Turbotax Free Edition
Piperion Giles
I started working as a freelancer in 2019 (though I didn't work during the first two months of that year). I don't make much, so I qualify for the Freedom Edition of Turbotax. I don't mean the Free edition, which is not part of the IRS's Free File program, but the Freedom, which is. I chose "I don't know" for the edition because it only showed the "free" one.
My understanding is that I may need a Schedule C,or C-EZ (I don't have 1099s since I do tiny projects for lots of random clients and mostly get paid in cash). As I've filled out my info into the TurboTax guided form, there's been no mention of Schedule C. I've reached the end - if I click on the "finished" button, will the final documents automatically include a Schedule C because I'm self-employed? Or is it something I somehow have to enter on my own? I'm confused and scared I won't get a Schedule C.
Free File absolutely does support Schedule C. In order to activate it you have to click "yes i want to itemize" when you see that question. IN FACT for self employed folks you need to click that same box EVEN IF you are not itemizing, otherwise it will call it "other income" and not tax it correctly. You want the type of income to say the name you give it and not say "other." Doing a 1099 with a schedule C is tricky in Free File. Just take your time with it, don't be afraid to clear and start over and you'll get it. it is definitely "buggy." Turbo Tax would rather you go over to the paid side and pay for the Self Employment version.
In Free File after you add income you will see a screen with add expenses. Free File can handle self-employment tax returns. You may be experiencing browser problems. Use the Chrome browser and clear all browser data, then sign into TurboTax again.
Apparently, TT thinks it's too much of a hassle to scrap everything even if you haven't paid them or even filed. This is a way to bind you so they can still get their money even if the tax version you used to figure out your taxes is no longer a benefit to you for the tax year you're filing.
With that being said, TT automatically upgrades you to their lowest edition (TT Deluxe I believe) if you don't qualify for the Federal/State Free edition. To get the free edition you have to have an AGI of $36k or lower, have qualified for the EIC, or are a veteran/active duty/military personnel.
Unfortunately, once you have submitted payment, deducted the TurboTax fee from your refund, or registered, you wouldn't be able to clear and start over. The only other option is to review your fees and try to reduce any fees that you have. Please follow the instructions below.
I agree that this is BS. I did my entire return in the free version and am doing the standard deduction. So, education deductions essentially don't matter, but apparently entering education expenses requires that you pay for the deluxe edition. So, even though nothing was actually done in the deluxe edition I have to start over completely in order to not pay my entire tax refund to turbo tax. It's total BS!!!
This does not work. I had to use Deluxe last year and now I cannot downgrade back to Free Basic even though I meet all of the requirements. Clear and Start Over does not clear my information and the product defaults to Deluxe.
If we detect that your tax situation requires expanded coverage, we'll prompt you to upgrade to a version that supports the forms you need so we can maximize your tax deductions and ensure you file an accurate return. For more details on this, please see the Help Article here.
I am using the TurboTax free edition due to my low income. I have 2 K-1's that I need to enter...they do not produce much income. If I answer all the questions as required to enter the K-1's, will the filing still be free at the end when I attempt to file the return? I ask since the K-1's require more forms than typical.
I have already entered one of the K-1's and did a federal review and all looked good and it said that the return was prepared for free. Does that mean that it will charge me later when I actually file the return?
In the K-1 section of TurboTax, on the screen Did you receive any Schedules K-1? after you click the Yes box you should see a screen that you need to update to TurboTax Premier. [Screenshot #2]
I just bought a duplex that I was previously renting. We live in about 70 percent of the house and the tenants the other 30. I started renting it out immediately in June after putting a bunch of money into the other side. I pay all the utilities and what not. I love using Turbotax because they do the work for me. So my question is...... Does turbotax have something I could use so that I am able to still do my own taxes???? Thanks Dustin Hachfeld
If you are using the TurboTax desktop CD/Download editions then any of the desktop editions can be used. However it is recommended that you use the Premier edition as it gives more help and guidance for rental properties.
I'm in the free version, and accidentally registered. I don't qualify for free filing and it won't let me clear and start over because it's registered. Since it's the free edition THERE IS NO UPGRADE option. Please help!
Who Pays? is the only distributional analysis of tax systems in all 50 states and the District of Columbia. This comprehensive 7th edition of the report assesses the progressivity and regressivity of state tax systems by measuring effective state and local tax rates paid by all income groups.[1] No two state tax systems are the same; this report provides detailed analyses of the features of every state tax code. It includes state-by-state profiles that provide baseline data to help lawmakers and the public understand how current tax policies affect taxpayers at all income levels.
State and local tax policies play an important role in addressing or perpetuating inequality. Most state tax systems are regressive, meaning lower-income people are taxed at higher rates than top-earning taxpayers. Further, those among the top 5 percent of households pay a smaller share of all state and local taxes than their share of all income, while the bottom 95 percent pay more.
This study provides important context for those interested in state and local tax policies and the role they play in funding vital programs and services and providing economic security for all families and communities. It examines whether state tax systems are regressive or progressive by providing a thorough analysis of how state and local tax policies affect taxpayers across the income spectrum and discusses ways in which certain tax policies deepen racial disparities in income and wealth. Over 99 percent of all state and local taxes, measured by their revenue contribution, are included in this study.
Our analysis employs similar analytical techniques, and reaches broadly similar conclusions, to official incidence studies performed by state agencies in Minnesota, Texas, Connecticut, and Maine. Most states, however, do not conduct these kinds of comprehensive studies on a regular basis, in part because of the substantial amount of time and expertise it requires to do this work. We have devoted many thousands of hours of staff time to producing this 7th edition of Who Pays?, and we build on the work of prior ITEP analysts who themselves spent many hours thinking through and building earlier versions of the models employed in this study.
Nationally, the average state levies an effective state and local tax rate of 11.4 percent for its lowest-income 20 percent of residents; 10.5 percent for the middle 20 percent; and 7.2 percent for the top 1 percent (see Figure 1). This means the top 1 percent are contributing 37 percent less of their incomes toward funding state and local services in their states than the poorest families. Results vary widely by state. For detail on the impact in individual states, see Appendix G for the state-by-state Who Pays? summaries.
If high-income taxpayers are left with a higher percentage of their pre-tax income to spend on their day-to-day living and to save for the future than low- and middle-income taxpayers, the tax system is regressive and receives a negative Tax Inequality Index value. This indicates that the income inequality that existed before the levying of state and local taxes has been made worse by those taxes.
On the other hand, states with progressive tax structures have positive Tax Inequality Index values. This means that, after taking state and local taxes into account, incomes are no less equal than they were before taxes and have, in fact, been made more equal across at least some groups. Tax systems in those states did not worsen income inequality overall though, in practice, each of the states with positive Index values in this study does still have moderately regressive effects through portions of the income scale. Vermont, for example, taxes its top 5 percent of earners at slightly lower rates than upper-middle income families yet still manages to receive a positive Index value overall because its tax system is progressive through the bottom 95 percent of the income scale and its tax rates at the very top are not dramatically lower than those charged to other groups.
A full description of how the Index is calculated is provided in Appendix H. The Index works by measuring differences in tax impacts at various points across the income scale and distilling those differences into one headline number.
What characteristics do states with particularly regressive tax systems have in common? Highly regressive tax codes can be found in all regions of the country and in states with divergent political leadership. That being said, there are some clear tax policy patterns across these 10 states. Several important factors stand out:
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