What Is Turbotax Audit Defense?
Audit Defense of TurboTax
People who use the tax preparation service, like to have simpler tax returns, which are less likely to be audited by the IRS. If you run a large business or have a complicated investment portfolio, you should probably have an accountant or tax attorney help you file your taxes. Taxpayers who just file a few forms and claim the standard deduction are not likely to be audited.
Even if you are audited, it will probably be a math or error issue. If you have concerns about the accuracy of your returns or the IRS agreeing with your deductions, you should consider hiring an Enrolled agent, CPA, or tax attorney. The audit defense of TurboTax is not bad.
A Comparison of Auditing Services
The amount of help you get if you're audited is the biggest difference between the two add-on services.
TurboTax W-2
It can handle both business income and expenses on a Schedule C, and it also works for the home office deduction. If you have a partnership with TurboTax, you can automatically import W-2 information from your employer, but you can also take a picture of your W-2 and send it to the IRS. You can import certain forms, and the Self-Employed version also allows you to import income and expenses from Square, and other companies.
The release of the state and federal software
The state software is usually released in January to February, while the federal software is usually released late in the year. The process is similar for states that collect income taxes.
The IRS Can Pay Back
The IRS can audit you for a variety of reasons. It can be as simple as mistyping a number or as complex as checking on a claim you made on your tax return. You can earn cash back at some of your favorite stores with the online shopping portal, RebatesMe.
You can get a sign up bonus when you earn your first $10 in rewards. You can redeem your rewards for cash or gift cards. Jim received his masters degree in business administration from the University of Baltimore and his bachelor's degree in computer science and economics from Carnegie Mellon University.
A Field Audit Example of TurboTax
An example of a field audit is when the IRS agent comes to your home to see if you actually have a space set aside to use exclusively as your home office as you claimed. If your return is selected for examination under the TCMP program, then you will not be represented by TurboTax, even if it is selected for audit by the IRS. You get what you pay for.
If you don't have any other legal plan to cover this, I would suggest getting the audit protection from the TurboTax. It will cost you hundreds of dollars per hour to hire a professional to represent you. It's the nature of insurance that there are slim chances.
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