Once you’ve answered every question and provided all of the requested information, TurboTax will review your return and let you know if there are any errors or missing information. According to the Internal Revenue Service (IRS), the standard deduction for the 2020 tax year is $12,400 for singles, $18,650 for heads of household, and $24,800 for married couples. You might find that your deductions aren’t substantial enough to itemize, which has become fairly common since the Tax Cuts and Jobs Act (TCJA) raised the standard deduction. You’ll be asked to provide the information for medical expenses, mortgage interest paid, state and local taxes, and charitable deductions, if you have any. Next, you come to the deductions portion. With that capability, entering stock trades becomes a breeze. But it’s also possible to import the capital transactions schedule from your online brokerage account. It gets a little more complicated when you have to enter stock transactions. You’ll also be asked to provide information from 1099s, like bank interest or dividends earned. This means you can upload the tax forms directly to the TurboTax platform, and it gleans some of your information without any work on your part. However, W2s from many large employers are available for direct import, making the task even easier. From there, the questions become more substantial, and most are fill-in-the-blank type questions.įor example, you’ll be asked to fill in information directly from your W2. For example, the process begins with some basic information about your employment and family size.

The questions that TurboTax asks are very basic and easy to answer, and they’re also grouped around general tax topics.

Let’s do a walk-through of TurboTax so you know what to expect, and which documents you’ll need before you begin.

Once you purchase the software and start the process, you’ll mostly follow a simple question and answer format.Įven if you don’t know anything about income tax preparation, this sequence can easily guide you through the process.

One major benefit of TurboTax is its user-friendly and intuitive user experience.

Turbotax deluxe with state on sale