Tax time can be stressful no matter what your personal situation – should you do them yourself or hire a professional? If you do them yourself, how do you make sure you’re not overpaying or getting a refund less than you deserve? If you hire someone, how do you know who to trust? As an outsider, the world of taxes can feel intimidatingly labyrinthine, with lots of unknown hidden doors and secret routes to save money or get more back.
That’s why TurboTax is somehow committed to $0, their 2022 tax season offer that allows anyone with a simple tax return to complete their taxes for free, with as much or as little help as they want. . For those who choose to do it all by themselves and all online (even from a smartphone), there’s a TurboTax free version. For those who want to get help from a tax expert along the way, TurboTax Live Basic has to offer. And for those who really want to fully delegate their taxes, the TurboTax Live Full Service Basic offer matches users with a tax specialist who will take care of it once all the documents are uploaded. TurboTax is happy to guide you through filing your taxes with ease and getting your biggest tax refund – all for $0.
Limited-time TurboTax Live Basic for Taxpayers and TurboTax Live Full Service Basic offers are available through March 31 for taxpayers with an ordinary tax status. TurboTax free version is available in all seasons. TurboTax Free Edition, TurboTax Live Basic, and TurboTax Live Full Service Basic are designed for tax filers with a simpler tax status than simply filing Form 1040. Simple situations covered include W-2 income, limited interest and dividend income, standard deduction, earned income tax credit, child tax credit and student loan interest.
To make things even simpler, we’ve rounded up some of the most commonly overlooked tax credits TurboTax and your TurboTax Live expert will make sure you don’t miss out if you’re eligible.
earned income tax credit
It’s been just over a year since American Rescue Plan widely expanded eligibility for the earned income tax credit, so it’s no surprise if you’re not familiar with it. With EITC, low- to moderate earners may be eligible for a credit of up to $6,728 based on marital status, number of children, and other personal information. It dates back to the 70s, but has long been limited to children and people over the age of 24. Thankfully, due to the pandemic, it has been temporarily extended to those who are childless and aged 19-25 years.
standard deduction
Many people who are new to tax filing don’t even know that the IRS automatically gives you a set amount of deductions that are adjusted for inflation each year, even if you have an adult related such as a household. Not enough deductions for expenses. mortgage interest. The standard deduction will reduce your taxable income and is $12,550 if you file single, $25,100 married filing jointly, and $18,800 if you file as head of household.
student loan interest
Nothing in the world of finance is more stress-induced than student loans, but thankfully the interest on those loans can do Help you save some money (or get more returns) around tax season. Not only can you write off up to $2,500 of the interest you paid, but you can also claim it if you’ve been lucky enough to have a family member (or someone, in fact) pay it for you. ie, if you have not been claimed as a dependent.
recovery rebate credit
Speaking of not claiming as a dependent, if no one else claimed you as a dependent for 2021 and you didn’t receive the third incentive, you can claim up to $1,400 of recovery exemption when you file your taxes. Can claim credit.
child tax credit
If you’re a new parent in 2021, congratulations! You may be able to claim the Child Tax Credit, which was also extended under the American Rescue Plan. Child tax credit increased from $2,000 for each dependent child under age 6 to $3,600 and for children ages 6-17 to $3,000 for each dependent child aged 6-17. If you were already a parent before 2021, you may also receive an advance payment of your child tax. Credits are available starting last July. If you received an advance payment, remember that it was a part of your child tax credit and you must have IRS letter 6419 so that you can report the correct amount of the advance payment when you file.
cash donation
Normally you can write off charitable contributions only if you itemize your deductions, but with the passage of the American Rescue Plan, 90% of taxpayers who claim the standard deduction now receive up to $300 in cash contributions and more. You can deduct up to $600 if you are married filing jointly.
