Most taxpayers already know about Turbo Tax, but in case you have not, then you need to find a way to learn more about the software as soon as possible. The free version of the software will save you a lot of money in accounting fees. It will help you calculate how much you are required to pay as well as the tax refund owed to you by the IRS.
The main disadvantage of hiring a tax accountant to do your taxes is that you will be forced to pay a lot of money for the service. The worst thing about it is that these professionals never give a quote in advance; they complete the work then quote an obscene amount.
There are many other reasons why you should choose TurboTax free edition. First and foremost, you will never have to worry about finding a professional to do your taxes for you. Secondly, the software enables you to file accurate returns even when your tax situation is somewhat complicated, and you can do that from the comfort of your own home. If you need a more sophisticated version for your business, you can easily upgrade your software, but the free version is absolutely fine for the vast majority of taxpayers. With all these offerings, it is easy to see why Turbo Tax is an industry leader.
You would have been given a refund had you filed your 2011 tax return, but you never did. The IRS is holding onto $1 billion in unclaimed funds that will become the property of the federal government if tax filers don’t claim the funds before the end of the tax filing period. Over 1 million houses failed to file and are owed the money.
Tax payers have three years to file a return and claim funds that they are owed. The people that do not normally file when owed tax refunds are part-time workers or students who do not make much money and therefore feel they will not be getting a refund. But they pay more into the system than is required and therefore would have gotten a refund had they filed.
The Earned Income Tax Credit (EITC) is one big area of refunds that are not filed. These are refundable tax credits and therefore are given to filers that have not paid much into the system but have earned some income. In 2011 the EITC was as high as $5,700 if your family size was large enough. There have been stories about illegal immigrants gaining the right to file 3 years of returns to obtain three years of EITC. Those numbers are not yet included in this report by the IRS.