Community News & Announcements

🌟 Hello again, amazing online community! 🌟 I've got another exciting "this or that" question for all of you today. Get ready to make a tough choice and let's dive right in: Would you rather have the ability to time travel to the past or to the future? ⏰ Option A: Time Travel to the Past! If you're a history enthusiast or have a burning curiosity about the past, this option might be perfect for you. Imagine being able to witness iconic historical events firsthand, meet legendary figures, or even correct past mistakes. The past holds countless mysteries and stories waiting to be explored, and with the power of time travel, you can unlock those hidden treasures. ⌛ Option B: Time Travel to the Future! If you're fascinated by the unknown and have a keen sense of adventure, this option might be right up your alley. Picture yourself journeying forward in time, discovering technological advancements, exploring distant worlds, and unraveling the mysteries of what lies ahead. The future is full of endless possibilities, and with time travel, you can be at the forefront of those discoveries. Remember, both options offer unique experiences and opportunities for exploration. So, which option would you choose? Share your thoughts and reasons in the comments below! Let's ignite our imaginations and embark on this exciting journey together! 😄🚀🔮

This sweepstake has ended Thank you so much to everyone that participated! We appreciate you sharing your experiences with our community. A winner will be randomly selected and contacted to claim their prize. ++++++++++++++++++   A friendly welcome to our new and returning community members!    We’re excited to share another sweepstakes and another chance to win a $100 gift card with you. This month, we’re discussing how those big changes in life can impact your taxes.    Was 2023 a big year for you? Maybe you finally bought that house you have been working so hard for, or possibly your baby bird flew the nest and went off to college, or if you're really lucky, maybe 2023 was the year you retired and now you're enjoying a new chapter of life! Whether you welcomed a new baby or you're contemplating a move across state lines for your dream job, your tax situation may change with these life events. Share your big life changes below to be entered for a chance to win a $100 gift card. A winner will be randomly selected on October 25, 2023.    If you have questions about how major life events can affect your taxes, please check out this blog post and join us for a LIVE Q&A on  Wednesday, October 25, 2023, any time between 9:00am and 5:00pm Pacific Time to ask Tax and Financial Experts your questions and get advice about taxes and personal finance, for free! Learn more and RSVP here.                                                                                                                                                                                                                                                                                                                      +++++++++   We will be hosting the Big Life Changes Sweepstakes to give you, and others, the opportunity to share your experiences. One lucky winner will be chosen randomly to receive a $100 gift card.   WHAT: Sweepstakes for a $100 gift card WHEN: Entries will be accepted from October 18, 2023, 11:00 AM through October 25, 2023, at5:00 pm Pacific Time HOW: Enter by adding a comment to this post sharing any big life changes you expect to affect your taxes. If you are the winner, we will send you a private message. The winner will be selected at random on October 25, 2023

If you’re in one of California’s affected counties, you now have until November 16, 2023 to file and pay your 2022 taxes. Both the IRS and the State of California have extended this deadline.  It’s automatic and no further extension request is required on your part. According to the IRS, 55 of California's 58 counties (all except Lassen, Modoc and Shasta counties) qualify.  The original decision to extend (previously to October 16, 2023) was due to last winter’s natural disasters in the state. This additional month will provide much needed relief to those still recovering from those events.  As always, TurboTax is here to help!  Reach out and get Expert Advice your way. You can also check out the resources below for more details and assistance. IRS Announcement - For California storm victims, IRS postpones deadline to Nov. 16IRS provides tax relief for California storm victimsWhat are the tax deadline extension for those affected by natural disasters?Last Minute Help: Finish & File Your Tax Returns

This sweepstake has ended Thank you so much to everyone that participated! We appreciate you sharing your experiences with our community. A winner will be randomly selected and contacted to claim their prize. ++++++++++++++++++   Welcome back to our new and returning community members! We’re so glad to have you here with us today. We’re excited to share another chance to win a $100 gift card this month. We’ll be discussing Extension Filing and how that may impact your tax planning.  Tax extension filers are individuals or businesses who opt to request additional time to submit their tax returns to the Internal Revenue Service (IRS). This extension allows them to delay the filing deadline, which is typically on April 15th but is extended to October 15th. Tax extension filers may choose this option for various reasons, such as needing more time to gather necessary documentation, facing complex financial situations, or simply wanting to ensure accuracy in their tax filings. By obtaining a tax extension, these individuals and businesses can alleviate some stress and ensure they have ample time to complete their tax returns accurately and efficiently. To be able to win the $100 gift card we’d like for you to comment on this post with the answer to these questions: If you, a family member, or someone you know has filed an extension with the IRS, what was the reason? Are you/they ready to file, officially, next month? If you’d like to learn more about tax extensions we have plenty of experts available to answer all of your questions! Join us for a LIVE Q&A on Wednesday, September 27th any time between 9:00am and 5:00pm Pacific Time to ask Tax and Financial Experts  your questions and get advice about taxes and personal finance, for free! Learn more and RSVP here.          Remember that replying to this post by telling us about why an extension was filed and letting us know if you are ready to file next month will enter you in a chance to win a $100 gift card. A winner will be randomly selected from this thread on September 27th, 2023.                                                                                                              +++++++++ We will be hosting the Extension Filers Sweepstakes to give you, and others, the opportunity to share your experiences. One lucky winner will be chosen randomly to receive a $100 gift card. WHAT: Sweepstakes for a $100 gift card WHEN: Entries will be accepted from September 20, 2023 through September 27, 2023 at 5:00 pm Pacific Time HOW: Enter by adding a comment to this post sharing why you, a family member or friend filed an extension and if you/they are ready to file next month. If you are the winner, we will send you a private message. The winner will be selected at random on September 27, 2023

Did you file a tax extension? Perhaps you needed a little extra time to track down missing tax documents, had an unforeseen life event, or just procrastinated (let’s face it - we all do at times). The reason doesn’t matter, but the deadline to file does! The extension deadline of October 15, 2024 (for 2023 tax returns) is rapidly approaching. The time to file is now!  If you’re still reading this, it’s possible you need a little extra information on how filing an extension might have affected your tax returns. If that’s not you, just jump right into your TurboTax account and finish up your tax returns.  For the rest of you, let’s first make sure there’s a clear understanding of what filing a tax extension really means - just so there aren’t any unexpected “taxing” surprises. Filing a tax extension is a great option if you need a little extra time to file your taxes. However, it’s only an extension of time to file your tax returns, not to pay any taxes owed.  If this is news to you, and you owe more taxes, you may end up paying underpayment penalties and interest. On top of that, if you didn’t timely file the extension form (Form 4868) or you miss the extension deadline, you may also end up owing late-filing (aka failure-to-file) penalties. Those failure-to-file penalties can add up to 25% of the tax due. Ouch!! Don’t worry too much…just yet. It’s likely that if you aren’t already aware of these penalties you may be a first-time “offender”. The IRS is willing to help out if it’s your first offense or you have what they consider to be reasonable cause. And of course there are rules that you’ll want to read about to make sure you qualify for a penalty abatement.  Another reason to not worry about penalties (quite yet) is that the IRS gives you a couple more “outs” and doesn’t penalize you if certain criteria are met. For example, if you paid (either through withholding or quarterly estimates) at least 90% of the current tax liability you won’t be charged a penalty. You also won’t be charged one if your balance due is less than $1,000, or you paid 100% of the prior year’s tax liability (110% in the case of higher income taxpayers).  Confident you’re getting a refund? Then, it may not be a big deal if you don’t meet the extension filing deadline or even if you didn’t file the extension form. There are no penalties if you don’t owe more taxes. But, don’t procrastinate on filing for your refund. You have only three (3) years from the tax return due date to file and claim that refund. It’s the IRS’s way of saying “if you snooze, you lose” - and they’re happy to keep your hard-earned tax dollars if you don’t claim your refund within their timeline. Still missing important tax documents? Did you forget to contact that brokerage firm or former employer to get your missing tax docs? No worries at all! There’s a good chance the IRS has some, or most, of that information already. In many cases, you can obtain Wage and Income Transcripts directly from the IRS website. You will have to create an account (if you don’t already have one) and go through a process to verify your identity. They won’t give your tax info to just anyone, after all!   If you need more details than what you can find in your IRS account, you should make every attempt to obtain it prior to filing your tax returns. If it’s not possible, file by the deadline anyway using the most accurate information you have available. This way you can avoid late-filing penalties. Once you have those final details or precious “missing” tax documents, you can amend your tax return. Did you make a payment with your extension? Make sure you get credit for it on your tax return. This help article will show you how to enter it into TurboTax. And don’t forget to enter any quarterly estimated tax payments you made toward your 2023 tax return.  Now you’re ready and are going into the TurboTax software to finish up your tax return. Suddenly, you feel overwhelmed and can’t quite figure out what you already entered, or didn’t enter. If that’s frustrating you, it might be easier to simply clear your return and start over. There are restrictions to using that feature, so make sure you read the details on the linked help article. And, of course TurboTax Experts are here to help!  Pro Tip:  Taxpayers in some areas of the country may have longer to file their tax returns. Sadly, this usually happens in areas in need of disaster relief, but it could be for other reasons as well. Take a look to see if there are further tax filing extensions in your location.  A few helpful links:I filed an extension and made a payment. How do I get credit for it? Where do I enter my estimated tax payments?How do I clear and start over?Guide to IRS Tax Penalties: How to Avoid or Reduce Them(Updated September 16, 2024)

This sweepstake has ended Thank you so much to everyone that participated! We appreciate you sharing your experiences with our community. A winner will be randomly selected and contacted to claim their prize. ++++++++++++++++++   A friendly welcome to our new and returning community members!    We’re excited to share another sweepstakes and another chance to win a $100 gift card with you. This month, we’re discussing Self-Employed Quarterly Filing and how they impact your tax planning.    Tax planning as a self-employed individual is like being the captain of your own financial ship. You navigate the waters of deductions and credits, ensuring smooth sailing towards maximum savings. With a keen eye for detail and a strategic mindset, you can leverage every opportunity to maximize your savings. For this month we are going to ask you to leave a comment down below letting us know what your small business/side gig is. Whether you are a dog walker or own a coffee shop, we have plenty of experts available to answer all of your self-employed quarter filing questions! Join us for a LIVE Q&A on Wednesday, August 30th any time between 9:00am and 5:00pm Pacific Time to ask Tax and Financial Experts  your questions and get advice about taxes and personal finance, for free! Learn more and RSVP here.           Remember that replying to this post by telling us about your small business or side gig will enter you in a chance to win a $100 gift card. A winner will be randomly selected from this thread on August 30, 2023.     +++++++++ We will be hosting the Self-Employed Quarterly Filing sweepstakes to give you, and others, the opportunity to share your experiences. One lucky winner will be chosen randomly to receive a $100 gift card. WHAT: Sweepstakes for a $100 gift card WHEN: Entries will be accepted from August 24, 2023 through August 30, 2023 at 5:00 pm Pacific Time HOW: Enter by adding a comment to this post sharing any major life events you expect to affect your taxes. If you are the winner, we will send you a private message. The winner will be selected at random on August 30, 2023

This sweepstake has ended Thank you so much to everyone that participated! We appreciate you sharing your experiences with our community. A winner will be randomly selected and contacted to claim their prize. ++++++++++++++++++   A friendly welcome to our new and returning community members!    We’re excited to share another sweepstakes and another chance to win a $100 gift card with you. This month, we’re discussing where you’d like to retire.    As we grow older and our lives change, we get our first job, grow our retirement fund, we marry, purchase a home, have children, those children go off to college, and eventually we retire. Even if we don’t take the traditional route we are all expecting retirement. All of those major life events can impact your taxes, savings, or retirement plans. One thing most of us look forward to is retiring in a peaceful location. To some that is a beach and to others it could be outside of the USA. Reply to this post with your ideal retirement location and why you chose that place and you'll be entered for a chance to win a $100 gift card. One lucky winner will be randomly selected from this thread on July 26, 2023.          If you have questions about how major life events can affect your taxes, please join us for a LIVE Q&A on  Wednesday, July 26th any time between 9:00am and 5:00pm Pacific Time to ask Tax and Financial Experts  your questions and get advice about taxes and personal finance, for free! Learn more and RSVP here.                                                                                                                                                                                                                                                                                                                                +++++++++   We will be hosting the Retirement & Life Events sweepstakes to give you, and others, the opportunity to share your experiences. One lucky winner will be chosen randomly to receive a $100 gift card.   WHAT: Sweepstakes for a $100 gift card WHEN: Entries will be accepted from July 14, 2023 through July 26, 2023 at 5:00 pm Pacific Time HOW: Enter by adding a comment to this post sharing your ideal retirement location. If you are the winner, we will send you a private message. The winner will be selected at random on July 26, 2023.  

  This sweepstake has ended Thank you so much to everyone that participated! We appreciate you sharing your experiences with our community. A winner will be randomly selected and contacted to claim their prize. ++++++++++++++++++   Hello all, welcome to our new and returning community members!  I hope you’re all as excited as we are to share with you the possibility of winning a $100 gift card. This month, we’re opening the discussion to anyone who shares their thoughts on electric vehicles. Owning an electric vehicle (EV) can be an exciting and environmentally friendly way to get around. Unlike traditional gas-powered cars, EVs run on electricity, which means they produce zero emissions and are much more efficient. EVs also have a lower operating cost than gas-powered cars, as electricity is typically less expensive than gasoline.  One of the biggest benefits of owning an EV is the convenience of charging at home. With a Level 2 charging station, you can easily charge your car overnight and wake up with a full battery in the morning. Additionally, many public charging stations are available for longer trips or when you're away from home.  While there are some challenges to owning an EV, such as limited range and the need for charging infrastructure, the benefits are undeniable. With more and more car manufacturers offering EV options, it's becoming easier than ever to make the switch to an environmentally friendly and cost-effective vehicle. Respond to this post with your thoughts on electric vehicles and you will be entered in the sweepstakes for a chance to win a $100 gift card. One lucky winner will be randomly selected from this thread on June 28th, 2023.      If you have questions about Tax Law Changes (energy/EV credit) or would simply like to learn more about your taxes, please join us for a LIVE Q&A on Wednesday, June 28th any time between 9:00 AM and 5:00 PM Pacific Time to ask Tax and Financial Experts your questions and get advice about taxes and personal finance, for free! Learn more and RSVP here.                                                                                                       +++++++++   We will be hosting the Electric Vehicle sweepstakes to give you, and others, the opportunity to share your experiences or thoughts with us. One lucky winner will be chosen randomly to receive a $100 gift card.   WHAT: Sweepstakes for a $100 gift card WHEN: Entries will be accepted from June 14th, 2023, through June 28, 2023, at 5:00 pm Pacific Time HOW: Enter by adding a comment to this post sharing … If you are the winner, we will send you a private message. The winner will be selected at random on June 28, 2023.

UPDATE: On November, 21, 2023 the IRS announced a delay in implementing the $600 threshold amount required to file Form 1099-K . Per the IRS "...the IRS is planning for a threshold of $5,000 for tax year 2024 as part of a phase-in to implement the $600 reporting threshold enacted under the American Rescue Plan (ARP)." For tax year 2023, the original amounts of 200 in transaction or $20,000 in revenue for the year remain in place as the phase-in to $600  threshold progresses. If you receive money through an app (and most of us do), you might be surprised to receive a new tax form. It’s called Form 1099-K and they’re “all the rage” right now! If you have no idea what this form is, let me fill you in!  Prior to 2024, payment platforms and apps such as PayPal, Venmo, CashApp and many others were only required to send a Form 1099-K to their customers who exceeded 200 transactions or over $20,000 in revenue for the year.  Starting in tax year 2024, you’ll receive one if you had $5,000 in transaction revenue. That’s quite a change!  It seems the IRS‌ is trying to track that elusive side gig and hobby income - and they don’t want anyone to feel left out! But in doing so, they may have created a confusing situation for many taxpayers who don’t have any real business or hobby income at all, yet still receive a 1099-K form.  For example, if you sell items on Facebook Marketplace that total $5,000 or more for the year, you might receive the 1099-K “invite” to report that income on your tax return. This could happen even if you were only selling personal items (like you would at a garage or yard sale). If that sounds like you, take a peek at this article about how to handle it.  Here’s a twist you might not see coming! Right now, the preferred method to send money to friends or family is through an app, right? The 1099-K form may not be only for those who sell physical items or provide services to others. Sending monetary gifts totaling over $5,000 (per year) could trigger the form. The good news is that the money-transferring platforms are working on methods to distinguish between business and personal transactions. Until then, your family member will get that Form 1099-K (and so will the IRS) for your gifts to them! Are they ready for that?! The bottom line is if someone receives a Form 1099-K for personal transactions, they can’t simply ignore it. The IRS will expect to see it on their tax return.  And if you do have a legit business, sell online for profit, or have a little side gig - you’re better off prepared. You’ll want to learn the ins and outs of the Form 1099-K and how to reduce the amount of income you’ll pay taxes on.  Pro Tip: Don’t commingle personal and business income, especially on payment platforms. There are still some kinks to work out with the new 1099-K reporting requirements. ‌But until that happens, it’s best to avoid further “invites” from the IRS (in the form of letters or audits) and get your taxes done right! 

We're excited to introduce our newest series of TurboTax Community Tax Expert Tutorial Videos. These videos are designed to help you navigate the ins and outs of tax preparation and get the most out of your return. Whether you're a seasoned taxpayer or filing for the very first time, these videos are a valuable tool to help you maximize your tax savings. The TurboTax Community is where you can talk taxes 24/7! The "How to Join the TurboTax Community and Post a Question?" and "How to Search the Community?" tutorials can help you get started.  By tapping into this extensive community of Experts, Champs, and fellow taxpayers, you'll be better equipped to handle any tax-related questions or concerns that may arise. Our tutorials on "How to Enter the Clean Vehicle Credit?" and "How to Enter Home Energy Tax Credits?" will help you save money on taxes if you've made qualifying energy-efficient improvements to your home or purchased a clean vehicle.  If you're receiving retirement income on a 1099-R, our tutorials on "How to Enter a Required Minimum Distribution?" and "How to Enter Qualified Charitable Distributions?" will help you file easily and take advantage of tax-saving strategies.  Also, our Community Tax Experts discuss how your filing status can impact your tax refund and how to update your withholdings on your paycheck, in our videos on "How Does My Filing Status Affect My Tax Refund?" and “How to update your W-4?”. With TurboTax Community Tax Expert Tutorial Videos, you are empowered with the information that you need to get the most out of your tax return and file with confidence. Happy filing!

Were you surprised that you owed more in taxes this year - or that your refund was less than what you expected? If so, you’re not alone. This can happen for many reasons, but one main culprit is you’re simply not having enough taxes withheld from your salary or wages - and that means adjusting your W-4 tax withholding form. Let’s see what we can do to help figure out that W-4 form and get your tax refund back on track! Since 2020, when the IRS changed the W-4 tax withholding form, many taxpayers (and professionals) have discovered that getting the proper amount of taxes withheld from paychecks is not an easy task. It’s no longer about how many “exemptions” you claim. Now you must know all of your numbers - what additional income you’ll have and your expected deductions too. As surprising as it sounds, it can be difficult to calculate your total income from all sources - let alone which deductions actually affect your tax refund. Is your crystal ball polished up and ready to go?  Let’s make some predictions!  As life events happen, you usually need to update your W-4 too. Perhaps you have a child that is leaving the nest or you paid off the mortgage that bumped your itemized deductions to an amount higher than the Standard Deduction. Maybe you stopped contributing to your employer’s retirement plan (hopefully this didn’t happen) or you had some other life-changing circumstance that affected your finances. Those things can absolutely increase the amount of taxes you owe, or reduce your refund.  But, how much more will you owe? Which new tax bracket will you be in? Do you file Single now instead of Head of Household?  How much did that mortgage actually help you - in tax dollars? Are you losing a tax credit next year? Yep - this is where that crystal ball comes in handy!  It’s complex because taxes are complex.  There are multiple tax brackets and your income and filing status can affect the ability to claim specific deductions or credits. What this means is that only $1,000 of fewer deductions (or increased income) can result in additional taxes ranging from $100-$370 or more!  And “credits” are an entirely different category of tax benefit. If you are no longer able to claim $1,000 in a tax credit, you could owe an additional $1,000 in taxes. That’s right, tax credits are usually dollar-for-dollar tax savings.  So, when it’s time for you to update your W-4, there is no possible way for it to be exactly correct - unless your predictions are 100% accurate and your crystal ball is not glitching out on you!  The W-4 form itself is nearly impossible for most people to complete. Step 1 in filling out the form is self-explanatory as it’s all personal info in that section. Steps 2-4 are a bit more challenging. If you enjoy a bit of confusion and being referred to various worksheets to complete (what should be) a simple tax withholding form, you can look at the actual W-4 form and instructions. As you will see, the W-4 form is more than complex for a “non-mathy” type of person. The solution! Can’t quite follow those instructions - or maybe you didn’t quite get that crystal ball cleaned up? No worries! TurboTax has you covered with the most amazing W-4 Calculator! It’s so easy and accurate. In the end it will even tell you what to put on each line of the W-4. And it’s 100% free to use. Yay!! Oh, and here’s a little tip if you expect all of your income and deductions to be roughly the same this year: Take a look at your prior year tax return. If you had a balance owed last year, divide that number by the number of pay periods left for this year. Then on line 4(c) of the W-4 form enter at least that amount. Unless something dramatic changes with your income and deductions, you should be pretty close to having the correct amount withheld.  For example: If you owed $2,000 more in taxes and have 10 more “pay periods” this year, that’s $2,000/10 = $200 that would go on line 4(c).  And if you want a refund - just pad that line 4(c) with a dollar amount that goes above and beyond what you expect would be your additional taxes owed.  Don’t know where to start? That’s okay! You can drop some numbers into the TurboTax TaxCaster to get an idea of how much your refund will be, or how much you’ll owe.  Then, adjust your W-4 accordingly.  Are you still confused about what a W-4 is and why it’s needed?  This article explains exactly what a W-4 is, what it does, and why it’s needed.  And, for anything else you want to know about the W-4 form, the following are great resources to help you out! How To Estimate Federal Withholding Form W-4 and Your Take-Home PayThe W-4 Form Changed in Major Ways — Here's What's Different

This sweepstake has ended Thank you so much to everyone that participated! We appreciate you sharing your experiences with our community. A winner will be randomly selected and contacted to claim their prize. ++++++++++++++++++ A friendly welcome to our new and returning community members!    We’re excited to share another sweepstake and another chance to win a $100 gift card with you. This month, we’re opening the discussion to anyone who has filled out a W-4 in the past.    A W-4 is one of the first forms you fill out when you get a new job. This form indicates your federal income tax withholding preferences. For some, this form can be a bit overwhelming, more so if you aren’t familiar with taxes. Have you filled this form out and had too much or not enough taxes withheld? For our sweepstakes this month we will ask you to share any suggestions you may have about filling out the W-4. Replying to this post with your “W-4 suggestions” will enter you in a chance to win a $100 gift card. A winner will be randomly selected from this thread on May 24, 2023.      If you have questions about filling out a W-4, please join us for a LIVE Q&A on Wednesday, May 24th any time between 9:00 am and 5:00 pm Pacific Time to ask Tax and Financial Experts your questions and get advice about taxes and personal finance, for free! Learn more and RSVP here.                                                                                                                                                                                                                                                                                                                             +++++++++   We will be hosting the W-4 Suggestions sweepstakes to give you, and others, the opportunity to share your experiences. One lucky winner will be chosen randomly to receive a $100 gift card.   WHAT: Sweepstakes for a $100 gift card WHEN: Entries will be accepted from May 10, 2023, through May 24, 2023, at 5:00 pm Pacific Time HOW: Enter by adding a comment to this post sharing … If you are the winner, we will send you a private message. The winner will be selected at random on May 24, 2023.

What a relief! Your taxes have been filed and you’re so happy that’s over with!  But wait - you might not be done quite yet. After you file there are a few things you should do to be sure that what happens next goes smoothly. Did you print or save a PDF copy of your tax return(s)? This is more important than you might think. You’ll need them to help you complete future tax returns, purchasing a home, and applying for financial aid. If you get audited or if they need to be amended, you will absolutely need a copy for those reasons too. Make sure to print or save a copy as soon as you finish filing. And keep them for a minimum of three years - seven years is better! Have you confirmed that your tax return has been Accepted? Being Accepted means that the IRS and/or state tax authorities have your return and can begin to do their job of processing them. You’ll receive an email from TurboTax telling you if they’ve been Accepted or Rejected within a few days from when you submit your tax returns.  If your return was Accepted it’s time to keep an eye on the status until your refund is in your hands! If you owe money, make sure to pay it before the deadline to avoid late payment fees. Usually within 24-48 hours after being Accepted, you can see the progress by checking the status directly through TurboTax. If you prefer, you can also watch it right on the IRS or state taxing authority’s website.  In case you’re wondering, federal refunds typically take 21 days to process (for refunds that are directly deposited) and state refunds vary by state. If your return was Rejected, that’s okay. It’s usually a simple fix. The email you receive (from TurboTax), telling you that it’s been Rejected, will have a reject code in it to help you identify the reason. You’ll find common reject codes and the steps to fix them here. Did you remember something that should have been included in your tax return? Maybe you realized that income from a side job was missing. Or perhaps you forgot all about that crypto you were experimenting with over the summer. Oops!!  No need to worry! For some missing income items, the IRS might quickly catch it on their own and send you a letter with adjustments. Better yet, you should Amend your tax return(s) if it impacts the final outcome. This helps to avoid, or reduce, potential underpayment penalties and interest. Don’t forget to also amend your state return, if needed. NOTE: To make sure the IRS didn’t already make an adjustment, you should wait to amend your tax return until after the IRS fully processes your original return. Has it been too long - and you’re wondering why you haven’t received your refund yet? This could happen for many reasons. Most of the time, it’s simply an IRS backlog and your tax returns will be processed soon. However, it might be that the IRS did discover a missing item - or there was an error or inconsistency with an entry. Whatever the reason, if the IRS needs clarification, or makes an adjustment, you’ll soon receive a letter explaining the details.  That’s it! Now it’s time to start getting ready for next tax season! (Too soon…?) Check out these other articles that contain more helpful information! My return got Accepted. What happens next?Where’s My Refund: How to Get it Fast! What does it mean to “amend” a return?

This sweepstake has ended Thank you so much to everyone that participated! We appreciate you sharing your experiences with our community. A winner will be randomly selected and contacted to claim their prize. ++++++++++++++++++   Who doesn’t love getting a tax refund check in the mail or deposited directly into your bank account! It’s like finding money you didn’t even know you had. Tax refunds are a source of relief for many taxpayers who have overpaid their taxes throughout the year. For those that have yet to receive their tax refund, next week we’re hosting the All About the Refund event.   Depending on your financial goals or priorities, there are many different ways to put your tax refund to work! You could pay off debt, save for emergencies, take a vacation, or invest for retirement. For our Sweepstakes this month, we’re discussing tax refunds and giving our community members another chance to win a $100 gift card. Simply share what you plan on doing with your tax refund below to be entered into a drawing for a $100 gift card.  A winner will be randomly selected from this thread on April 5, 2023.       If you have questions about your tax refund, please join us for a LIVE Q&A on  Wednesday, April 5th between 9:00am and 5:00pm Pacific Time to ask Tax and Financial Experts your questions and get advice about taxes and personal finance, for free! During this event you can ask our tax experts anything you want about your tax refund. It’s not uncommon to have questions such as “How do I know when to expect to receive my refund?” or “How can I track the progress of my refund?”  Learn more and RSVP here.                                                                                                                                                                                                                                                                                                                                 +++++++++   We will be hosting the All About the Refund  sweepstake to give you, and others, the opportunity to share what you plan on doing with your refund. One lucky winner will be chosen at random to receive a $100 gift card.   WHAT: Sweepstakes for a $100 gift card WHEN: Entries will be accepted from March 29, 2023 through April 5, 2023 at 5:00 pm Pacific Time HOW: Enter by adding a comment to this post sharing your plans on how you’ll use your tax refund. If you are the winner, we will send you a private message. The winner will be selected at random on April 5, 2023

Have you wondered how to avoid paying taxes on your crypto transactions? There’s only one sure way to not create a tax situation with cryptocurrency - buy it and never do anything with it - ever!  Almost anything else you do with your “digitals dollars” will result in a requirement to report it on your tax return.  As a matter of fact, the IRS has a specific crypto question on your tax forms that you must answer. This is how the IRS Form 1040 question reads with regard to digital currency: “At any time during 2022, did you: (a) receive (as a reward, award, or payment for property or services); or (b) sell, exchange, gift, or otherwise dispose of a digital asset (or a financial interest in a digital asset)?”  Whew! Let’s just say that covers pretty much everything you would do with cryptocurrency, except buying it. Even though we know the IRS is serious about getting their share of your digital profits, there is still much confusion about what needs to be reported. As stated above - nearly everything, except those straight up purchases, should be reported on your tax return. Let’s explore some common examples that you might be familiar with. “They told me as long as I don’t cash out - I can trade all the crypto I want and the IRS doesn’t care.” The fact is that when trading, you are “selling” one asset and buying a different one. It’s similar to the buying/selling of stocks or mutual funds. The difference (in US dollars) between the price you paid for the asset, and the value on the date you sold it is considered taxable gain (or loss). If you owned the crypto for more than one year, it’s called long-term gain (or loss) and if you owned it for one year or less, it’s short-term. Those sales are taxed at different rates depending on your income and if it was short- or long-term. “When I consulted for her business she gave me some crypto as a thank you gift. Why do I have to include that as business income?” A gift isn’t always just a gift.  Sometimes they do have strings attached - and this is one of those times! When you are in business and someone gives you something of value in exchange for any service or product you provide, it’s the same as getting paid “cash money”.  You’ll need to figure out the value at the time you received the cryptocurrency and report it in your Gross Income for your business. And yes, it’s also subject to self-employment tax if you are a sole proprietor.  “I received some Bitcoin as a gift and sold it.  Gifts aren’t taxed, right?” Okay, maybe you really did receive that “coin” as simply a gift.  You’re right, most gifts aren’t taxed to the recipient (different rules for the gifter). However, the fact that you sold it created a taxable event. And you guessed it - the IRS wants to know. Every time you sell a digital asset (Bitcoin, in this case) it has to be reported on your tax return. You’ll have a capital gain (or loss) for the difference in the cash value on the date you received it and the date you sold it. “I paid for my groceries with Bitcoin.  That’s not selling it - so why do I have to report that on my tax return?” In addition to buying your milk, eggs, and cheese you also “disposed of” your Bitcoin. This is considered exchanging it for something else of value…sort of like barter (trading one type of property for another). If you didn’t trade your Bitcoin for those groceries, you would have paid with the usual currencies - like cash, debit, or credit. Essentially, you did “sell” it and what you received in return was not cash, but rather ingredients for some amazing homemade meals. And, the IRS wants to know all about it! “Crypto is just something I play with on the weekends. It’s all just for fun. That doesn’t count, does it?” Hobbies are absolutely fun! What’s not fun is how you have to report your crypto play time on your tax return. Depending on how much you truly love playing the “crypto game”, it could result in hundreds or even thousands of separate “sales”. And yes, the IRS needs the details of every single one of them. The good news is that you may not have to enter them into your tax return one-by-one. If your crypto brokerage service allows it, TurboTax can import your transactions. Whether you’re dabbling in digital currency, receiving payments for products or services, or investing in your future, each situation is unique and the above taxing situations may differ from yours. For example, maybe you're into mining or received some airdrops. TurboTax has an amazing Cryptocurrency Info Center that will help you out.  Finally, inquiring digital-minded people may need to know even more!  If that’s you, check out the helpful articles below. Your Crypto Tax GuideCrypto Tax FormsHow do I determine the deductible value of a charitable contribution made in cryptocurrency?  

This sweepstake has ended Thank you so much to everyone that participated! We appreciate you sharing your experiences with our community. A winner will be randomly selected and contacted to claim their prize. ++++++++++++++++++   Crypto has had its ups and downs, but it looks like it’s here to stay. This month, we’re discussing cryptocurrency and giving our community members another chance to win a $100 gift card.    Dogecoin and Bitcoin and Ethereum, oh my! So many different types of crypto are available these days, but it can be challenging to know where to put your money and how it will affect your taxes. Whether you’re still trying to figure out what a “Doge” is or you got in on Bitcoin back when it was only a few dollars, we want to hear from you. Do you think crypto is the currency of the future? Why or why not? Share your thoughts below to be entered into a drawing for a $100 gift card.  A winner will be randomly selected from this thread on March 15, 2023.     If you have questions about how crypto can affect your taxes, please join us for a LIVE Q&A on  Wednesday, March 15th between 9:00am and 5:00pm Pacific Time to ask Tax and Financial Experts your questions and get advice about taxes and personal finance, for free! Learn more and RSVP here.                                                                                                                                                                                                                                                                                                                                +++++++++   We will be hosting The Future of Crypto sweepstake to give you, and others, the opportunity to share your thoughts. One lucky winner will be chosen at random to receive a $100 gift card.   WHAT: Sweepstakes for a $100 gift card WHEN: Entries will be accepted from March 2, 2023 through March 15, 2023 at 5:00 pm Pacific Time HOW: Enter by adding a comment to this post sharing your thoughts about crypto. If you are the winner, we will send you a private message. The winner will be selected at random on March 15, 2023

Is your head spinning and are your palms sweating just thinking about doing your taxes for the first time? It’s a daring undertaking for a first-timer! Be brave, you can do this and we’re here to help!You know the IRS is anxiously awaiting your year-end numbers, but you can rest assured knowing you’ve already made a smart decision. You came to the right place - TurboTax is not going to let you fail.The key to your successful tax-journey is to be prepared. Before trying anything new, you should start by doing a little research, gathering your “essentials” (income, expenses, financial documents), and organizing it all for easy access as needed.Maybe you didn’t earn very much money, or were told by someone else that you don’t need to file a tax return. In that case, you might be asking yourself if you really even need to file yours. Don’t assume the answer is no - instead make sure that’s the case or you may be subject to late filing or underpayment penalties and interest. The good news is that even the IRS is willing to help you out with that question and provides a handy Do I Need to File a Tax Return? tool.First, let’s cover the basics. You’ve probably heard terms such as deductions, write-offs, credits, capital gains/losses, and other tax-friendly words. You’ll learn more about those as you continue on your journey, but here’s some basic terminology to help you get started. Tax returns are essentially comprised of the following: Personal Data - Make sure it’s accurate and up-to-date. These are the usual suspects such as your name, address, birthdate, Social Security Number, dependents, etc. Income - Yes, you do have to include all of your income. Some types of income are taxable, some may not be…but it’s essential that all is entered and accounted for on your tax return. It includes income reported on formal tax forms like W-2s and 1099s. It also includes all income that may not be reported on official tax forms such as certain investments (including real estate and crypto), side-gigs, gambling winnings, hobbies, and barter. Deductions/Adjustments - These can reduce your taxable income, and your total taxes owed too. They include expenses such as qualifying charitable contributions, personal property taxes, mortgage interest and real estate taxes, and medical expenses. Pro Tip: Save your receipts! Credits - These are tax benefits that reduce your total taxes owed dollar-for-dollar!  Some of them may even be what’s called “refundable” which means you could get an even higher refund than the amount of taxes you actually paid in (or had withheld from your income). This is a pretty good deal if you qualify for them. TurboTax will automatically calculate them for you, based on your entries. They include credits such as the Child Tax Credit, Earned Income Credit, and Education Credits. Refund or Amount You Owe - This is your bottom line! If you paid in (through withholding or estimated payments) more taxes than the total taxes for your income (after all deductions and credits), you’ll get a refund! If you didn’t pay in enough to cover your tax liability, then you’ll have to pay the rest when you file your tax return. Ready to get started? Open up your TurboTax software and begin entering your Personal Data first. It’s so easy - just answer the questions and read the links on the screens to learn more! Based on your answers, TurboTax will determine the appropriate Filing Status (Single, Head of Household, Married Filing Jointly/Separately, or Qualifying Surviving Spouse). From there, you just follow the interview questions to enter your income and deductions, and you’re on the way to completing that first-time tax filer journey! Oh, and don’t worry about starting in a lower priced version of TurboTax - the software will prompt you if a different version is needed for your situation. Need a little help to make sure you’re on the right path? You have options and can get Expert advice your way! If you’re still a little shaky and not feeling confident, it’s okay. That’s why we have TurboTax Live Full Service. They can take it all off your hands and complete your taxes for you!  It’s good you prepared first though - they’ll need all those “essentials” you gathered together. Once you’re done with the federal (IRS) side of your taxes, you can move on to your state, if your state requires a tax return. That’s right, not all states have individual income taxes. And, if you moved during the year, you might have to file a tax return for more than one state. That’s it! Now, check everything over one last time and follow the instructions to file! If you’re getting a refund, you might want to check out Where’s My Refund: How to Get it Fast!. You have everything you need to complete your tax returns for the first time. Enjoy the adventure! Pro Tip: Save copies of everything! You need to keep copies of your tax returns (and documentation used to prepare them) for a minimum of three years past the due date. Most often, it’s recommended to save them for 5-7 years. You just never know if, or when, the IRS may need proof of a deduction or taxes paid. Below are a few more articles designed to help you on your tax filing journey: Credits and Deductions - Tax breaks for so many facets of life.Tax Preparation Checklist - Gather all you need to prepare your tax return(s).Multiple States - Where to File - What to do if you moved or earned income in more than one state.5 Tips for How to File Your Taxes for the First Time

We get it - that tax refund is your money! You need it, want it, and deserve it! The IRS has "borrowed" your money for long enough. But where is it, and how do you track it? Let’s start by breaking down the filing and refund process, in the simplest way possible. First up, you do your thing! You gather all your income/deduction documents and carefully prepare your tax returns. Or, you have a TurboTax Live Full Service Tax Expert prepare them for you. Your tax return looks good - and even better, you’re getting a refund! Woohoo! You finalize, verify the bank details or how your refund should be sent to you, and submit your tax return (likely by e-filing). Now, tech does its thing! And your return is quickly Accepted or Rejected. It’s your responsibility to keep an eye on your email, or check your TurboTax account, in case there is a rejection. Then correct it and resubmit. Common reasons for Rejected returns are typos in a Social Security Number, last name, or a dependent who was claimed by someone else. Success! Your tax return has been Accepted! But hold on a minute - don’t get too excited just yet. Being Accepted only means the IRS (or state taxing authority) has your return, is able to begin processing it, and it’s out of the hands of TurboTax. (Sorry, TurboTax can’t help much at this point.) Next up is tech…again. The IRS or state scans for missing W-2s, 1099s, and obvious red flags such as exorbitant deductions in relation to income. Hey, if you earn $50K per year but donate $100K to charity - that’s a red flag that may require a closer look - and a delay in processing. If all is good, your tax return will be processed and you should expect your refund (typically) within 21 days of Acceptance! That’s it! Those are the essential steps to receiving your refund as quickly as possible. Still, there may be some bumps or snags to cause delays along the way. Below are some common FAQs to help ease your mind and move things along more rapidly.   What if 21 days have passed and I don’t have my refund? This could be as simple as a delay from the IRS backlog.  But there could be a variety of other reasons why it’s taking a longer amount of time. It’s usually something simple that maybe was forgotten, such as an offset or a missing income item. Track your progress and watch for a “love letter” from the IRS. Or, it might mean you won the “random audit” lottery. Yes, it’s a thing! The IRS could have randomly selected your return for a closer look. In this case, you will receive a letter in the mail (yes, the regular paper mail) letting you know the details and the next steps. It’s frustrating, but don’t let it scare you. Most often, they simply want verification of an entry on your return. If you’ve kept your documents and receipts, this should be a fairly painless process of providing exactly what they need, and then waiting a bit longer. How do I fix a Rejected return?This is usually pretty simple. You log in to your TurboTax account, go to your return and select Fix it now or Revisit the section that applies to the reject code. You can go here to see some common reject codes and learn how to fix them step-by-step.  How do I track the progress?  This is the fun part! You can check the status directly through TurboTax. Once it’s been Accepted, you can also watch the progress right on the IRS or state taxing authority’s website.  They said they sent my refund last week but I don’t have it?Oh no! Let’s hope the bank info is correct or you didn't move...it's happened before. To head that off, don’t change your bank accounts until after your tax returns are processed and you receive your refund. If you moved (and are expecting a paper check) or need help due to incorrect bank information, you should contact the IRS directly. PRO TIP: Create an online account with the IRS. You can then access tax records, make payments, and do all sorts of fun tax-related things!  Here’s an important thing to know - once your return has been Accepted for processing by the IRS and/or state taxing authority, they are in control of what happens next. Keep an eye on your status and take action - so you can get your money as quickly as possible!

This sweepstake has ended Thank you so much to everyone that participated! We appreciate you sharing your experiences with our community. A winner will be randomly selected and contacted to claim their prize. ++++++++++++++++++   A friendly welcome to our new and returning community members!  We’re excited to share another sweepstake and another chance to win a $100 gift card with you. This month, we’re opening the discussion to anyone filing for the first time or remembers the first time they filed. We want you to share those new filer feelings- was it love? Nervousness? Excitement?   The first time you file, just like the first time you fall in love, can feel like a big step, but TurboTax has your back every step of the way. TurboTax is designed to help you file confidently and quell those first-time jitters.  If this is your first year filing, share what emotions you’re feeling about it. If you’re a seasoned TurboTax user, think back to the first time you filed and post below what feelings you experienced! Replying to this post with your “first time feeling” will enter you in a chance to win a $100 gift card. A winner will be randomly selected from this thread on February 22, 2023.      If you have questions about filing your taxes for the first time, please join us for a LIVE Q&A on Wednesday, February 22nd any time between 9:00 am and 5:00 pm Pacific Time to ask Tax and Financial Experts your questions and get advice about taxes and personal finance, for free! Learn more and RSVP here.                                                                                                                                                                                                                                                                                                                               +++++++++   We will be hosting the First Time Filing Feeling sweepstakes to give you, and others, the opportunity to share your experiences. One lucky winner will be chosen randomly to receive a $100 gift card.   WHAT: Sweepstakes for a $100 gift card WHEN: Entries will be accepted from February 8, 2023, through February 22, 2023, at 5:00 pm Pacific Time HOW: Enter by adding a comment to this post sharing any feelings you have about filing your taxes for the first time. If you are the winner, we will send you a private message. The winner will be selected at random on February 22, 2023.

This sweepstake has ended Thank you so much to everyone that participated! We appreciate you sharing your experiences with our community. A winner will be randomly selected and contacted to claim their prize. ++++++++++++++++++ Welcome everyone, new and returning!  We’re excited to share another sweepstakes and another chance to win a $100 gift card with you. This month, we’re discussing recent tax law changes.  There have been some changes in tax law the last few years and with each change we get a little better at navigating the world of taxes. This year we have some new tax codes to learn but with the help of TurboTax, our Community, and our Live Experts we can be reassured that learning these tax changes can be easier than ever. For the sweepstakes this month we are asking you to reply with what tax law changes might impact your taxes the most. Replying to this post with your experiences will enter you in a chance to win a $100 gift card. A winner will be randomly selected from this thread on January 25th, 2023.        If you have questions about how tax law changes can affect your 2022 taxes, please join us for a LIVE Q&A on Wednesday, January 25th any time between 9:00am and 5:00pm Pacific Time to ask our Tax Experts your questions and get advice about taxes and tax law changes, for free! Learn more and RSVP here.                                                                                                                                                                                                                                           +++++++++   We will be hosting the Tax Law Changes sweepstakes to give you, and others, the opportunity to share your experiences. One lucky winner will be chosen randomly to receive a $100 gift card.   WHAT: Sweepstakes for a $100 gift card WHEN: Entries will be accepted from January 12, 2023 through January 25, 2023 at 5:00 pm Pacific Time HOW: Enter by adding a comment to this post sharing any major life events you expect to affect your taxes. If you are the winner, we will send you a private message. The winner will be selected at random on January 26th, 2022

You love TurboTax and your friends will too! When you share that love, it’s a “win-win” type of situation - you get a referral fee, and they get a discount!  Here’s how it works: You refer your friends, family members, co-workers, your favorite Insta friends, or even the guy next door by sharing your unique link and you make money! You receive a $25 Gift Card for each person who makes a qualifying purchase with TurboTax; and they receive up to a 20% discount on that purchase! Of course you want to refer everyone you know, but just be aware there is a cap of $500 in Gift Cards during the program year. Check out this great article called Learn about the TurboTax Referral Program to find out how that works and all the other friendly details! Sharing truly is caring when you share your TurboTax love! Still have questions? Take a look at the Terms and Conditions - you’ll find the answer there!

It seems the favorite way to get tax advice is to ask your friends. Hey, a Tweet or an Insta post works too!  Right?  If social media isn’t your thing, you can search it up, watch the latest news, read a random blog, or try to interpret the nearly 7,000 pages of complex tax code.  (Which, by the way, is constantly changing.) The good news is that you’ll find an answer you like -  one that makes sense to you.  So, you finish up your taxes and get a massive refund. That was easy!   Sometime later the IRS decides they want to be pen pals (remember pen pals) and you get a lovely letter (yes, in the actual mail) questioning your tax return.  Now what?  At this point you’re probably wishing you didn’t “phone a friend” when you prepared your taxes. You’re wishing you had someone with real tax expertise who helped…someone who wouldn’t bankrupt you to help!   Problem solved!  The next time you need your taxes done, get them done right.  Take advantage of the expert help TurboTax has to offer.  And, do we have options!   In our vast and wildly searched TurboTax Community, not only will you see Credentialed Tax Experts like EAs and CPAs, but you’ll also see our Champions (incredibly knowledgeable tax expert volunteers) ready to help!  Ask a question, get an answer! If you prefer to “phone it in”, we have our TurboTax Live Tax Experts available for phone and video calls.  With Live, you can still prepare your own taxes; however, Credentialed Tax Experts are there to not only answer your unique and complex tax questions, but also provide you with a final review. Can it get any better than that?! Yes, it can! With TurboTax you can even have a Credentialed Tax Expert prepare your tax returns for you. If you prefer to avoid preparing your own taxes at all costs, then Live Full Service is what you need. That’s right, you upload your docs, stay in communication, and your Live Full Service Tax Expert does the heavy lifting! (Trust me, that Tax Code is very “heavy lifting''!) Whatever method is your preferred way to get help preparing your taxes, we’ve got the Experts!

This sweepstake has ended Thank you so much to everyone that participated! We appreciate you sharing your experiences with our community. A winner will be randomly selected and contacted to claim their prize. ++++++++++++++++++   A friendly welcome to our new and returning community members!  We’re excited to share another sweepstakes and another chance to win a $100 gift card with you. This month, we’re discussing major life events and how they impact your taxes.  There are few constants in this life, but you can always count on change being one of them. As we grow and age, our lives expand and contract- homes are purchased, babies are born, children go off to college, marriages dissolve. All of these major life events can impact your taxes. We’re asking our community members to share any life events they had this year that they expect will affect their taxes. Replying to this post with your personal life events will enter you in a chance to win a $100 gift card. A winner will be randomly selected from this thread on November 16, 2022.        If you have questions about how major life events can affect your taxes, please check out this blog post and join us for a LIVE Q&A on  Wednesday, November 16th any time between 9:00am and 5:00pm Pacific Time to ask Tax and Financial Experts  your questions and get advice about taxes and personal finance, for free! Learn more and RSVP here.                                                                                                                                                                                                                                                                                                                                +++++++++   We will be hosting the Major Life Events sweepstakes to give you, and others, the opportunity to share your experiences. One lucky winner will be chosen randomly to receive a $100 gift card.   WHAT: Sweepstakes for a $100 gift card WHEN: Entries will be accepted from November 9, 2022 through November 16, 2022 at 5:00 pm Pacific Time HOW: Enter by adding a comment to this post sharing any major life events you expect to affect your taxes. If you are the winner, we will send you a private message. The winner will be selected at random on November 16, 2022

Have you ever heard someone say “We’re having a baby - we get a tax deduction!” or “I hope the baby is born by December 31st, so we can claim them on our taxes!”?  The excitement is real when it comes to those precious little bundles of joy and taxes!   Dependents can give you some fantastic tax credits and deductions.  Which ones and how much is where the confusion comes into play. Let’s see if we can clarify some of the “rules”, maximize your refund, and help you pay less to the IRS! Often there is a misunderstanding between a tax credit and a deduction.  Tax credits are typically better because they can reduce your tax liability dollar-for-dollar, and some are even refundable (you get the dollars added to your refund even if you don’t have a tax liability).  A tax deduction simply reduces your taxable income so you pay less overall tax (you save the percentage of tax for that deduction amount).  Remember, this is merely an overview and TurboTax has a simple step-by-step interface that asks you all the right questions. We want you to get every possible deduction and credit you’re eligible to receive.  You’ve got this, and we’ve got you! Here we go!   Child Tax Credit (CTC) The Child Tax Credit is the first credit you think of when you have a child!  For 2023, the credit is capped at $2,000, with $1,600 of it potentially being refundable.  Unfortunately, the generous child tax credits received in 2021 have not been extended into 2022 and 2023. If you are filing jointly, you will qualify for the full credit as long as your AGI (Adjusted Gross Income)  is less than $400,000.  (Single and Head of Household filers must have AGI of less than $200,000 to receive the full credit.)  If your income is above those limits, the credit will be gradually reduced down to $0.To claim children for the Child Tax Credit, they must meet the following criteria: Be your biological or adopted child, step-child, eligible foster child, younger sibling (including step- or half- siblings), or their descendant. Be under age 17 on December 31st of the tax year for which you are claiming the credit (or permanently disabled). Not have provided more than half of their own financial support during the tax year. Must have lived with you for more than half of the tax year (with exceptions). Must be claimed as a dependent on your tax return. Can’t file joint tax return for the year (exception if only filing to claim a refund of taxes paid or withheld). Be a U.S. citizen, U.S. national, or U.S. resident alien. Have a Social Security Number issued by the Social Security Administration. Other Dependent Tax Credit  Maybe you don’t have children, they're older than 17, or you support a friend or relative. No problem! You could still get a tax credit for your other dependents.  This one is up to a $500 dollar-for-dollar reduction of your tax bill or in the form of an increased refund.   This credit has the same income levels as the Child Tax Credit above.  Child and Dependent Care Credit Okay, you have to work but how are you going to pay for the high cost of childcare?   First, check with your employer.  Many employers offer a special Dependent Care FSA (Flexible Spending Account) in which the employer can withhold pre-tax dollars (or contribute on your behalf) specifically targeted toward dependent care expenses. Do you have more expenses than money in your Dependent Care FSA?  The good news is that you can have both the Dependent Care FSA and take advantage of the Child and Dependent Care Credit.  However, you can’t double-dip and use the same expenses for each. Now, let’s take a peek at that Child and Dependent Care Credit. Remember why we love tax credits - they are a dollar-for-dollar reduction to your tax liability.   If you incur child care expenses while you work (or are looking for work) and you have a dependent child under the age of 13 (no age limit if disabled) you can qualify for this tax credit. Eligible expenses could be payments for private care, childcare facilities, nursery school and even day camps or after-school programs! For the 2023 tax year: The expense limit is $3,000 for one qualifying person and $6,000 for more than one qualifying person The percentage used to calculate the credit amount ranges from 20% to 35% and is based on your income Figuring out how much your credit will be can get a little tricky. But, you guessed it, TurboTax has got you covered!  Earned Income Tax Credit (EITC) This is a good one!  It’s a fully refundable credit which means you could get more of a refund than the taxes you had withheld from your income.  If your income is on the lower end, and you have children, you’ve probably already heard of the  Earned Income Tax Credit (EITC). How much of this credit you’re entitled to, if any, depends on your age, income, filing status, and how many children you have (if any).   For 2023, the credit ranges from $600 to $7,430 (sliding scale) based on income and filing status.  This potentially means a lot of dollars in your bank account! Here are a few caveats: You must have “earned” income from a job or self-employment You cannot have investment income of more than $11,000 You must be a U.S. Citizen or Resident Alien the entire tax year You must have paid more than half the cost to keep up a home during the tax year Check out this article 5 Facts About the Earned Income Tax Credit to learn more. Education Benefits Are you sending your child off to college?  It's a bittersweet time in life and the cost for that degree can be…shocking! The IRS values education and is trying to help you out a bit on this one. There are two main Education Tax benefits - the American Opportunity Tax Credit and the Lifetime Learning Credit.  Both of these can reduce your tax liability dollar-for-dollar.  The best part is that the American Opportunity Credit has a refundable portion (up to 40% of the credit).  That means if your credit is more than your tax liability, the difference goes into your pocket!  The American Opportunity tax credit This credit is worth up to $2,500.  How it works is that the first $2,000 of qualifying expenses is allowed, then 25% of the next $2,000 totaling $2,500 per student. To qualify for the American Opportunity tax credit the student must be in the first four years of college and your income must not exceed $160,000 if you’re Married Filing Joint ($80,000 Single) to get the maximum benefit.  Income above those amounts will cause the credit to phase out. The Lifetime Learning credit If you don’t qualify for the American Opportunity Credit, no problem!  The Lifetime Learning Credit might be just the thing for you!  The maximum credit you can receive is $2,000.  It’s calculated using 20% of eligible expenses up to the maximum of $10,000.  The not so great part of that is the limit of $2,000 is per tax return, not per student.  The good part about the Lifetime Learning credit is that you don’t have to be in a four-year program to benefit, or even working on a degree. Most higher-level educational courses qualify. The income limit phaseouts are the same as the American Opportunity Credit, as are the qualified expenses. A couple more things to remember: 1) you can’t double-dip or claim both the American Opportunity Credit and the Lifetime Learning credit in the same year, for the same person 2) if you are claiming the credit for yourself, you can’t be claimed as a dependent on someone else’s return, such as a parent.  Bonus Tip: While your children are young, it’s a great idea to contribute into a 529 College Savings Plan or Coverdell Education Savings Account.  When they go off to college, you can take tax-free distributions to cover qualified education expenses. Also, some states even allow a deduction for the contributions you make. Adoption Credit  Congratulations and thank you for adopting! The IRS wants to help you celebrate the joy of your new family member by reducing your tax liability! The Adoption Tax Credit is a pretty large dollar amount of up to $15,950 per child in 2023 and with that, it has many “rules”. So, I’ll keep this relatively brief and link to where you can learn more details.   The Adoption Credit is a non-refundable credit.  What this means is that it is dollar-for-dollar to reduce tax liability, but you don’t get the excess back as an additional refund if your total tax liability is less than the credit amount.  Don’t worry, the IRS is the gift that keeps on giving where this credit is concerned!  Any unused credit can carry forward for up to five years.   There’s more good news!  The expenses that qualify can be incurred in preparation for adopting, whether or not that adoption finalizes.  Don’t get too carried away though, expenses for remodeling or decorating your child’s new bedroom don’t count. However, expenses such as application fees and home studies do qualify! The rules here can be complex and the credit depends on when the expenses were paid, whether it’s domestic (U.S. or its possessions) or foreign, and when the adoption is finalized (if it finalizes). Make sure to keep good records describing your adoption expenses, keep the receipts, and of course the dates - TurboTax will do the rest! We’ve got you covered!  The tax benefits above are for the federal side of things - the IRS.  While many states follow federal laws, some state tax benefits for dependents may differ.   But, rest assured, TurboTax will easily help you get all you’re eligible for on your state taxes too!As with all things tax, the “rules” continue to change and it can be overwhelming.  But TurboTax will be right there, inspiring confidence and even holding your hand if needed!  If you panic and run for the door when the word “tax” is mentioned, we’ll take care of you with that too! Our expert EAs and CPAs can prepare your taxes for you - from start to finish. TurboTax Live Full-Service Experts are ready to help! Want more details?  Check out the articles below. Who can I claim as my dependent?Rules for Claiming a Dependent on Your Tax ReturnThe Dirty Dozen: 12 Tricky Tax Dependent DilemmasHow do I report and pay the Kiddie Tax on my return?The Ins and Outs of the Child and Dependent Care Credit  

This sweepstakes has ended Thank you so much to everyone that participated! We appreciate you sharing your experiences with our community. A winner will be randomly selected and contacted to claim their prize. ++++++++++++++++++     Greetings to our new and returning community members!  We’re excited to share another sweepstakes and a chance to win a $100 gift card with you. This month, we’re spotlighting Dependents and the Child Tax Credit.  Did you know claiming a dependent may save you money and even increase your refund come tax time? You can claim a child, relative, friend, fiancé and others as long as they meet certain requirements. Depending on your household situation, this could greatly impact your taxes. This is where we’d like to hear from you. Did you recently learn you were able to claim someone who isn’t your child? Did you just have a baby and this year will be the first time you can claim a dependent? Or maybe you’ve claimed the credit for years but this year, your dependents have flown the nest and you will no longer qualify for the dependent and child tax credits. Are you planning for how this will affect your taxes? Please tell us below! We want to hear from our community about how having dependents impacts you. If you share, you could win a $100 gift card!          Reply to this post with how having (or not having) dependents impacts you and your taxes. On October 26, 2022, a winner will be randomly selected from this thread.    If you have questions about Dependents and the Child Tax Credit, please check out this blog post and join us for a LIVE Q&A on Wednesday, October 26th any time between 9:00am and 5:00pm Pacific Time to ask Tax and Financial Experts  your questions and get advice about taxes and personal finance, for free! Learn more and RSVP here.                                                                                                                                                                                                                                                                                                                +++++++++  We will be hosting the Dependents and the Child Tax Credit sweepstakes to give you, and others, the opportunity to share your experiences. One lucky winner will be chosen randomly to receive a $100 gift card.   WHAT: Sweepstakes for a $100 gift card WHEN: Entries will be accepted from October 19, 2022 through October 26, 2022 at 5:00 pm Pacific Time HOW: Enter by adding a comment to this post telling us how dependents impact you and your taxes. If you are the winner, we will send you a private message. The winner will be selected at random on October 26, 2022