Why Is Turbotax Charging Me
If you make less than $36,000 a year and TurboTax is telling you it costs money to file, you are probably using the wrong version of TurboTax. Dont worry, there is a way to access the truly free version.
As ProPublica reported last year, TurboTax purposefully hid its Free File product and directed taxpayers to a version where many had to pay, which is called the TurboTax Free Edition. If you clicked on this FREE Guaranteed option, you could input a lot of your information, only to be told toward the end of the process that you need to pay.
You can access TurboTaxs Free File version here. This version is offered through the Free File agreement.
TurboTaxs misleading advertising and website design directed users to more expensive versions of the software, even if they qualified to file for free. After our stories published, some people demanded and got refunds. Intuit, the maker of TurboTax, faces several investigations and lawsuits because of this. The company has denied wrongdoing.
Following ProPublicas reporting, the IRS announced an update to its agreement with the tax-preparation companies. Among other things, the update bars the companies from hiding their Free File offerings from Google search results. It also makes it so each company has to name their Free File service the same way using the format: IRS Free File Program delivered by .
Read Also: How Long Should We Keep Tax Records
How Long Will It Take The Irs To Send My Tax Refund
The IRS usually issues tax refunds within three weeks, but some taxpayers could have to wait a while longer to receive their payments. If there are any errors, or if you filed a claim for an earned income tax credit or the child tax credit, the wait could be lengthy.
When an issue delays your return, its resolution depends on how quickly and accurately you respond, and the ability of IRS staff trained and working under social distancing requirements to complete the processing of your return,according to the IRS website.
The date you receive your tax refund also depends on the method you used to file your return. If you submitted a tax return by mail, the IRS says it could take six to eight weeks for your tax refund to arrive once its been processed.
If your tax refund goes into your bank account via direct deposit, it could take an additional five days for your bank to post the money to your account. This means if it takes the IRS the full 21 days to issue your check and your bank five days to post it, you could be waiting a total of 26 days to get your tax refund.
State Income Tax Vs Federal Income Tax Example
Consider a single taxpayer who lives in New Hampshire and reports taxable earned income of $75,000 a year plus interest income of $3,000 on their federal tax return.
We’ll start with the state income taxes. New Hampshire has a $2,400 tax exemption for the interest and dividends tax, so tax is due only on the remaining $600 of interest and dividends income.
This means the taxpayer would pay just $30 in state taxes because New Hampshire taxes interest and dividend income onlyat the rate of 5%. The taxpayer’s effective state tax rate on their total income of $78,000 would be 0.038%.
If this same person lived in Utah, all of their taxable incomeboth earned and unearnedwould be subject to that state’s 4.95% flat tax rate. In that case, their state tax bill would be $3,861 .
In terms of federal taxes, under the progressive system, this taxpayer would pay $995 on the first $9,950 of their income that falls into the 10% tax bracket. They would pay 12% on their income from $9,950 to $40,526 , and 22% on the amount greater than $40,526 for a total federal tax bill of $12,248.40. Their effective federal tax rate would be 16.3%.
Recommended Reading: How To Check State Tax Refund
Failure To File Penalty
This applies when you dont file by the date that your tax return is due. If youve applied for an extension, it kicks in as soon as your extension expires. Keep in mind that you still need to pay at least 90 percent of what you owe in taxes for the year, even if you do get a filing extension.
While a filing extension allows you to file past the deadline, it doesnt actually extend your payment deadline. Failure to file is five percent of your unpaid tax bill for each month that your return is late, and can, again, reach up to 25 percent.
Can I File Federal And State Separately
Yes. You can file them separately. Although state returns can be e-filed with your federal return , its no longer possible to e-file state returns before the federal.
They are taking this measure to add an extra layer of security to all e-filed state returns.
This new requirement also means you wont be able to e-file your state if your federal return was, or will be, paper-filed.
You can file federal now and skip state filing, but your e-filed federal return will need to be accepted before you can e-file your state
Here are two ways to skip your state in TurboTax Online:
Method 1 doesnt require up-front payment for your state, but youll have to re-enter your state information. Method 2 saves the work you did on your state return but requires up-front payment.
Don’t Miss: How To Check My Tax Refund Status
How Can You File Multiple State Tax Returns
Filing multiple state tax returns is actually pretty easy if you use tax software. The first step is completing your federal income tax return as normal.
When you get to the state tax return portion, the software will ask you if you moved during the year, to which state, and when. It will then ask you any questions specific to each state. Finally, it will automatically apply the partial year resident rules to figure out how much tax you owe each state.
Also Check: Tax Preparation License
All You Need To Know Is Yourself
Answer simple questions about your life and TurboTax Free Edition will take care of the rest.
-
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.
Read Also: Where Do You Send Your Tax Return
Can Irs Debt Be Discharged In Chapter 13
Filing for Chapter 13 bankruptcy does not immediately discharge tax debt. First, you must determine if your income tax debt is a priority or nonpriority debt.
Your tax debt is considered nonpriority when it meets the 5 qualifications listed above. Otherwise, it is considered priority and must be paid off over the duration of the 3-5 year repayment period.
You will pay a percentage of your nonpriority tax debt over the course of the repayment period. When you complete the repayment period, the remainder of your nonpriority tax debt is discharged.
You May Like: How Many Bankruptcies Has Donald Trump Filed
What To Know If You Missed The Deadline To Claim Your Money
If you missed any of the deadlines above to claim your missing child tax credit payments or stimulus money, don’t worry. You can still claim that money when you file your taxes in 2023 — you just won’t receive it this year.
The final cutoff day for claiming the money will be on Tax Day in 2025, but we recommend filing as soon as possible.
Also Check: How Do I Amend My Taxes On Turbotax
How To File Your State Tax Return For Free
As you have probably noticed, many places offer a free filing of a Federal return but dont offer free state filing.
But there are a few ways to get your state income tax returns done for free and in this article, I am showing you free file programs that I found
TurboTax has rolled out their TurboTax FREE file program where you can get your Federal, State, and filing all done free.
They still offer paid options for more complicated tax returns, but if you dont have too much craziness going on with your taxes you will probably be eligible for their free program.
TurboTax has a long history of offering free Federal returns but people were always asking Is TurboTax free for state filing? and now the answer is a yes!
I personally love how simple and intuitive TurboTax is to use. You just answer their simple questions and they tax care of the rest.
You can read more about the details of who is eligible on their website and get started on the TurboTax Website.
Dont Think Of Your Refund As Found Money
This isnt something you want to use to, like, splurge on a big vacation with, said Buhrmann.Consider building up that emergency fund or paying down consumer debt, setting aside for retirement or your kids college tuition. If you need a reminder about what a crisis can look like, think back to March 2020.
For more on filing a 2021 tax return, learn how to set up an account on the IRS website and how to file on your phone. And heres if you have to declare Venmo payments from friends.
Read Also: How To File Past Years Taxes
General Information About Individual Income Tax Electronic Filing
Filing electronically is a fast growing alternative to mailing paper returns. The Missouri Department of Revenue received more than 2.8 million electronically filed returns in 2021. Convenience, accuracy, and the ability to direct deposit your refund are just a few of the reasons why electronic filing is becoming one of the Department’s most popular filing methods.
Several Tax Deadlines Apply To Both Small Business Owners And Self
What you’ll learn:
Most individuals and small business owners know that there are certain tax-related filing deadlines every year. Many people, however, do not know what meeting those deadlines entails. The following answers to common tax questions provide an overview of the important dates and compliance deadlines for the 2022 tax year and key filing and reporting dates for the 2023 calendar year.
Recommended Reading: When Will Irs Refund Unemployment Taxes
Filing Requirements For Dependents
Taxpayers who are claimed as dependents are subject to different rules for filing taxes.
Dependents include children under the age of 19 , or who are permanently disabled along with qualifying relatives . When their earned income is more than their standard deduction, taxes have to be filed. A dependents income is unearned when it comes from sources such as dividends and interest.
Single, under the age of 65 and not older or blind, you must file your taxes if:
- Unearned income was more than $1,050
- Earned income was more than $12,000
- Gross income was more than the larger of $1,050 or on earned income up to $11,650 plus $350
If Single, aged 65 or older or blind, you must file a return if:
- Unearned income was more than $2,650 or $4,250 if youre both 65 or older and blind
- Earned income was more than $13,600 or $15,200 if youre both 65 or older and blind
If youre married, under the age of 65 and not older or blind, you must file a return if:
- Unearned income was more than $1,050
- Earned income was more than $12,000
- Your gross income was at least $5 and your spouse itemizes deductions
- Your gross income was more than the larger of $1,050 or your earned income was $11,650 plus $350
Debts That Are Not Dischargeable
The biggest advantage of filing a Chapter 7 bankruptcy is the possibility of having some or all of your debts discharged. When a debt is discharged, it is cancelled by the Court and you do not have to repay it. However, not all debts are dischargeable. In general, the following kinds of debts cannot be discharged:
Also Check: Can Home Improvement Be Tax Deductible
Extension To File Your Tax Return
If you cant file your federal income tax return by the due date, you may be able to get a six-month extension from the Internal Revenue Service . This does not grant you more time to pay your taxes. To avoid possible penalties, estimate and pay the taxes you owe by the tax deadline of April 19, 2022, if you live in Maine or Massachusetts or April 18, 2022, for the rest of the country.
No Matter How You File Block Has Your Back
You May Like: How To Do Federal Tax Return
What About My Tax Refund
This question comes up quite a bit. If you anticipate a large refund, talk about this issue with your attorney. It may be a good idea to delay filing until after you receive your tax year refund for the past year. Technically, when consumers file for bankruptcy, all their non-exempt property goes to the trustee. That includes tax refunds. Since the policies vary depending on where you live, you may be able to use the wildcard exemption to exempt the tax return.
Lets Summarize
Owing past-due income taxes can be stressful. These bills are often so high that, even if you fall behind a little, you could end up owing a lot of money. Fortunately, if your debts meet certain requirements, filing Chapter 7 bankruptcy can erase past-due income tax debt in one fell swoop.
Recommended Reading: Can Restitution Be Included In Bankruptcy
Use Tax Software To Handle Your Tax Matters
If youre feeling anxious about filing your tax return, help is available.
Some tax preparation companies also offer additional paid resources like live, online help from tax professionals, or in-person tax support if you need extra assistance.
Check out our best tax software list to find the right tax software for your needs.
Also Check: Do You Pay Taxes On Social Security Disability
Recommended Reading: What Is 1040 Sr Tax Form
When Was The Deadline For Claiming Stimulus Or Child Tax Credit Money
The deadline to claim missing stimulus or child tax credit money was 11:59 p.m. ET on Thursday, Nov. 17, for those using the IRS Free File tool. The Free File tool is for those who are not typically required to file taxes due to lower income.
If you filed a tax extension earlier this year or haven’t filed yet, your deadline to submit your tax return if you’re required to file was . That was also the last day to file Form 1040 to avoid a late-filing penalty.
If you were affected by one of the recent natural disasters, such as Hurricane Ian, you have until , to file. But if you live in an area covered by Federal Emergency Management Agency disaster declarations, like Kentucky or Missouri, Tuesday, was the last day to file.
You can still get your stimulus and child tax credit money — just not this year.
