust, you must file Form 1040. TaxAct vs TurboTax: Customer Service. TurboTax and TaxAct both offer customer support by phone and through a searchable knowledge base. TurboTax’s in-app help content is more robust than what TaxAct offers, and customers can have a tax professional check their return for accuracy for an additional fee through the TurboTax Live service. Updated on Monday April 8th, 2019: If you bought a hard copy of TurboTax and, with the box opened and the software installed, you now realize that you need to upgrade to a higher version of TurboTax then don’t worry – It’s really easy to do (unlike downgrading which is a little bit more difficult). You can upgrade from almost every TurboTax version within the software itself and without having to return it to the store that you bought it from. Let’s take a look at how this is done and if it’s worth it. How to upgrade TurboTax versionsOnce you have your version of TurboTax installed and open on your computer, just click on the “Upgrade for Additional Help” link at the top right of the window (should be the same link on both PC and Mac versions). A new pop-up will appear and here you’ll be able to choose the version that you need and click “Upgrade Now”. Here you’ll be able to choose the version you need and will be taken to the payment section to process the upgrade. Just remember that once you pay for the upgrade, you won’t be able to downgrade to a lower version if you change your mind at a later time – It’s a one-way street. Not all versions are upgradable (specifically, you can not upgrade to the Business version from any of the other Turbotax versions due the complexity of the software). These are your available upgrade paths:
What’s the cost to upgrade?The cost to upgrade will depending on the version that you’re upgrading from and the version you’re going to. Intuit will charge you the difference between products based on the suggested retail price of both products (even if you bought your existing version somewhere on sale for less). Here are the respective upgrade costs for the Federal versions (that excluding any fees for additional State tax returns):
Is it worth upgrading?While upgrading your TurboTax version is relatively easy to do, in most cases when you account for the software you already bought and the upgrade price, together it will likely cost you more that just getting the version you needed in the first place (especially if you used one of our many TurboTax discounts to make the purchase). You do have an option to return your TurboTax software within 60 days from the date purchased, even if you bought it at a third-party reseller. Here’s more info on how to request for a refund on your TurboTax software. Having difficulties?If you’re having difficulties or encountering issues, then we’ll do our best to help you out. Leave your questions in the comments section below. You can also find more details directly in TurboTax’s help forum. Dvd fab 9.2.1.5 download. © TheStreet TurboTax vs. H&R Block: Which is Better in 2019?Should you use TurboTax? Should you take your taxes in to H&R Block? Should you just skip the whole thing altogether, bury your money in Zihuatanejo and hope the IRS won't notice? (Nope. Nope. Definitely not that last one. It's a felony.) There are few simple answers when it comes to complicated money issues. Fortunately, this is one of the few exceptions. If you are among the 92% of taxpayers expected to claim the standard deduction this year you should use H&R Block online. Both they and Intuit's TurboTax offer free filing options for taxpayers who don't itemize their taxes, but only H&R Block's software incorporates the full 1040 form. What's more, on each premium tier H&R Block is noticeably cheaper while offering a substantially similar product. No matter what your filing situation, in 2019 it's likely that H&R Block is the better choice. What You Need to Know About Tax Preparation?Americans spend about $12 billion on tax preparation each year and a staggering 9 billion collective hours of labor. This is expected to increase significantly this year as Americans adapt to the changes made in the 2017 tax cuts. Two important reasons drive this. The first is complexity. The U.S. tax code contains thousands of deductions, credits and other carve-outs that can save a savvy taxpayer money. However, most people simply don't understand everything they're entitled to, so making the most of your taxes takes expertise. The second reason is time. It takes hours, sometimes days, to do your taxes right. Not many people can stomach the amount of paperwork necessary to avoid an IRS recalculation notice. Instead, we let accountants and, increasingly, software do it for us. And for most taxpayers, that means a trip to either H&R Block or TurboTax. A Note on the 1040As of 2019 the IRS has dramatically reduced the length on the 1040 to simplify it. In reality, all of the information formerly requested on the Form 1040 has simply been moved to a new set of forms, Schedules One through Six. While the 1040 is, in fact, much smaller than before, your taxes have not grown less complicated. The paperwork was simply manipulated to make it appear that way. How TurboTax WorksTurboTax is all software. Most users will go to the company's web portal and file their taxes directly through there, although you can also purchase a standalone copy. Unless you operate a business, however, it is very unlikely that you will need the standalone copy of TurboTax. This article will discuss the company's online product, which is its most popular option and can fill the needs of almost all individual taxpayers. Here's what you need to know about filing with TurboTax. Free OptionTurboTax allows you to file one state and one federal return electronically for free, although only if you use a simple 1040 using the standard deduction. Pricing• TurboTax Deluxe - $60 base price, plus $40 per state return • TurboTax Premier - $100base price, plus $40 per state return • TurboTax Business/Self-Employed - $120 base price, plus $40 per state return • TurboTax Live - approximately $70 - $80 more per level TurboTax FeaturesTurboTax breaks its features up according to which additional paperwork you have to file. Each version includes all the features of the version before it. TurboTax FreeThe free version fills out a simple 1040 with the standard deduction and a few above-the-line tax credits such as the Earned Income Credit and the Child Tax Credit. This version can handle basic W-2 earnings and some limited investment income and will e-file your federal tax return and one state return. This is a limited option, even though most filers can still use it. TurboTax's free version does not include the new Schedules One through Six, which means that common above the line deductions such as student loan interest now require you to pay for TurboTax Deluxe. However, if used the 1040 EZ in previous years this will probably be the right option for you. TurboTax DeluxeTurbo Tax Deluxe can handle line-item deductions (Schedule A) and all above-the-line deductions such as student loan interest and health savings accounts. It can also handle some situations of freelance income (Schedule C-EZ). This is the right option for most W-2 taxpayers whose qualifying deductions add up to more than the standard deduction. If you have an expensive home, made substantial charitable contributions or suffered a significant property loss during the year, Deluxe might be right for you. This might also be the right option for you if you made a relatively small amount of money as a contractor with comparatively few expenses, such as driving for Uber or renting out an Airbnb. TurboTax PremierThe Premier version can handle income and deductions related to investments, rental property or the sale of major property and associated depreciation (Schedule D). In all likelihood this is the most niche TurboTax product given that few Americans have active investment portfolios beyond their retirement account. This is the right TurboTax product for someone who made income off the sale of an investment or real property over the course of the year, including the highly volatile cryptocurrency market. TurboTax Self-EmployedThis version can handle 1099 income and the Schedule C form on which you will report both earnings and losses. If you own your own business or primarily relied on 1099 income during 2018, you will need this version of TurboTax. However, take care. If you have a side hustle with just enough income to declare, the $160 that TurboTax will charge for a state and federal filing might eat up most of your profits. In that case you should consider either Deluxe or simply filing yourself. How H&R Block WorksH&R Block has two options, its retail locations and its (relatively new) self-filing software. The company's online software works much like Intuit's TurboTax. You go to the website, fill in your financial information and choose the product that works best for you. Its retail locations look and feel much like visiting an accountant, where you hand your taxes over to someone who then processes them for you. For the average taxpayer H&R Block's retail accountants are generally a poor choice. During tax season it employs mostly seasonal tax preparers who earn an average $10 - $22 per hour. This is comparable to the pay scale of a service industry worker, professions which demand far less skill than accounting. Accordingly, seasonal tax preparers at H&R Block rely entirely on software to do their job. While the company requires some degree of experience the work is done entirely by their proprietary system. This is not bad in and of itself, as taxes lend themselves to computer solutions, except for the expense. Having someone do your taxes at H&R Block can cost hundreds of dollars, often as much or more as taking your taxes to a full-time accountant. While the company's website doesn't advertise its full pricing model, in this past this writer has received quotes of more than $450 to do self-employment taxes. This is more than double what you would pay to file yourself. In the end, the result is the same. Someone is punching your financial information into a computer and getting the result. If you would like to save yourself that time, seek out a full time accountant. Otherwise, here's how H&R Block's software stands up. Free OptionH&R Block online allows you to e-file a simple 1040 and one state return for free. This only applies to users taking the standard deduction but includes Schedules One through Six. Pricing• H&R Block Deluxe Online - $30 base price, plus $37 per state return • H&R Block Premium Online - $50 base price, plus $37 per state return • H&R Block Self-Employed Online - $80 base price, plus $37 per state return • H&R Block Tax Pro Review - $120 base price, plus $37 per state return H&R Block FeaturesLike with TurboTax, the H&R Block model breaks up its pricing tiers by the forms you file and how many deductions it will look for. Each version includes all the features of the version below it. H&R Block Free OnlineThe free online version fills out a simple 1040 that takes the standard deduction and most above the line tax breaks, including the new Schedules One through Six. This is the right option for almost all taxpayers who have W-2 income and take the standard deduction. Since H&R Block's free version incorporates the complete 1040 (Schedules One through Six, which account for most above-the-line deductions), almost all taxpayers can use it as they have in the past. H&R Block Deluxe OnlineThis version can handle line item deductions such as mortgage interest and charitable donations (Schedule A). It can also handle the few above-the-line deductions not addressed in the free version, such as health savings accounts. This is the right option for taxpayers who do not take the standard deduction. If you have an expensive home or made significant charitable contributions this will likely be the right product for you. H&R Block Premium OnlineH&R Block Premium Online can handle investment income and losses (Schedule D) and rental property income (Schedule E). It can also handle self-employment tax situations with limited expenses through the Schedule C-EZ.This is the right option for taxpayers who either made or lost significant amounts of money by selling investments in 2018. It is also a good option for owners of rental properties and people with a relatively small amount of contractor income, such a part-time drivers for Lyft and occasional Airbnb hosts. H&R Block Self-Employed OnlineThis version can handle business owner income and expenses through Schedule C and incorporates business-specific deductions. This is the right option for taxpayers who are primarily self-employed, who own their own business or who have more than $5,000 in self-employment expenses. (For example, someone who has spent a significant amount of money trying to launch a business or freelance career while holding a day job would need this option.) TurboTax and H&R Block LiveBoth companies now offer live consultation options where, in addition to filling out your taxes online, you can also chat directly with an accountant to ask questions and get advice. This is not a bad idea in theory. For users who would like the extra peace of mind that comes with getting to ask a few questions while they fill out their taxes, and who don't mind paying a fairly substantial premium to do so, the live version of both companies' software might be a sound investment. In particular, contractors, business owners and the self-employed who are interested in live support should consider H&R Block, as their option offers substantively the same features as TurboTax for almost half the price. However, live support is a very limited feature. It can add $80 or more to your price tag for the chance to ask a few questions about a very automated process. If you have a more complicated tax situation or more than just a few questions, neither H&R Block nor TurboTax is the right option for you. If this is your situation, hire an accountant. Find someone who you do not have to Skype with and pay them the extra money to make sure your taxes get done right. There are a few areas in life where you should not shop for bargains. A discount fire extinguisher is always a bad idea. Lowest-bidder brake pads are a good reason to take the bus. There was never a sentence that started with 'so I found the cheapest accountant available' that ended well. If you have real questions about your taxes, go to the professionals. A Special Invitation: Do you want to learn more about planning for and living retirement from the nation's top experts, including Ed Slott and Robert Powell, the editor of TheStreet's Retirement Daily? Want to learn how to create tax-efficient income in retirement and how to manage and mitigate all the risks you'll face in retirement? Then sign up to attend TheStreet's Retirement Strategies Symposium on April 6 in New York City. For a limited time, you can attend this extraordinary symposium for $149 -- a cost savings of $50 off the general admission price of $199. You can see the full day's agenda, learn about the guest speakers and sign up here for this special event. This article was originally published by TheStreet.
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