TurboTax Free Edition
Turbotax free edition is designed to allow low income families and individuals with qualifying incomes to file their taxes for free.
The qualifications for the Turbotax free edition are:
- You must have a qualifying income
- You must be a U.S. citizen or resident alien
- You must not be eligible to use the other Turbotax editions
When someone is paid as an independent contractor, they are not considered an employee. This means that they are not entitled to benefits like healthcare or retirement. The person who hires them pays their taxes instead of the government.
This type of income is called 1099 income because the IRS form for it is 1099-MISC and it’s a miscellaneous income. It’s also called contract work, and you can receive this type of payment from any number of sources including clients, customers, or employers.
The 1099 form is used to report all the money received by a business for services rendered in which the client does not withhold taxes from the payer’s wages or other compensation.
TurboTax Premier is the best option if you’re self-employed with 1099 income, have rental property income/expenses, or are eligible for the free version of TurboTax Freedom Edition.
TurboTax Deluxe is a software that is designed to make filing taxes easier. It includes the most popular tax forms and provides the basic features for simple tax returns. TurboTax Premier, on the other hand, includes all the features of TurboTax Deluxe and also offers more complex features like audit assistance, cost of home ownership and investment income.
Audit assistance is a service that helps with the process of auditing. This is usually done by an external professional, but it can also be done by someone inside the company who has been trained to do so. Audit assistance can be provided in many different ways:
- Internal audit assistance: this is when the company hires someone internally to provide audit assistance. This person would work both on their own as well as in conjunction with other employees to complete audits. They might also be tasked with training new employees on how to do audits.
- External audit assistance: this is when a company hires an external auditor to help them with their audits and ensure that they are being completed correctly.
- Audit consulting: this is when a company hires an outside consultant who helps them find solutions for any problems they are having related to their auditing process, such as how often they should be doing them or how best to go about doing them.
TurboTax Premier has a higher price than TurboTax Deluxe because it offers more advanced features which are not necessary for everyone. The Premier version has some additional features and benefits that make it worth the price tag. If you need to deduct investment expenses or get a refund on past-year over-payments, then you should choose this version instead of Deluxe.
Past Year Over-Payments
When a taxpayer overpays their taxes in one year, they are entitled to get that money back in the form of a refund.
Many taxpayers think of past-year over-payments as refunds, but they are not. When a taxpayer overpays their taxes in one year, they are entitled to get that money back in the form of a refund.