How Long To Do Taxes On Turbotax


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Turbotax Automatically Pulled In My Salary From My Full

Step By Step TurboTax for Beginners: File Your OWN Taxes This Year! 2021

Then came the actual filing part for my full-time job. I had prepped for this moment by downloading a PDF version of my W-2 on my computer, but this turned out to be an unnecessary step.

All I had to do was enter Business Insider’s employer identification number, which I found on my W-2. TurboTax did the work for me, locating and uploading my W-2 on my behalf. This was a delightful surprise.

Between uploading last year’s documents and this, my mood had turned from “not so good” to “good.”

Real Tax Experts On Demand With Turbotax Live Basic

Get unlimited advice and an expert final review. Done right, guaranteed.

  • Estimate your tax refund andwhere you stand

  • Know how much to withhold from your paycheck to get

  • Estimate your self-employment tax and eliminate

  • Know which dependents credits and deductions

  • Estimate capital gains, losses, and taxes for cryptocurrency sales

  • See which education credits and deductions you qualify for

The above article is intended to provide generalized financial information designed to educate a broad segment of the public it does not give personalized tax, investment, legal, or other business and professional advice. Before taking any action, you should always seek the assistance of a professional who knows your particular situation for advice on taxes, your investments, the law, or any other business and professional matters that affect you and/or your business.

How Long Does Turbotax Take

Return Time to Prepare and Complete
Complicated Around 1-2 hours

Turbotax is meant to be an easy alternative to visiting a tax specialist or tax service company in person. Because of this, the time it takes one to prepare a tax return is drastically reduced. For instance, depending on the return, Turbotax may take:

-On average: For an average tax return which is done through Turbotax software, one can expect to spend about 1 hour preparing their return, sometimes less time is required.

-Complicated returns: For more complicated returns, such as a return that involves more than one dependent, or returns that involve credits or plenty of deductions, one can expect to spend between 1 to 2 hours while preparing and completing their tax return.

Turbotax makes it relatively easy for anyone to use their service, complete with on-site help if its needed. However, sometimes returns are longer and may take longer to complete. All Turbotax tax returns which are filed electronically should be received by the government within the same day. Those expecting a refund can expect a refund within 21 days of filing.

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How Do I Pay My Taxes Online

Paying your taxes online is straightforward and easy. If you file your taxes by hand, the amount owed on your return can be submitted online directly to the IRS through its Direct Pay web portal.

The portal allows you to pay online or over the phone with a bank account for free or by debit card, credit card or digital wallet for a fee.

The IRS offers you the ability to submit payments for the following returns through Direct Pay:

  • Form 1040 Health Care payments

You can also submit payment through your online tax platform. Depending on the provider, you may be able to pay by:

How To Store Tax Records

Which Receipts Should I Keep for Taxes?

As I reviewed the IRS guidelines, I noticed that they did not specify a particular method on how to store your records. That means that if you prefer, you can keep an electronic back up of your tax records. You can also keep them in the traditional paper form as well, its up to you.

If youre trying to explore some options for digital storage here are a few you may want to check out:

  • Scan/Save: The easiest way to save and store that data is to go ahead scan and save the copies. You can put it on an external hard drive where you can store in a secure place.
  • DropBox: They specialize with digital storage and have several plans available including free, professional, and team accounts.
  • Amazon CloudDrive: Amazon also has a digital storage service that is free for the first 5 GBs.

Of course, you have to weigh which options would be best for you and your organizational needs. Since much of these records have sensitive financial information, please make sure whatever you choose is secure.

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Gather All Of Your Tax Documents

If you’re expecting a refund, you might be eager to file your tax return as soon as you can. Throughout January, February and even March, you can still receive important tax documents in your mailbox, email or online.

Collect all the tax documents needed for your taxes before you begin, such as your

  • tax forms that report other types of income,
  • tax deductions, and

If you file without one of these forms, you might need to amend your tax return later.

Take a minute and think about anything you did in the past year that might impact your taxes, such as:

  • Opening a new savings account
  • Selling stocks or mutual funds
  • Paying college tuition or student loan interest

What If I Dont Have An Immigration Status That Authorizes Me To Live In The Us

Many people who are not authorized to live in the United States worry that filing taxes increases their exposure to the government, fearing this could ultimately result in deportation. If you already have an ITIN, then the IRS has your information, unless you moved recently. You are not increasing your exposure by renewing an ITIN or filing taxes with an ITIN.

Current law generally prohibits the IRS from sharing tax return information with other agencies, with a few important exceptions. For instance, tax return information may in certain cases be shared with state agencies responsible for tax administration or with law enforcement agencies for investigation and prosecution of non-tax criminal laws. The protections against the disclosure of information are set in law so they cannot be rescinded by a presidential executive order or other administrative action unless Congress changes the law.

Knowing the potential risks and benefits involved, only proceed with an ITIN application or tax filing if you feel comfortable. This information does not constitute legal advice. Consult with an immigration attorney if you have any concerns.

Read Also: How To File Your Taxes Online For Free

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How To Report Crypto Capital Gains In Turbotax

1. In TurboTax – in the left hand menu, select Federal.

2. Scroll down to investments and savings and select show more.

3. Next to stocks, cryptocurrency, mutual funds, bonds, other, select start.

4. Select add investments then continue.

5. Select enter a different way in the bottom right.

6. Select cryptocurrency then continue.

7. Select upload it from my computer/use a CSV file then continue.

8. Under ‘what’s the name of the crypto service you used?’ from the drop down tab select‘other’and for name enter‘Koinly’then hit continue.

9. Upload your Koinly TurboTax Online report. Please note,If you’re using TurboTax Desktop, you can upload your Koinly crypto tax file by going to ‘file‘, then ‘import‘, then ‘from accounting software‘.

10. Double check your summary to ensure the totals, number of disposals, proceeds and cost basis are correct.

11. Select continue, then confirm, then next. You’re done with this section!

Gather Tax Filing Information

What is a Tax Refund? – TurboTax Tax Tip Video

Youll need to do this whether youre hiring a tax preparer or doing the tax filing yourself. The goal is to gather proof of income, expenses that might be tax-deductible or win you a tax credit, and evidence of taxes you already paid throughout the year. Our tax prep checklist has more guidance, but heres a short version of what to round up:

  • Social Security numbers for yourself, as well as for your spouse and dependents, if any.

  • W-2 form, which tells how much you earned in the past year and how much you already paid in taxes.

  • 1099 forms, which are a record that some entity or person not your employer gave or paid you money.

  • Retirement account contributions.

  • State and local taxes you paid.

  • Educational expenses.

Read Also: How Much Will I Get Back In Taxes From Unemployment

What Was The Big Criticism

Big names, like Intuit’s TurboTax and H& R Block, faced much criticism back in 2019 after a ProPublica investigation detailed how the companies limited the program’s reach by making free options more difficult to find online and instead figuring out a way to steer eligible taxpayers into products that weren’t free.

ProPublica’s reporting included pointing out that Intuit added code to the Free File landing page of TurboTax that hid it from search engines like Google, making it hard to find.

In January 2020, the IRS announced some changes designed to offer more consumer protections.

One such change: Tax preparation firms agreed that they would not exclude “Free File” landing pages from an organic internet search.

The IRS suggested that taxpayers search for standard labeling: “IRS Free File program delivered by .”

As part of IRS Free File, taxpayers cannot be offered bank products that often carry fees, such as high-cost refund anticipation loans.

If you used IRS Free File last year, the company you used is required to send you an email welcoming you back to their official IRS Free File services.

The email must include a link to the companys IRS Free File site and explain how to file with it. If you choose this email link and qualify, you will not be charged for preparation and e-filing of a federal tax return.

H& r Block Best Overall

Heading our list for best overall tax service is H& R Block. H& R Block was started in 1955 by two brothers and has grown to over 12,000 locations worldwide. It has multiple services to choose from, the best tax software, and competitive prices that will take care of all your individual or business income tax preparation needs.

Also Check: Tax Burden By State 2022

Everything Goes Through Snail Mail

Note that the IRS doesn’t accept amended returns electronically. You’ll need to mail in a paper form to correct any errors.

“Taxpayers can’t file amended returns electronically and should mail the Form 1040X to the address listed in the instructions,” Kazenoff says.

The upside is that if the IRS catches the mistake first and you receive a letter or a notice about it, it may not be necessary to prepare an amended return, Kazenoff says. It’s possible that discrepancies can be worked out with the IRS, she says. If you end up needing to pay more, you can simply agree with the notice and pay in response to the notice rather than amending.

“You can go back three years to amend your taxes if you think you left something out of previous years’ tax returns,” Greene-Lewis says. Keep in mind that if you need to correct mistakes going back multiple years, you’ll have to use separate amended returns for each year. Each year should be done on a separate form and mailed in a separate envelope.

The Unholy Alliance Of Big Tax Prep And Anti

Tax Extension 2021 Turbo Tax

So why hasn’t return-free filing happened yet? The short answer is lobbying, and in particular lobbying by companies like Intuit. In 2013, ProPublica’s Liz Day wrote an incredible exposé on just how hard Intuit has lobbied to stop return-free filing from becoming a reality:

a bill to limit return-free filing was introduced by a pair of unlikely allies: Reps. Eric Cantor, R-Va., the conservative House majority leader, and Zoe Lofgren, D-Calif., a liberal stalwart whose district includes Silicon Valley.

Intuit’s political committee and employees have contributed to both. Cantor and his leadership PAC have received $26,100 in the past five years from the company’s PAC and employees. In the last two years, the Intuit PAC and employees donated $26,000 to Lofgren.

â¦In 2005, California launched a pilot program called ReadyReturn. As it fought against the program over the next five years, Intuit spent more than $3 million on overall lobbying and political campaigns in the state, according to Dennis J. Ventry Jr., a professor at UC Davis School of Law who specializes in tax policy and legal ethics.

Also Check: When Can I File My Taxes For 2021 In 2022

Who Qualifies For Turbotax Free Edition

If you make less than $34,000 per year, you can file your taxes for free with TurboTax Free File. This edition is required as part of the industrys deal with the IRS. You can access the TurboTax Free File program here.

TurboTax also offers a Free Edition for people who are filing very simple returns. Warning: The Free Edition puts many people on track to pay is not part of the IRS Free File program.

Remember: If you make under $66,000 per year, you are still eligible to prepare and file your taxes for free under the IRS Free File program.

If you make under $66,000 per year, to find another free tax preparation offer from IRS Free File.

How Fast Does Turbotax Refund

When you file with TurboTax, your tax refunds will arrive as soon as they would with any other tax software or service. Due to IRS security measures, this may take a little longer than it has in the past. The IRS estimates that most refunds will be sent within three weeks after your e-filed returns are accepted.

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Is It Worth Going To A Tax Preparer

Tax season can be quite a headache, and many people wonder if its worth going to a tax preparer for help. The answer is yes! It may cost more money to hire someone for professional tax assistance, but the time and effort saved in the long run can be well worth it.

A tax preparer typically has extensive knowledge of the tax code and tax deductions such as self-employed taxes, which they can use to maximize your return or minimize what you owe if you are facing an audit. Tax preparers also have access to the latest software updates that make tax filing quicker and easier, meaning less stress for you during this busy time.

So if youre feeling overwhelmed with managing your finances during tax season, a professional tax preparer could be just the thing to help make things simpler.

Why You Shouldnt Wait Until The Last Minute

What is a Tax Return? TurboTax Tax Tip Video

Now that you know how long it could take to file your taxes, arent you eager to get started? Still not convinced? Here are some reasons why you shouldnt wait until April to file:

1. Its a long process

In the U.S., preparing and filing taxes isnt a quick process. A lot more goes into filing taxes than just filling out the form and submitting it to the IRS. Unless youve kept on top of it all year, youll have a years worth of information and tax-related forms to organize. You may find youre missing information or documents you need in order to complete your tax return.

2. You could get your refund faster

The longer you wait to file, the later youll get your refund. If you file in February or March, the IRS may turn it around more quickly because it isnt as busy. Americans are procrastinators when it comes to taxes more than 20 million Americans wait until the last week to file. The IRS says it issues nine out of 10 refunds within 21 days of receiving a return. Dont wait until the last minute to file taxes like the procrastinators if you want to get your return in a timely fashion.

3. Dont risk being late

Procrastinating may work in other aspects of your life, but its not a good habit when it comes to filing taxes.

Lets say you plan on spending the final weekend before the filing deadline on your taxes. That weekend comes and you have a family emergency. Or maybe your basement floods from heavy springtime rain. Or you get tickets to a baseball game.

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About How Long Does It Take For Turbotax To Send Your Return

Your return is sent to the IRS the same day you complete and file it. It normally takes a week to ten days to get your refund, but it can take up to three weeks.

TurboTax gives you an estimated date for receiving your refund based on a 21 day average from your date of acceptance, but it can take longer.

Once your federal return has been accepted by the IRS, only the IRS has any control. TurboTax does not receive any updates from the IRS. Your ONLY source of information about your refund now is the IRS.

You need your filing status, your Social Security number and the exact amount of your federal refund to track your Federal refund:

Can I Track My Direct Deposit Tax Refund

Taxpayers can track their refund using Wheres My Refund? on or by downloading the IRS2Go mobile app. Wheres My Refund? is updated once daily, usually overnight, so theres no reason to check more than once per day or call the IRS to get information about a refund.

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If You Are Getting A Refund

This is one of the great little secrets about the federal tax law. If you have a refund coming from the IRSas about three out of four taxpayers do every yearthen there is no penalty for failing to file your tax return by the deadline, even if you don’t ask for an extension. However, this might not be the case for state taxes.

That’s not to say there aren’t very good reasons for filing on time. Even if you have a refund coming, consider the following:

  • You can’t get your money back until you file, so you should file as soon as you can to get your money as soon as possible.
  • The statute of limitations for the IRS to audit your return won’t start until you actually file your return. So, the sooner you file, the sooner the clock starts ticking.
  • Some tax elections must be made by the due date, even if you have a refund coming. This applies to a very tiny percentage of taxpayers.

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