Updated 1/29/2023
Can you believe TurboTax was created back in 1984? It took TurboTax years to get the IRS to allow them to create an online tax filing service. As per the agreement with the IRS, TurboTax allows individuals making less than $66,000 a year to use a free version of TurboTax. All you need to get started with TurboTax is a W2 and an account (If you use Mint, its the same Log-in and you get a discount). TurboTax allows you to import your tax documents or you can enter the information manually. You can also fill out your taxes for free and only pay when you file. If you’d like to file your taxes with TurboTax, click here to get started.
At this time, TurboTax offers four different tax-filing products.
Free Edition – $0
This free edition is what brings most people to TurboTax. It is for simple tax returns only and covers the following:
- W2 Income
- Unemployment Income
- Earned Income Tax Credit
- Child Tax Credits
- 1099-INT (Bank Interest)
Deluxe – $39
- Deluxe has everything the Free Edition has.
- Searches for over 350 tax deductions and credits.
- Maximizes mortgage and property tax deductions.
- Covers donations.
Premier – $69
- Premier has everything the Deluxe and Free Editions have.
- Covers Stocks, Bonds, and other Investments.
- Auto Imports investment income.
- Covers Investment Property Income and Tax Deductions
- Accurately accounts for crypto gains and losses.
Self-Employed – $89
If you have a small business or worked for DoorDash or Uber, this is the option for you.
- Self-Employed covers everything the Premier, Deluxe, and Free Editions have.
- Guidance for contractors, freelancers, and small business owners.
- Industry Specific Tax Breaks
- One-on-one help
- Personalized Audit Assessment
Step by Step Guide
While I work full time, I am also a small business owner of FinanceThrottle.com and an Independent Contractor with DoorDash and Grubhub. For that reason, I need to file using “Self Employed” by TurboTax.
When you start, TurboTax will ask you to create an account or sign in. Again if you use the personal finance app Mint, you already have an account with TurboTax. Just use the same log in credentials.
Step 1: Identifying Information
The first step is self-explanatory. You will fill out your name, state of residence, social security number, marital status, and whether or not you are filing jointly. TurboTax will also ask you if you had the following in the tax year:
- Children/dependents?
- Have you had college expenses/tuition?
- Have you paid Student Loan Interest?
- Whether or not you own a home or pay rent
- Have you had unemployment benefits
- Did you sell or trade cryptocurrency?
- Did you sell stocks or investments?
- Have you received Dividends?
- Do you have a Health Savings Account?
- Did you Donate to a Charity?
- Have you had a job?
- Have you had bank account interest?
- Have you owned rental property?
- Have you had social security benefits?
- Have you paid vehicle registration fees?
- Have you contributed to an IRA?
- Have you withdrawn from your retirement fund?
- Gambling Winnings?
- Received Alimony?
- Received Farm income?
TurboTax will give you some quick tips in relation to the options you selected above and guide you the rest of the way.
After you review the tips, TurboTax will ask you to sign electronically acknowledging that TurboTax will have access to your tax information.
Step 2: Federal Tax Returns
You will again fill out your name, residence, marital status, and a few basic questions. You will first go over your income by importing your W2’s, 1099-MISC, and/or 1099-NEC, then you will go over your deductions. You can make several deductions including contributing to your Traditional IRA or HSA account, having multiple dependents, daycare expenses, tuition expenses, business expenses, and even healthcare expenses.
Step 3: State Tax Returns
The State Tax Returns are easier to file. You will once again import your W2’s and other income documents before entering certain deductions like your contributions to a 529 account.
Step 4: Review and File
As you are filling out your income and deductions, TurboTax shows you your progress of how much you owe or how much you are getting back as a refund for both Federal and State. TurboTax will ask you to review your tax return one more time before asking you how and when you would like file and pay for your taxes.
Conclusion
Filing online by yourself with TurboTax is a very simple process that takes up to 1 hour for self-employed or as little as 15 minutes for those filing a simple free tax return. If you have Intuit Mint, look out for a discount email with a link to TurboTax giving you an additional 15% off. When I filed with TurboTax this past week, Intuit offered me the chance to be one of the first users to try their new Mint Self Employed App. I can’t guarantee you will get the same offer, but it is pretty cool to be part of a beta team testing Intuit’s latest offering.
For more information on filing for taxes as a DoorDash (or similar) driver, read my post here.
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