Tax Knowledge You Should Know
Tax season conjures up many questions along with lots of confusion that keeps most American taxpayers quite confused. Our overly complex tax code has the ability to raise stress levels on tax filers that tend to loose their patience when trying to figure out how tax laws apply to them, and their tax returns.
Lets face it, nobody, I mean nobody can fully grasp a full understanding of what our politicians have mashed together through special interest influence in order to create a tax code of flat out unfair mumbo-jumbo confusion.
TurboTax Tax Knowledge Support to the Rescue!
Fortunately, TurboTax, a top rated choice for tax preparation software is programmed to take all that anxiety out of preparing your tax return by walking each taxpayer through the process as it molds itself to their needs.
Each and everyone of us lives a life of unique circumstances as we evolve into our personal lifestyle of living and investing for the future. This in turn means we all have different needs and requirements for tax preparation.
Fact is, keeping Uncle Sam and the IRS happy means you don't have to worry about the hair standing up on your back, and possible penalties and interest charges that could send your financial comfort into turmoil.
Getting In Tune With Tax Season Responsibilities
A topical survey of taxpayer personal finance knowledge done by Post University revealed plenty of confusion related to U.S. income tax filing.
In this survey, simple tax questions were asked of American tax filers that related to college costs, health care, personal finance, and retirement savings. The finding revealed the general lack of understanding our citizens have of the tax code, and how it applies to them.
This in turn sets a platform for multiple interpretations based on how each person deciphers them.
TurboTax Addresses Survey Results Showing Tax Code Confusion And Tax Preparation Literacy
With a plethora of inaccurate tax code information being posted on social media venues like blogs, YouTube, Twitter, and more, most tax payers are subject to opinions that do more damage to tax code understanding.
5 Important Tax Season Survey Topics Of Concern
- Accounting Fundamentals: With financial literacy and knowledge being an important education criteria, the complexity of today's tax code tends to push consumer attitudes into the I-can't-do-it mode. More often these tax filers are taking the just hire an accountant approach to getting their taxes done. This attitude detracts from the importance of understanding the tax benefit requirements we need to comply to throughout the year to qualify for tax savings.
- Interpreting The U.S. Tax Code: Understanding tax deductions when the tax code is in anything but plain English, lends itself to confusion right off the bat. The average person has a hard time interpreting tax deduction requirements and how to qualify. Often exceptions exist for qualification making tax deductions even more confusing. If you don't properly comply, you will most likely overpay your income taxes due to missed tax deductions. All this can be avoided with TurboTax income tax preparation software and guidance.
- Year Round Financial Income Tax Planning: TurboTax does a good job of adding the education element to their tax software. By being responsive to user needs, TurboTax customizes the interview process to help each tax return preparer discover tax benefits that apply to their tax filing situation. Turbo Tax software walks each taxpayer through a question and answer process designed to increase tax knowledge awareness, and help taxpayers prepare their tax returns effectively.
- TurboTax Supports E-filing, The Safest Way To File: Mail fraud, lost mail, making a trip to the post office, all this is unnecessary these days. Tax returns filed using the IRS efile system are encrypted before being filed electronically. This prevents the information from being assessed should the efile packet get hacked. TurboTax security is at an all time high to prevent the loss of personal information.
- United States Tax Code Fairness and Political
Influence: The U.S. federal tax code contains over 6,000
Annual changes to the tax code escalates complexity even
as politicians tout tax code simplification.
Americans spend billions of hours trying to understand and prepare their tax returns every year. Nearly one in every three Americans procrastinates over this task as they wait until the final days to submit their tax return to the IRS.
Whether you file early or late, the benefits are more related to whether you are paying more taxes, or getting a refund. Those who must pay more taxes will benefit more by keeping their money in the bank as long as possible and then file by the April 15th deadline.
Those who are expecting a refund, may as well file as early as possible to get their refund back asap and start earning interest on it. Overall, it is best to make adjustments to your paycheck withholding so that you come out as close to even as possible with Uncle Sam at the end of the year.