Afraid of filing your taxes on your own? Don’t be! Did you know by doing it yourself has a lot of benefits including getting your refund a lot faster? I had the opportunity to interview Lisa Greene-Lewis, CPA for TurboTax who told me the benefits of filing taxes on our own and gave me great tips for work at home moms and bloggers!
Benefits of filing taxes on your own.
- Save hundreds of dollars! There are 60 million taxpayers in this country with a simple tax return, for example just one W2 from an employer and they’re spending hundreds of dollars to get their taxes done when they can do their federal taxes for FREE with tax software like TurboTax.
- Get your tax refund fast! A big advantage you can e-file with direct deposit, is the fastest way to get your tax refund. The IRS reported that 9 out of 10 people receive their refund within 21 days.
- Simple and Quick! IRS reported more people are using software to file their taxes because is simple, quick and you save money.
Who can file their taxes on their own?
Anyone can file their taxes on their own, TurboTax has several levels of software depending on your state tax situation, such as; Free Edition, Deluxe (Most popular), Premier and Home & Business, by clicking here you can choose the software you need.
Tax payers with simple tax returns (1040EZ/A) who have:
- (1) W-2
- Taxable income under $100,000
If you have itemized deductions (home mortgage interests, property taxes) you can use the Deluxe TurboTax program, but you will still be saving hundreds of dollars.
How does TurboTax software works?
It will ask you basic questions about your life such as; Did you have a baby, did you get married, simple questions you can answer and TurboTax will do all the work for you, YOU DON’T NEED TO KNOW ANY TAX LAWS.
How much money do tax payers save by using TurboTax instead of hiring a tax preparer?
Filing federal taxes may be free and tax payers with a simple tax returns can save around $100 by using TurboTax software.
What are the most common tax myths and the reason tax payers don’t file their taxes on their own?
- Fear that they can’t do it themselves
- Fear of being audited and a BIG one, but according to TurboTax, less than 1% of tax payers are actually audited.
Tips for working at home moms
- Make sure you have everything together in one folder such as; 1099 forms.
- Keep all receipts for all the things you do related to your business including; millage, lunch and dinner meetings.
- Since your work at home, you can deduct your home office. This year the IRS made it a lot more simple to deduct this so you get a flat deduction up to $1,500 based on the square footage you use.
- If you send your kids to child care or day care to be able to work, take advantage of the Dependent and Child Care Credit which could be worth up to $2,100 for 2 or more children, for 1 child can be worth up to $1,050.
- Child Tax Credit are for moms with children under 17 years old, that’s worth up to $1,000.
- Earn Income Tax Credit, depending on how many children (3 or more) you have and your income, you can get a credit up to $6,044.
Tips for bloggers
Bloggers can deduct:
- Your home office
- Cellphone and internet bill
- Electronics you use such as; computer, laptop, cameras, printer any devices related directly to your business
What if we make a mistake while filing our taxes using TurboTax software.
- While you’re going to the process of filing your taxes on TurboTax, they check for all the deductions and tax credits that you’re eligible for. They are constantly checking for any errors.
- If you make an error for example, entering the wrong social security number, you’ll get an IRS reject code that there’s a S.S mismatch and you can change it and re-submit.
If you’re using TurboTax online or TurboTax SnapTax, you can talk to a credential tax expert and get your questions answered in English and Spanish.
Do your taxes in 10 minutes with TurboTax SnapTax!
With TurboTax SnapTax you can take a photo of your W-2, answer the questions and e-file your federal taxes within 10 minutes! NEW this year, TurboTax SnapTax, now has the ability to use it in Spanish as well. You can download the App on your Iphone or Android, by visiting SnapTax.com and it’s FREE! TurboTax Snap is to file simple Federal taxes.
Excited about filing your taxes on your own? I’ll help!
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