The TurboTax Freedom Edition, not to be confused with the regular Free Version, is a tax preparation software offered by Intuit¹. It’s designed for individuals with simple tax returns and offers free federal and state tax preparation⁴.
Who Can Use It?
The Freedom Edition is ideal for those with W-2 income and those looking to maximize tax credits for dependents¹. It’s also suitable for individuals who qualify for the Earned Income Tax Credit (EIC) and Child Tax Credit¹.
The software is user-friendly and guides users step-by-step through the tax filing process¹. It allows users to import their W-2 forms, answer basic questions about their life, and get their maximum refund¹. The software also offers features like CompleteCheck™, which scans your return to ensure it’s 100% accurate¹.
While the Freedom Edition is more fully-featured than the regular Free Edition, it’s intended for simple tax returns only⁴. It does not cover situations like itemized deductions, unemployment income reported on a 1099-G, business or 1099-NEC income, stock sales, rental property income, or credits, deductions and income reported on other forms or schedules².
Users have praised TurboTax Freedom Edition for its ease of use and helpful features. Some testimonials include appreciations for its user-friendly interface and stress-free tax preparation process¹.
In conclusion, the Freedom Edition is a valuable tool for individuals with simple tax situations looking to file their taxes at no cost. However, it’s important to understand its limitations and ensure it suits your specific needs before using it. For more complex tax situations, other versions of TurboTax may be more appropriate.
When I filed my taxes for the first time, I didn’t have Turbotax or any other program to help me out, no Turbo Tax Advice. It was a very intimidating and scary process for me and I was constantly worried about messing up and having to pay a penalty to IRS. Filing for taxes is an easy job if you are aware of what you need to do. The following are some of the tips and 2015 Tax Advice that you can use as a first time tax filer:
The first thing that you need to do is to organize all your files and documents. Have all these stored in one place, be it the forms, the receipts or other kinds of relevant documentation. By doing this you will be able to save a lot of time and also make the whole process more easy and convenient. Next, you should also check whether you qualify to file for free or not. If you have a W-2 along with very little bank interest then you would qualify.
Also, do not forget about filing for your state taxes with TurboTax 2015. When you have a tax filing program like TurboTax, you would be able to file for state taxes and federal taxes easily because all your information can be transferred automatically. Another top tip to keep in mind would be to file online using Turbo Tax Advice instead of doing the process manually because the latter is a time consuming process and the scope for errors is also higher.
According to a recent Government Accountability Office report, the IRS continues to leave its vast computer systems without proper security. Private taxpayer data is vulnerable to hackers, fraudsters and former IRS employees. This GAO report tells of significant deficiencies relating to the financial reporting systems. Millions of Americans are rightfully concerned because they are required by law to file tax returns but worry about fraud.
The IRS must continue making improvements to taxpayer financial data controls. This news comes in the wake of a very unpleasant six weeks for taxpayers and the IRS. Taxpayers have entered this filing season with greater fears over fraud. TurboTax recently announced it was suspending tax return filings due to fraud.
Taxpayer distress became more severe when some learned that their tax return had been filed by someone else who received their refund. At first, it did not involve federal taxes, only state returns. The FBI began investigating returns filed using TurboTax. Those interviewed about this spoke of data being compromised and returns may have been filed on the basis of 2013 returns.
The report tells of easily compromised IRS passwords and outdated software having improper security functions. Worse yet, at times the IRS fails to delete access for employees who quit or have been fired.
Additionally, former employees of the IRS retain access to its data system when they should have been immediately cut off. A co-author of the report says that there is a plethora of taxpayer data that remains at risk for identity theft.
Taxpayers have no confidence in the credibility and security of the IRS especially after the Treasury Inspector General for Tax Administration stated that 1.6 million taxpayers had been affected by identity theft early in 2014. It was a fraction of that four years before. Electronic filing likely plays a role.
The GAO warns that gaining access to IRS files does not require much sophistication on the part of hackers. At the same time, it reports that some security weaknesses have been addressed, but more improvements must be made.
We are currently in the midst of the tax season, and many tax filers already received their refunds. These individuals should feel happy and lucky because there is an issue currently afflicting the tax industry. Based on recent reports from the TheBestCompanys.com, some individuals are not receiving the refunds they were expecting. Apparently, identity thieves found a way to claim and steal from these unsuspecting individuals. Try using TurboTax 2015 next year.
Since the start of the year, internet fraud on the Turbotax 2015 free platform increased by approximately 37%. This percentage includes suspicious filers and filers who had their information compromised by hackers. TurboTax 2013 creators were not aware of this glitch for quite some time. When they discovered the issue, they started making changes to their interface, and now these issues are becoming less frequent.
The chief tax officer of Intuit, David Williams, believes internet fraud will be an ongoing problem. If they correct one problem, he expects a similar problem to pop up somewhere else. Intuit plans to do their part by placing safeguards and deterrents in vulnerable spots within the interface. Make sure to keep your data safe by updating the software often and working in a secure environment.
This will help out the tax filer tremendously, but the tax filer needs to do their part as well. Intuit encourages tax filers to guard their information when they are filing a tax return. This will put another barrier in front of any hackers and thieves. Use a firewall on your personal computer, run virus scans, and do not use public wifi services that are not secure. Thinking about doing your taxes from a hotel room, wait to get home as hotel wifi signals are not secure.
Sales taxes are a fact of American life, and they are really noticeable in the area of fast food. Lets review some Sales Tax Rules to make sure you are following the law.
For instance, when a hungry consumer drives through his favorite drive-thru, he should expect to pay the price of his burger plus additional coinage to cover sales tax. Most states, counties and municipalities feed their coffers by charging a local sales tax on most every kind of purchase imaginable. Local law regulates what purchases are taxable and at what rate.
Application of sales tax regulations is not always straightforward, though. “Prepared food” sales tax rules are different from sales tax rules on single items such as milk or bread. For example, a take and bake pizza at your local eatery incurs sales tax, but some people, and states, are confused and upset about that. Is a cold pizza that the customer has to take home and bake actually prepared food?
Amazingly, the states of South Dakota and Arkansas wrote and published rules which say that pizza which is put together in a store and the baked at home is actually a prepared, and taxable, food because the restaurant had to assemble two or more ingredients to put the product together.
The Streamlined Sales and Use Tax Governing Board says a take and bake pizza is prepared food and therefore, taxable. The state of Wisconsin has a flow chart that its Department of Revenue employs to apply sales tax regulations to pizza and everything else.
Recently, an amendment to the Streamlined Sales and Use Tax Agreement says all states can make their own decisions on which pizzas are subject to sales tax. Yes, even pizza can get complicated when it comes to the tax man.
H&R Block specializes in navigating the muddiest of tax waters for the American taxpayer.
The US Government has recognized Bitcoins which is good in a way but at the same time they have decided to view them as property, making them taxable. If they had decided that the virtual currency actually was a currency then a tax could not be placed on them when they gain in value. Some view this as making the currency legitimate, and a good thing.
The fact that they can now be taxed reduces the interest for some who see the risk in the fluctuations in value and don’t want to take on the additional tax risk. Spending them would trigger the taxation while holding onto the property would not create a taxable situation. An odd part of the IRS decision is that miners would need to count their Bitcoins as income.
Stability in the marketplace is what many hope for with a couple exchanges having financial trouble in recent months. This decision by the government should increase stability.
It will be interesting to see if there’s a form to claim Bitcoin income in the future or if exchanges will need to issue 1099 tax forms to miners at the end of each year.