how to use turbo tax
November 6, 2022 9:11 AM Subscribe
For 40 years I have been self-employed and done my own taxes, on paper. Yep, I am old. I have never had any problem. And never been off more than $200 or so.
But I am considering using Turbo Tax, or something similar, next year. I wanted to understand a few things first. If you enter numbers like a deduction or income, (all my 1099s and receipts etc ) that for some reason the software doesn't agree with, does it "lock up" proceeding anyway? My income/deductions may not fit into a clean category, at least according to what the program might say. Again, this has never been a problem for decades.
Also, it is possible to print all the forms once completed?
But I am considering using Turbo Tax, or something similar, next year. I wanted to understand a few things first. If you enter numbers like a deduction or income, (all my 1099s and receipts etc ) that for some reason the software doesn't agree with, does it "lock up" proceeding anyway? My income/deductions may not fit into a clean category, at least according to what the program might say. Again, this has never been a problem for decades.
Also, it is possible to print all the forms once completed?
Mine is always pretty simple, so I can't speak for super-complicated ones, but in my experience it doesn't care what numbers you put in. It might flag something as "are you sure", but really all it does is step you through the process entering numbers and then doing all the math for you. (so you can't forget a part, and you can't fat-finger the calculator) You can print the forms at the end.
The super-nice thing for me is it remembers all the information from year to year so you just confirm it hasn't changed instead of re-entering everything (company addresses, tax id numbers, your address, etc.)
posted by ctmf at 9:27 AM on November 6, 2022
The super-nice thing for me is it remembers all the information from year to year so you just confirm it hasn't changed instead of re-entering everything (company addresses, tax id numbers, your address, etc.)
posted by ctmf at 9:27 AM on November 6, 2022
I switched to H&R Block Tax Cut, from TT years ago. I have some complications, but not ones relating to being self-employed, so YMMV.
But the software doesn't really "disagree" with what you enter. You may get to a place where the tax burden looks way off, and you need to figure out why, (mine mostly related to having children on the account, and needing to decide if they should file on their own and such.
But when you get to the end, it scans through your things and throws up warnings and errors, so you can go back and figure out why. And it will print out all of your forms.
posted by Windopaene at 9:27 AM on November 6, 2022
But the software doesn't really "disagree" with what you enter. You may get to a place where the tax burden looks way off, and you need to figure out why, (mine mostly related to having children on the account, and needing to decide if they should file on their own and such.
But when you get to the end, it scans through your things and throws up warnings and errors, so you can go back and figure out why. And it will print out all of your forms.
posted by Windopaene at 9:27 AM on November 6, 2022
It is possible to print everything. Or save it as a PDF.
I have now used TurboTax for over 20 years and have never had it "lock up" for any reason. I don't think it is programmed to evaluate the validity of a deduction or income item you might enter. I can't deduct charitable donations anymore, but before that changed, rather than entering them individually as the program asks, I just entered one line, called it "Charitable donations in spreadsheet" (referring to a spreadsheet I kept myself). It never questioned that (and that language does not appear on returns it prepares). I've also never been audited, for what that's worth, even though I included self-employment income, home office deduction, etc. And TurboTax is quite thorough about asking about "special situations" that are uncommon, but should not be missed if they apply to you.
posted by beagle at 9:32 AM on November 6, 2022
I have now used TurboTax for over 20 years and have never had it "lock up" for any reason. I don't think it is programmed to evaluate the validity of a deduction or income item you might enter. I can't deduct charitable donations anymore, but before that changed, rather than entering them individually as the program asks, I just entered one line, called it "Charitable donations in spreadsheet" (referring to a spreadsheet I kept myself). It never questioned that (and that language does not appear on returns it prepares). I've also never been audited, for what that's worth, even though I included self-employment income, home office deduction, etc. And TurboTax is quite thorough about asking about "special situations" that are uncommon, but should not be missed if they apply to you.
posted by beagle at 9:32 AM on November 6, 2022
My one beef is how aggressively it tries to up-sell you on premium services like audit protection, credit monitoring, etc. I wouldn't mind being asked once, but it's relentless. It does do a good job though and there is always a "no thanks, I'll stick with the cheap one" option if you look hard enough.
posted by ctmf at 9:32 AM on November 6, 2022 [1 favorite]
posted by ctmf at 9:32 AM on November 6, 2022 [1 favorite]
Response by poster: Thanks for the answers. Don't mean to sit. But does buying the program rope you into efiling? I ask because I have a problem with having to pay to efile in order to pay taxes. So I file paper.
posted by jtexman1 at 9:34 AM on November 6, 2022
posted by jtexman1 at 9:34 AM on November 6, 2022
I switched from TurboTax to TaxCut also. I never e-filed, I think, except possibly for one year when I was almost late.
posted by amtho at 9:37 AM on November 6, 2022
posted by amtho at 9:37 AM on November 6, 2022
I haven't used TurboTax for years, but FreeTaxUSA can handle my complex taxes (including self-employment as well as W2 income, with a host of deductions), and lets me e-file for free. I always save a PDF for my own records.
posted by basalganglia at 9:41 AM on November 6, 2022 [3 favorites]
posted by basalganglia at 9:41 AM on November 6, 2022 [3 favorites]
If you do something TurboTax doesn't like, they're all hey whoa bud please confirm this and then try to upsell you audit protection but let you do it anyway. You can print your completed forms and paper file.
posted by phunniemee at 9:52 AM on November 6, 2022
posted by phunniemee at 9:52 AM on November 6, 2022
I’ve used TurboTax and freetaxUSA, they both handled semi complex situations pretty well, but the latter was much cheaper, especially if you have to file in multiple states.
posted by skewed at 9:53 AM on November 6, 2022
posted by skewed at 9:53 AM on November 6, 2022
But does buying the program rope you into efiling? I ask because I have a problem with having to pay to efile in order to pay taxes. So I file paper.
You can print out your materials and mail them in, if that's what you want to do. But I'm confused about this comment in general, because there is no cost to efile your taxes...
posted by NotMyselfRightNow at 10:33 AM on November 6, 2022 [2 favorites]
You can print out your materials and mail them in, if that's what you want to do. But I'm confused about this comment in general, because there is no cost to efile your taxes...
posted by NotMyselfRightNow at 10:33 AM on November 6, 2022 [2 favorites]
I've used Turbo Tax for many years, with no problems. During most of those years, I owned a subchapter S corporation but after selling the company I had 1099s and the like for my income. TT issues no judgments whatsoever, even if you enter contributions that are specifically not tax-deductible (don't ask me how I know that) although at the very end it estimates how likely you are to be audited. You can either let TT guide you through inputting your information, or you can use a forms-based approach if you, e.g., want to hew closely to prior years' returns and how you categorized certain expenses.
You can print out a copy or save a pdf (or both, of course), and e-filing is free. The version I purchase includes a free state return, which does cost money to e-file. But because I live in a state (IL) which allows you to do your taxes online, I let TT do all the computations then enter the results into the online tax form. That way it costs me nothing.
posted by DrGail at 10:48 AM on November 6, 2022
You can print out a copy or save a pdf (or both, of course), and e-filing is free. The version I purchase includes a free state return, which does cost money to e-file. But because I live in a state (IL) which allows you to do your taxes online, I let TT do all the computations then enter the results into the online tax form. That way it costs me nothing.
posted by DrGail at 10:48 AM on November 6, 2022
> I ask because I have a problem with having to pay to efile in order to pay taxes. So I file paper.
Have you looked into the free e-filing options from the IRS website? You can get guided programs (Free File, a variety of providers available) if you're under a certain AGI; unguided (Free Fillable Forms) for all income levels.
The Free Fillable Forms might be an option for you, since you already know how to do the taxes. It's like a digital copy of the official IRS forms you fill in online and submit.
By analogy, Free Fillable Forms is like using a typewriter and you're just typing up something you know how to write, and the guided programs are like Word with tools like Clippy and spellcheck and so on telling you how to format or spell something (convenient sometimes but inflexible sometimes).
> My income/deductions may not fit into a clean category, at least according to what the program might say.
This is why in past years I stuck with Free Fillable Forms rather than a program that figures it out for you. If you're the type that knows which line a certain item should go on and find yourself yelling at the program "No! How do I move that to this line?! Forget this, just get me a pen..." then go with the Free Fillable Forms.
> does it "lock up" proceeding anyway?
In my experience, for the programs where you open an account online, they don't charge you until you submit the filing. I know some people try out the same tax return on multiple software/sites to test them out and then choose one to actually submit. The return isn't considered filed until the IRS receives/accepts it.
Or do you mean "lock up" as in "Does the program not let you edit something once typed in"? The interfaces I've used (tried them just to get a feel) have allowed you to make changes as you go or at the end when you check the whole document and can download a copy.
posted by Sockin'inthefreeworld at 10:51 AM on November 6, 2022 [2 favorites]
Have you looked into the free e-filing options from the IRS website? You can get guided programs (Free File, a variety of providers available) if you're under a certain AGI; unguided (Free Fillable Forms) for all income levels.
The Free Fillable Forms might be an option for you, since you already know how to do the taxes. It's like a digital copy of the official IRS forms you fill in online and submit.
By analogy, Free Fillable Forms is like using a typewriter and you're just typing up something you know how to write, and the guided programs are like Word with tools like Clippy and spellcheck and so on telling you how to format or spell something (convenient sometimes but inflexible sometimes).
> My income/deductions may not fit into a clean category, at least according to what the program might say.
This is why in past years I stuck with Free Fillable Forms rather than a program that figures it out for you. If you're the type that knows which line a certain item should go on and find yourself yelling at the program "No! How do I move that to this line?! Forget this, just get me a pen..." then go with the Free Fillable Forms.
> does it "lock up" proceeding anyway?
In my experience, for the programs where you open an account online, they don't charge you until you submit the filing. I know some people try out the same tax return on multiple software/sites to test them out and then choose one to actually submit. The return isn't considered filed until the IRS receives/accepts it.
Or do you mean "lock up" as in "Does the program not let you edit something once typed in"? The interfaces I've used (tried them just to get a feel) have allowed you to make changes as you go or at the end when you check the whole document and can download a copy.
posted by Sockin'inthefreeworld at 10:51 AM on November 6, 2022 [2 favorites]
I ask because I have a problem with having to pay to efile in order to pay taxes.
E-file is free for US federal returns, afaik no matter who you use. Filing for state taxes may cost, depending on your state. Your state may well have its own free e-file system (my state Ohio does), and since (very generally) state returns are simpler and use your federal results for much of the info, it shouldn't be too difficult.
If you're comfortable doing your own taxes on paper, I suggest you look into the IRS' own Free File Fillable Forms, which are basically online pdfs just like the paper forms, where you enter your data & numbers and it does some of the math for you, and then you file. You can save and print these PDFs after they're filled out. It's totally free. It might be a little annoying if you're totally self-employed, but I've used it without problems for years, with a variety of combinations of full time, part time, and "side hustle" self-employed income.
(On preview, jinx Sockin'inthefreeworld!)
posted by soundguy99 at 10:56 AM on November 6, 2022 [2 favorites]
E-file is free for US federal returns, afaik no matter who you use. Filing for state taxes may cost, depending on your state. Your state may well have its own free e-file system (my state Ohio does), and since (very generally) state returns are simpler and use your federal results for much of the info, it shouldn't be too difficult.
If you're comfortable doing your own taxes on paper, I suggest you look into the IRS' own Free File Fillable Forms, which are basically online pdfs just like the paper forms, where you enter your data & numbers and it does some of the math for you, and then you file. You can save and print these PDFs after they're filled out. It's totally free. It might be a little annoying if you're totally self-employed, but I've used it without problems for years, with a variety of combinations of full time, part time, and "side hustle" self-employed income.
(On preview, jinx Sockin'inthefreeworld!)
posted by soundguy99 at 10:56 AM on November 6, 2022 [2 favorites]
Another way to fill out pdfs is pdfescape. Collect and save your forms (federal and state). Fill out with pdf excape, print, and mail in. I've done this for years. If you know how to do your taxes, low cost (it probably takes more time) and no efile.
posted by H21 at 11:10 AM on November 6, 2022
posted by H21 at 11:10 AM on November 6, 2022
I used Turbo tax for a few years- I have somewhat complicated taxes as I have two small businesses, and rental income, and one year my boyfriend convinced me to switch to Free Tax USA, and I have never turned back. I only pay for my state taxes, and I have never had any issues. It is easy and has had none of the sketchy business practices that Turbo Tax has had.
posted by momochan at 4:21 PM on November 6, 2022
posted by momochan at 4:21 PM on November 6, 2022
I've used H&R Block for the last decade. I eFile the Federal, but I print out and mail the state. That's basically being miserly when faced with the choice between paying $20 to eFile or mailing 3 sheets of paper.
If you have a brokerage account with a major bank or brokerage, you may be able to download all the associated 1099s and buy/sell information. This is a huge time-saver and somewhat of a guarantee of accuracy. Which is a very good thing since the software rounds all entries to the nearest dollar and the brokerage statements keep all the pennies making error checking neigh on impossible.
I used one or another for a decade or so when I was self employed. I didn't have any great trouble with it, but the were some annoyances. The programs reduce the user require to data entry, and don't display the internal calculations explicitly, so if you are knowledgeable enough to wonder if e. g. the program took a particular credit, it can be tricky to work it out. Also there can be problems with sequence, like getting all your income data entered before figuring an Ira contribution.
The program's error checking functions has both uncovered mistakes and insisted on some seemingly unnecessary stuff.
posted by SemiSalt at 4:50 AM on November 7, 2022
If you have a brokerage account with a major bank or brokerage, you may be able to download all the associated 1099s and buy/sell information. This is a huge time-saver and somewhat of a guarantee of accuracy. Which is a very good thing since the software rounds all entries to the nearest dollar and the brokerage statements keep all the pennies making error checking neigh on impossible.
I used one or another for a decade or so when I was self employed. I didn't have any great trouble with it, but the were some annoyances. The programs reduce the user require to data entry, and don't display the internal calculations explicitly, so if you are knowledgeable enough to wonder if e. g. the program took a particular credit, it can be tricky to work it out. Also there can be problems with sequence, like getting all your income data entered before figuring an Ira contribution.
The program's error checking functions has both uncovered mistakes and insisted on some seemingly unnecessary stuff.
posted by SemiSalt at 4:50 AM on November 7, 2022
If you've been doing your taxes yourself, you might find TurboTax a little or a lot dumbed down, just the way they word the questions and inputs. I prefer TaxAct, since it is slightly less oversimplified. But the interface is a little more convoluted.
Try one or both and see if you like them (you don't have to pay until you're ready to print or e-file), but I can tell you from experience that you're going to be annoyed by having to figure out their interface and their interpretation of your tax situation. The input doesn't bear any relation to the actual forms and schedules, so it takes a bit of an adjustment in perspective to do the input. That said, it saves me an incredible amount of time and I would strongly recommend trying TT or TA or something similar. TA handles my sole proprietership attorney business well, and seems to handle my mom's rental house pretty well also.
Oh, and you should consider e-filing because you receive a confirmation almost immediately that the return was received - that alone is worth it. And no trips to the post office. Just save a PDF (or print your PDF) each year.
By the way, these apps have an online version and a download version. One or the other might be better for you.
posted by bluesky78987 at 8:24 AM on November 7, 2022
Try one or both and see if you like them (you don't have to pay until you're ready to print or e-file), but I can tell you from experience that you're going to be annoyed by having to figure out their interface and their interpretation of your tax situation. The input doesn't bear any relation to the actual forms and schedules, so it takes a bit of an adjustment in perspective to do the input. That said, it saves me an incredible amount of time and I would strongly recommend trying TT or TA or something similar. TA handles my sole proprietership attorney business well, and seems to handle my mom's rental house pretty well also.
Oh, and you should consider e-filing because you receive a confirmation almost immediately that the return was received - that alone is worth it. And no trips to the post office. Just save a PDF (or print your PDF) each year.
By the way, these apps have an online version and a download version. One or the other might be better for you.
posted by bluesky78987 at 8:24 AM on November 7, 2022
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The software takes what you enter I've never had it refuse info.
I've had to go back and modify some returns when a financial institution updates the paperwork they sent but that is easy as well.
My one beef is that early on, I didn't realize I needed to save my forms as .pdfs in order to access them later without having the software for that year. I lost access to a number of years of taxes--and had to order old discs to retrieve them because I couldn't get the old versions online (was probably a me problem, not a TT problem). As long as you save everything as .pdfs when you are done, you will be good.
posted by agatha_magatha at 9:24 AM on November 6, 2022 [1 favorite]