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Turbo Tax 2010

With tax time quickly approaching, how to get your taxes done right, fast, and inexpensively is at top of mind for a lot of people.  Tubo Tax is one of the most trusted do it yourself tax softwares available.  This great software allows you to get tax help and advice when you are unsure of what you are doing.  It basically provides a blueprint and step by step guide of what you need to do to complet both your federal and state tax returns.

Here is a great short article on the Turbo Tax software for tax year 2009 – which is frequently referred to as Turbo Tax 2010.

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TurboTax Online 2009, 2010 – Business & Home Tax Software

By Frank W Ellis

An online tax software program such as Turbotax Online 2008, 2009, does more than just prepare and file your taxes. It offers advanced tools to help you pay the least amount of tax possible. It also provides an extremely accurate tax return to file with the Internal Revenue Service (IRS). These important tools are something you should be aware of before you begin your taxes.

Let’s take a look at a few of these tax tools

  • Tax Return Calculator – Use this handy tool to figure out how much of a tax refund you can expect to get back from the Government. Just enter your information as prompted, and the tax return calculator will quickly complete your tax refund estimate.
  • Home Mortgage Calculator - All you have to do is enter the amount of interest you paid for the year and the mortgage calculator will show you your tax savings. Be sure to add in any points you might have paid.
  • The Deduction Maximizer – Tax preparation software such as Turbotax 2008 Deluxe, has a built in tax deduction maximizer. As with the tax return calculator, you just enter your information and the tax deduction maximizer will determine what deductions you should take.
  • Tax Articles and Tips – Common, and not so common tax questions are answered in the tips and articles section of the tax program. If you want to learn about tax deductions, self-employment, child tax credit, medical expenses, mortgage interest, and a multitude of other tax subjects it’s there to help you.

Let’s face it not many people enjoy doing their taxes. However, tax software designers are working to make tax preparation and filing software, as hassle-free and money-saving as possible. Having a set of useful tax tools on hand can make the job of (doing your taxes) a little easier and oftentimes, profitable!

To check out these tax tools, go to Turbo Tax Online where you can either begin your tax filing or take a free test drive. You’ll find lot’s of up-to-date tax information and tools, and you’ll be able to get your taxes filed before it’s to late.

Article Source: http://EzineArticles.com/?expert=Frank_W_Ellis
http://EzineArticles.com/?TurboTax-Online-2009,-2010—Business-and-Home-Tax-Software&id=500344

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Again, I want to point out that in addition to these great tools, you can also get tax help online which is really one of the most valuable things that Turbo Tax has to offer.  Don’t delay getting your copy because April 15th is just around the corner.  The sooner you start your taxes, the less you will have to worry.

Related Posts:

Should I Convert to a Roth IRA?

Since the creation of the Roth IRA, there have been income limits that have prevented higher earning households from opening Roth IRAs or converting traditional IRAs to Roth IRAs. On January 1, 2010, income limits will be eliminated. This will allow any interested investor to convert traditional IRAs to Roth IRAs.

Complacency with monitoring our accounts’ diversification can lead to unnecessary risk. It is best not to be complacent about considering the current IRA conversion opportunity. It can be beneficial for many investors, and now may be a great time to consider whether it is right for you.

What is a Roth IRA?

Roth IRAs allow investors to put money aside for retirement. Money added to a Roth IRA does not get an immediate income tax deduction. There is no benefit upfront. The benefit comes later.

Investors are able to avoid income taxes on all gains earned on that money. Any cash flow from these accounts during retirement will be completely free of state and federal income taxes.

Converting traditional IRAs to Roth IRAs

Investors can convert some or all of the funds in their traditional IRAs to Roth IRAs. In the year of conversion, the investor will be required to pay income taxes on the amount converted. However, the benefit is that the funds will never be taxed again, regardless of the gain earned.

Benefits of converting

With our retirement account values down after the market fall of the last two years, now may be a good time to convert a traditional IRA to a Roth IRA. Not only will the income tax liability be lower, but we can also take advantage of tax free gains as the market recovers.

Conversion may be good if we anticipate that our tax rates will be higher in retirement. While our highest marginal tax rate is 35% now, it has been higher in the past. Converting now enables us to pay at lower marginal tax rates than what may be in place when we choose to retire and start taking distributions.

We will also have the benefit of being in a lower tax bracket in retirement since the income we receive from the Roth IRA will be tax-free.

Another benefit of conversion is the ability to provide a lifetime of tax-free income to our beneficiaries. A stretch Roth IRA is similar to a stretch traditional IRA in that beneficiaries can take the required minimum distribution each year over their life expectancies. However, the Roth IRA option allows for both tax free growth and tax free distributions.

Before you convert, consider these issues

We should, however, make sure that we have sufficient funds available outside of our retirement accounts to pay the taxes required in the conversion. Funds cannot be taken out of a retirement account without penalty, so it is important to plan ahead to make sure funds are available before deciding to convert.

There will be an opportunity to spread the taxable income converted in 2010 over two tax years – half in 2011 and half in 2012.

We can also spread the conversion out over several years to spread out the tax payment over several years. This may be important to keep from pushing ourselves into a higher marginal tax bracket.

This conversion opportunity can be of great benefit, especially in these current economic times. If your modified adjusted gross income (MAGI) is below the current threshold, the best window for the conversion is now. If your MAGI is too high, the conversion date is fast approaching. In either case, it is important to talk to your financial professionals now to determine if this is right for you.

Ten tips for making timely payments of estimated tax

When the income received by you is without tax withholding, you have to make payment of estimated tax.  This happens mainly in case of self employed people. You need to be careful about the amount of estimated tax payment because underpayment will result in penalties.

If you operate your own business or act as independent contractor, you are required to make estimated tax payments.  These days many people work outside the regular employment field and start with self employment or consulting.  There is more tax withholding in this activity and so you need to pay estimated tax on your earnings.  Keep in mind the following tips while making such payments:

  • If you are expecting to pay at least $1000 by way of Federal tax this year, you must pay estimated taxes.  However if you have not paid any tax last year due to lack of profit, you need not pay any estimated tax for this year even though your earning is taxable this year.  This rule is applicable only to a U.S. citizen or a resident and the tax return for the previous year should cover all 12 months.
  • Then you should calculate the estimated tax amount.  Many people try to pay less amount thinking of earning interest on the money instead of giving it to IRS.  However remember, there are penalties for paying less in estimated taxes.
  • You have to pay the estimated tax in four installments.  These installments are based on four quarters of the year. The first payment starts on April 15 based on your income during the first quarter (January 1 through March 31). However you need not start making payments until there is some earning.  If you do not have any earnings by March 31, then you can avoid the payment due on April 15 and pay only in the balance three installments.
  • If you receive income from a large amount of investment in one year, say by selling your stocks, you may not pay estimated tax during that year.  You can delay the payment up to April 15 of the next year.  This is because your income is exceptionally high as compared to the income of the previous year.  However this free lunch is only for one year!  In the next year, you will be required to compare your income with the previous year where the income was very high.
  • When sending the payments for estimated tax, you need to obtain form 1040ES.  This form is available from the local IRS Office or you can get it by mail, phone or Internet.  Always remember to enter your social security number on this form.  You need to make checks payable to the United States treasury.
  • If you are unable to pay appropriate estimated tax, don’t get worried.  There is penalty for underpayment of estimated tax. However, the penalties equivalent to the interest calculated on the amount of underpayment.  So when the underpayment is small, penalty will also be lesser.  Also, you can make higher payment in subsequent installments so that the period of charging such interest will be reduced.
  • If you are employed for part of the year or if you are doing a part time job, you can increase your withholdings there and avoid payment of estimated tax.
  • Some people try to make estimated tax payment even when there is no such requirement.  By doing this, you are parting with the money for the period of time and losing interest on that.
  • If you estimate a sudden rise in income during the latter part of the year, you can make less payment in the initial quarter and increase it in the subsequent ones.  You can use instructions mentioned on form 2210 (underpayment of estimated tax by individuals, estates and trusts).
  • Generally self employed people have a relaxing attitude towards payment of their taxes.  This is because they have to pay taxes every quarter and not every month or every week like salaried people. This can be dangerous as waiting up to April 15 will end up in huge amount of tax liability and interest on underpaid taxes during the year.  You need to budget your money and income carefully.

    • How to Find the Right Person to Prepare Your Taxes

    Choosing the right person to prepare your taxes may not be as simple as it sounds.  Tax preparation is a very important and personal matter.  If you hire someone with little experience, they could miss sizable tax credits or deductions.  Worse yet, they could jam you up with the IRS.

    You also need to consider someone who has expertise in your particular tax niche.  Perhaps you are a traveling salesman who does a 1099, or an on the road trucker.  Both of these examples require out of the norm tax preparation and you would be best served with someone most familiar to your specific tax situation.

    If a person promises you a large refund before they even look at your tax situation, head for the hills.  There is trouble here.  Not everyone gets a refund.  Someone doing taxes and promising everyone a refund is doing something illegitimate.

    Make sure the person who is going to prepare your tax return is well trained.  Tax preparation is very complicated.  In the hands of someone less than adequately trained, your income tax return can become a nightmare.  Most importantly, check to see that the person’s training is recent.  Tax laws and guidelines change almost every year.  The person doing your taxes should have taken a recent training to update them on any new changes or amendments to the tax code.

    Make certain that the person filing your income tax return offers some sort of audit assistance or protection.  You are ultimately responsible if the Internal Revenue Service finds any irregularities in your file.  A good tax specialist, however, will offer some type of support should you face an audit.

    If you are a business owner, don’t mess around with the strip-mall chains.  You need a very good tax specialist to do your returns.  Filing for a business is a serious matter and mistakes or missed deductions and tax credits could literally cost you thousands of dollars.  Seek out the advice of friends in business.  Ask them who prepares their taxes and pick a professional, responsible tax specialist to do your business and personal returns.

    In this day and age, there isn’t a good reason that your taxes wouldn’t be filed electronically.  It’s easy, faster, and you have immediate proof of your filing.

    Don’t be annoyed by questions.  A tax professional will sound you out about many parts of your life as they relate to your income tax status.  They will want to know about your living arrangements; if you are married or single, if you live separately or together.  They will want to know your children’s ages, their school grade, and whether they are your dependents or not.  They will inquire about your personal property, homes, and cars.  You will be asked to tell them about your travel habits.  They will even want to know how far you drive to work each day.

    Don’t get upset about having to answer all these questions.  Your tax specialist is not prying.  In fact, asking a lot of questions is a sign of how thorough and professional a job you will get on your income tax preparation.

    Evaluating the Roth IRA Conversion Opportunity

    Since the creation of the Roth IRA, there have been income limits that have prevented higher earning households from opening Roth IRAs or converting traditional IRAs to Roth IRAs. On January 1, 2010, income limits will be eliminated. This will allow any interested investor to convert traditional IRAs to Roth IRAs.

    Complacency with monitoring our accounts’ diversification can lead to unnecessary risk. It is best not to be complacent when considering the current IRA conversion opportunity. It can be beneficial for many investors, and now may be a great time to consider whether it is right for you.

    What is a Roth IRA?

    Roth IRAs allow investors to put money aside for retirement. Money added to a Roth IRA does not get an immediate income tax deduction. There is no benefit upfront. The benefit comes later.

    Investors will not pay income taxes on all gains earned on that money. Any cash flow from these accounts in retirement is completely free of state and federal income taxes.

    Converting traditional IRAs to Roth IRAs

    Investors can convert some or all of the funds in their traditional IRAs to Roth IRAs. In the year of conversion, the investor will be required to pay income taxes on the amount converted. However, the benefit is that the funds will never be taxed again, regardless of the gain earned.

    Benefits of converting

    With our retirement account values down after the market fall of the last two years, now may be a good time to convert a traditional IRA to a Roth IRA. Not only will the income tax liability be lower, but we can also take advantage of tax free gains as the market recovers.

    Conversion may be good if we anticipate that our tax rates will be higher in retirement. While our highest marginal tax rate is 35% now, it has been higher in the past. Converting now enables us to pay at lower marginal tax rates than what may be in place when we choose to retire and start taking distributions.

    We will also have the benefit of being in a lower tax bracket in retirement since the income we receive from the Roth IRA will be tax-free.

    Another benefit of conversion is the ability to provide a lifetime of tax-free income to our beneficiaries. A stretch Roth IRA is similar to a stretch traditional IRA in that beneficiaries can take the required minimum distribution each year over their life expectancies. However, the Roth IRA option allows for both tax free growth and tax free distributions.

    Before you convert, consider these issues

    We should, however, make sure that we have sufficient funds available outside of our retirement accounts to pay the taxes required in the conversion. Funds cannot be taken out of a retirement account without penalty, so it is important to plan ahead to make sure funds are available before deciding to convert.

    There will be an opportunity to spread the taxable income converted in 2010 over two tax years – half in 2011 and half in 2012.

    We can also spread the conversion out over several years to spread out the tax payment. This may be important to keep from pushing ourselves into a higher marginal tax bracket.

    This conversion opportunity can be of great benefit, especially in these current economic times. If your modified adjusted gross income (MAGI) is below the current threshold, the best window for the conversion is now. If your MAGI is too high, the conversion date is fast approaching. In either case, it is important to talk to your financial professionals now to determine if this is right for you.

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