Category Archives: TurboTax

Five Taxes That Increased For Wealthy Taxpayers

Rich taxpayers may end up paying higher tax bills this season. Due to the changes in the 2012 tax law, anyone who makes enough to consider themselves wealthy will pay higher taxes on their income.

The first bill that raised taxes for the wealthy is The American Taxpayer Relief Act of 2012. This bill is also commonly known as the fiscal cliff tax bill. This law prevents rich taxpayers from reducing their bill by utilizing certain tax privileges.

The second change affecting wealthy taxpayers comes from the Affordable Care Act. Two provisions from this law went into effect in 2013. Clearly, this bill targets high-income taxpayers, but the language in the bill fails to provide a numeric value for the term high-income.

These two laws created five significant changes for wealthy taxpayers. These changes are the main causes for higher tax bills and reduced privileges.

Rich taxpayers may end up paying higher tax bills this season. Due to the changes in the 2012 tax law, anyone who makes enough to consider themselves wealthy will pay higher taxes on their income.

Tax rate increase from 35% to 39.6%

This change applies to regular or ordinary income. It affects single taxpayers who earn $400k per year and married couples who earn $450k per year. It also affects married couples who file separately if their income reaches $225k per year.

Capital gains tax increase of 5%

Wealthy taxpayers with numerous investments will pay more taxes this season. Income earned from real estate, currency, and paper assets will increase from 15% to 20%.

Payroll tax increase of 0.9%

Employers must subtract an extra 0.9% from employees who earn $200k or more. Self-employed individuals must adhere to this change as well.

Tax on net income from investments.

The healthcare law adds a 3.8% tax to single individuals earning $200k and married individuals earning $125k. This tax applies to net earnings from capital gains and other investments.

Lower dollar amounts on exemptions and deductions.

The previous exemptions and deductions for wealthy individuals no longer apply. The dollar amounts for these deductions are lower and some exemptions are obsolete. Taxpayers will need to file their income taxes before they could come up with a dollar amount for this loss. Using an updated tax software like TurboTax will reduce the confusion that may occur during the calculating and filing.

Some tax preparers may use the new laws as an excuse to raise fees for wealthy taxpayers. If you have a high income, you can avoid this headache by using TurboTax instead. As long as you are using a recent version, you will be able to accurately file your taxes with the updated percentages and new deductions, exemptions, and provisions.

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Health Insurance And Your 2014 Taxes

Tax filing season will be here before you know it, and there is a big change on the tax forms that almost 50 percent of Americans aren’t aware of. Tax filers will be required to verify that they have health insurance when they file their 2014 return, or face a penalty.

An Intuit TurboTax survey carried out by Harris Poll among over 2,000 people aged 18 or over found that around 48 percent of Americans are still unaware of this new Obamacare rule.

The deadline to avoid having to pay a penalty for the 2014 tax season has already been and gone, although 87 percent don’t actually realize that. However, about 62 percent of Americans without health insurance do realize that they will have to pay some sort of penalty for not having current and valid health insurance.

Sacha Adam, the TurboTax representative in charge of the affordable care act pointed out that most Americans simply don’t register or don’t understand the important relationship between their taxes and their health care. This is despite the fact that open enrollment is still taking place at the moment.

People living in the southern states are less likely to have health insurance than those living in other states, although about 90 percent of all Americans have health insurance.
Premium tax credits have been designed to make health insurance more affordable for families on a low to moderate income, although almost 50 percent of all Americans are not aware of these.

Almost 75 percent of those who bought health insurance through the health insurance open marketplace say that they will renew their insurance the next year. TurboTax has a strong presence in the San Diego area and the company offers information and tips on Obamacare and many other tax and health insurance topics at TurboTaxHealth.com.

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Maintain Security When Filing Taxes Electronically

How to maintain security when filing taxes electronically

Millions of U.S. taxpayers have used electronic software applications like TuboTax.com to e-file their taxes, many doing so from the home desktops. Roughly six percent more consumers are using this method of submitting tax forms, than the numbers who did so in 2012.

Though e-filing is convenient and easy, it can create a risk to the taxpayer, with the filing of fraudulent tax forms and and identity theft. These undetected thieves were able to get away with over three and a half billion dollars in 2011, according to the Inspector General.

The following tips for protecting your information and identity are offered by experts in internet security

Don’t assume all emails genuinely originated from the Internal Revenue Service!

One method of committing fraud is to send an email to the taxpayer, pretending to be the IRS. This form of gaining access, known as phishing, allows malware access to the user’s computer, to gain access to important taxpayer information. The emails can look like official requests from the government office and may claim some kind of problem with a social security number or taxpayer information. Many taxpayers have provided such information, unaware they are handing it over to an imposter.

The IRS never sends emails or text messages to taxpayers, to clarify personal identity or correct taxpayer information. Any person who receives a suspicious email message should forward it to the IRS, without opening the message itself or any attachment.

Keep Personal Information Safe

Aside from being aware of false email messages, taxpayers can take additional measures to protect personal data. Using a different password for electronic tax filing, from those used for other internet accounts, is one safeguard that makes it more difficult for cyber criminals to get your information.

Avoid sending tax files to the IRS in public locations where wireless internet is available. These connections a re open to all users and can be accessed by anyone, thus improving the changes of gaining access to an individual’s personal computer. Home networks that are password protected are best for sending tax forms.

Social networking sites like facebook are other places criminals hang out to gain personal information. If your site includes minor children, the thief now knows you claim dependents on the tax return, which allows them to make fictitious tax returns look more like the real thing.

Breaches in internet security are another cause for concern. The recent incidents with Target, Sony, and other retailers shows how easy it can be for cyber thieves to get account and personal address information.

No Refund

No Refund (Photo credit: cheerfulmonk)

Though these incidents can occur, the internet e-file process is generally secure. There are red flags to look for the keep your information safe. Filing Taxes using the e-file method and software such as TurboTax.com can make the tax filing process a much simpler ordeal that saves time and money.

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Turbo Tax 2014 Released to Solve Your Tax Return Troubles

Day 56 - Tax Time

Day 56 – Tax Time (Photo credit: absoblogginlutely)

TurboTax 2014 will enable you to get a tax refund that will make you a richer man. It is of significant advantage to you, because it has the capability to find loopholes in the contemporary tax code.

Additionally, TurboTax can also track any changes in the tax code for you only, over several years.

The tax return software guides you through any bureaucratic obstacles in the process of filing the relevant forms. It takes you systematically through each step, while offering you value for your tax return.

This software comes with an instruction manual, that originates straight from the IRS. The process is very straightforward and simple to follow, with no stone left unturned. In regards to the filing taxes, these tax programmers are more advanced that most laymen.

Most persons procrastinate when it comes to the filing of their taxes, but TurboTax ensures that you get the best deal on any taxes you pay. Their information processing ability, through the use of e-files, contributes towards the achievement of your goals in an impeccable manner.

Paper and pen, as used in the old school, are now tools of the past. Today, the hyper-textual environment of cyberspace is where everything is focused, and it is common knowledge that anything is possible in cyberspace. The umbrella group for TurboTax is Intuit Incorporated.

A connection to the Internet is all that is required to use TurboTax 2014 efficiently. It can also be downloaded online. There are several benefits of TurboTax, including the fact that the methodology it follows is neither complex nor complicated. Each user of the program is also given individualized treatment.

TurboTax’s deductions and reimbursement plan will satisfy you as you seek to process your tax returns. There are no risks involved and the program is currently the #1 software available on the market. In fact, with TurboTax 2014, you can consider yourself to be in safe and reliable hands.

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Filing Your Taxes With TurboTax 2014

Tax time can be stressful for many reasons, but if you use TurboTax 2014 may be the year that filing taxes becomes as easy as possible. TurboTax software can help you get the tax advantages that you are entitled to, and the following list highlights why millions of people file their taxes with TurboTax.

Easy to Navigate

"YOU ARE ONE OF 50,000,000 AMERICANS WHO ...

“YOU ARE ONE OF 50,000,000 AMERICANS WHO MUST FILL OUT AN INCOME TAX RETURN BY MARCH 15. DO IT NOW^ AVOID THE RUSH…. – NARA – 516202 (Photo credit: Wikipedia)

The best software is easy to follow and easy to use, and this is the hallmark of TurboTax software. The steps take you through detailed questions that verify your information. You will end up with a complete picture of where you are in terms of your tax status and deductions.

TurboTax keeps you from duplicating work since the information from your federal income tax return can be efficiently transferred to your state tax return. This helps keep tax preparation time to a minimum, and the transfer feature helps to maximize the accuracy level as well.

Learn All About Taxes

You can learn a lot about current tax deductions and credits by using TurboTax software, and this knowledge can give you a lot of advantages when you do the work to file your taxes.

Many life events can affect your tax obligation, and things like owning a home or having a child may entitle you to numerous tax deductions. TurboTax can help you itemize important deductions, and tax credits may result in a helpful refund.

TurboTax empowers many people as they grow in their knowledge and understanding about taxes. The straightforward questions that you answer will help you understand your life and financial habits.

Get Help Filing Taxes

Many people appreciate being able to file taxes on their own and online, and the additional resources provided by TurboTax makes the process even easier. The AnswerXchange is an online community that allows you to ask tax questions in real time.

The AnswerXchange representatives include enrolled agents and CPAs who are ready to answer your tax questions. Questions may arise as you work with your TurboTax software, and having experts to help when needed will ensure that you can take advantage of good opportunities for lowering your tax liability.

Tax Software

TurboTax software is easy to use even if you are new to filing taxes this way. The AnswerXchange is an ideal backup for anyone concerned with having an expert available during the process, and you may file your taxes with confidence every time you use TurbTax.

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How To Choose The Right Filing Status For Your Taxes

English: Map showing the status of same sex ma...

English: Map showing the status of same sex marriage in the USA. Same-sex marriage recognized Unions granting rights similar to marriage Unions granting limited / enumerated rights Foreign same-sex marriages recognized Same-sex marriage banned by statute Same-sex marriage banned by constitution Same-sex marriage and similar unions banned by constitution (Photo credit: Wikipedia)

When filing taxes, it is crucial to indicate your current status. This is because this status actually determines the amount of money you should pay in taxes. It may also be important in deciding whether to file tax returns or not.

Whenever you have to indicate your status, it is vital that you consider the last status you had as at 31 Dec. However, when you are in a situation where more than one status is applicable, it is safe to go with one that will require you to pay the lowest taxes possible regardless of whether you are using TurboTax 2014 or not.

Certain tax rules also bind same-sex married couples regardless of where you were married. If the marriage is legal (performed in a state or country that recognizes same sex marriages), then you should use the married status options in the 2013 federal tax return forms. This is mandatory even if both of you live in a state that opposes same-sex marriages. You can visit www.irs.gov for additional information about your taxes.

In order to choose the right status for filing taxes, here is a guideline that explains each of the five.

Single
This status can be used with anyone who has never been married, is divorced or no longer married according to the statutes of that state.

Married Filing Jointly
When filing taxes using TurboTax 2014, this status indicates that married people can choose to file one tax return as a couple. Even if your partner died within that year, you can still use this status.

Married Filing Separately
This is the opposite of married filing jointly. Each spouse can file their taxes individually and it is useful when you want to reduce the taxes that you pay. Some couples also prefer this for their tax accountability.

Head of Household
In TurboTax 2014 or any other means you use when filing taxes, this status is used by single people who have dependents. To be eligible, you must be the provider of more than 50% of the total costs of running a home. It is also significant to know any other rules that come with this status.

Qualifying Widow/ Widower with Dependent Child
In case you are widow or widower with a child, then this is the right status for you. However, it is bound by number of conditions.

A tax filing software such as TurboTax 2014 can help you choose the right status. You can also refer to 1040 Central on the IRS website for further assistance.

Furthermore, requirements for each status can be obtained from Publication 501, Exemptions, Standard Deduction, and Filing Information on the IRS website or by dialing 1-800-TAX-FORM (800-829-3676).

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