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Time is running out for the 2023 tax season – your federal income tax returns are due by April 18. If you haven’t started collecting taxes yet, a program like TurboTax can help you find additional deductions and calculate your taxes for you. TurboTax can even automatically fill in your address and employer information from last year, making it much easier and faster.
Don’t put off starting your taxes any longer: You can get your tax refund in less than three weeks if you file today.
The best products in this article:
Free version of TurboTax (For simple tax returns only. Not all taxpayers qualify.)
In 2020, more than 195 million tax returns and other tax forms were filed electronically; 14 million of those tax returns were filed with the version TurboTax. The goal of tax software is to simplify the process of filing a tax return and find clients great tax breaks that they otherwise would not have found on their own. If you’re one of the many Americans who look to TurboTax as a tool to help you file your taxes correctly and on time, there are a few things you need to know filing taxes through software.
When are taxes due in 2023?
Tuesday, April 18, 2023, is the deadline to file a tax return for most Americans.
January 11 The IRS announced the victims of the storm in California now has until May 15, 2023 to file various federal tax returns for individuals and businesses and make tax payments. The IRS offers an extension to people in areas designated by the Federal Emergency Management Agency (FEMA). The areas included cover most of the state. Think you might qualify for an extension? Click here to see the full list.
Need more time to submit? According to the IRS, you must request an extension of time to file. To receive an automatic 6-month extension of the return filing deadline, you must file Form 4868. Extension of time for submission of documents is not an extension of time for payment. You may be charged a late payment penalty for taxes not paid by the original return date.
According to the IRS, most refunds are processed within six to eight weeks if you file on paper, or as little as three weeks if you choose direct deposit.
Which version of TurboTax is right for you?
There are four main types of TurboTax to choose from.
Your choice should fit your lifestyle. For example, if you are a taxpayer with cryptocurrency investments, there is a clear version of TurboTax for you. Are you self-employed? Then don’t choose the option for taxpayers who document all of their income on a W-2.
Free version of TurboTax
This is the free version of TurboTax it’s a great option for taxpayers whose income consists primarily of W-2s and bank savings. Tax software includes free filing of your simple federal and state tax returns. According to TurboTax, the free edition covers W-2 income, the Earned Income Tax Credit (EIC), and child tax credits, as well as the standard deduction, student loan interest deduction, and limited interest and dividend reporting (1099-INT, 1099- DIV).
It should be noted that TurboTax Free Edition cannot process 1099-G unemployment income or itemized deductions.
The Federal Trade Commission (FTC) currently sue TurboTax parent company Intuit claims the software company is misleading people with its promotions about free tax filing. (Intuit, for its part, says she adheres to IRS rules and called the allegations “simply not credible”.)
Users get help anytime from the online community of TurboTax TurboTax professionals. Worried something will go wrong? The free version of TurboTax includes audit guidance backed by the TurboTax Audit Support Guarantee.
The deadline to file through TurboTax Free Edition is March 31, 2023. For simple tax returns only, not all taxpayers are eligible.
TurboTax Deluxe
TurboTax Deluxe includes all the features of the free edition of TurboTax, plus a few extra features. This is a good option for homeowners. This version of TurboTax offers homeowners step-by-step instructions on how to turn their home investment into serious tax benefits. (If you’re hoping to deduct the interest you paid on your mortgage, you should choose TurboTax Deluxe.)
TurboTax Deluxe includes a search of over 350 tax deductions and credits to find all applicable tax credits. And if the unexpected form arrives late, this software allows you to make changes to your 2021 tax return online for three years after it’s filed and accepted by the IRS.
TurboTax Deluxe includes one-on-one support from live TurboTax product experts.
TurboTax Deluxe can be upgraded to TurboTax Live Deluxe. Upgrades give customers access to unlimited tax advice and an expert final review.
TurboTax Premier
TurboTax Premier has all the features of TurboTax Deluxe, but is also great for taxpayers with investment income such as stocks, cryptocurrency, bonds, ESPPs, robo-investing, and rental income. If you’ve bought and sold on Robinhood or Coinbase — especially sales that are a taxable event — TurboTax Premier is probably the version for you. This makes it easy to report on these transactions, even if there are many – the software can import thousands of transactions directly from brokers.
Likewise, if you own a home and are renting out a spare room to a friend or family member, this version will help you report your income and find common deductions that can save you hundreds or even thousands of dollars.
Like all TurboTax software, Premier strives to provide clients with the greatest tax benefits. TurboTax Premier searches over 450 tax deductions and credits to find applicable tax credits.
TurboTax Premier can be upgraded to TurboTax Live Premier. Upgrades give customers access to unlimited tax advice and an expert final review.
TurboTax Self Employed
TurboTax Self Employed includes all the features of other versions of TurboTax, plus some important extras for self-employed taxpayers. If you are a freelancer or Door panel delivery side hustle, for example, is the version of TurboTax for you.
Perfect for 1099-NEC income, this version of TurboTax will help you fill out all the appropriate self-employment tax forms and let you know when the IRS requires a Schedule SE or Self-Employment Tax.
This version of the tax software checks your transactions for deductions by industry including real estate, travel promotions, shipping management, online retail, and personal or professional services. If your company has employees, this tax software allows you to prepare and print unlimited W-2 and 1099 forms.
TurboTax Self-Employed can be upgraded to TurboTax Live Self Employed. Upgrades give customers access to unlimited tax advice and an expert final review.
TurboTax Live Self-Employed, $209
Related content from CBS Essentials:
https://www.cbsnews.com/essentials/decoding-turbotax-which-turbotax-version-is-best-for-you-2023-03-09/
