What is Turbo Tax?


TurboTax is an American tax preparation software package developed by Intuit, Inc. The package was initially  developed by Chipsoft in 1980s. In 1993 Intuit took over the Chipsoft. Turbo Tax is the most popular Income Tax preparation & e filing software in United States.

Turbo tax software comes with different versions like Turbo Tax Deluxe, Turbo Tax Premier etc. The Turbo Tax software can be used to prepare both Federal & State Income Tax Returns. The good thing about this software is that it is always updated once the IRS completes the revisions to the Income Tax Forms. This software is widely used in the United States due to its step by step guidance to the tax payer & user friendly interface. Turbo Tax Deluxe is designed to handle most people’s tax needs.

The Turbo tax software is useful especially to people having no accounting or taxation background to file their Income Tax Returns simply by answering simple questions. The software interface is designed to ask questions to user & the user has to simply answer those questions. In case the user is not very much sure about the answer the 'Help section' provides detailed but still simplistic explanation to the user queries.

The Turbo Tax software comes with in built error detection module which automatically checks the Income Tax return for common errors which an user may commit while preparing the Income Tax Return.
In year 2009 the Turbo Tax came into news when Timothy F. Geithner, to be the United States Secretary of Treasury confirms at Senate confirmation hearing that he was using Turbo Tax software for 4 years & he had committed a mistake in calculating his Self Employment taxes. He accepted that that was his error & Turbo Tax software is not responsible for this. The error was discovered in IRS Audit & Geithner had to pay around $40K as taxes.

In a communication released by Intuit it said that the calculation of the amount of taxes payable is arrived on the basis of the information as provided by the user.

The Deluxe version of Turbo Tax is designed for filing Federal Returns. There is separate charge for filing State Returns. E-filing of Income Tax Return is free up to five people. The Online service can only be used by one person. If someone purchases the software CD or download it, filing of one state tax forms are provided free of cost. In online service one has to fill in all the information about taxes and one only have to pay when he/she  wish  to print or E file the tax Return. Turbo Tax has a free edition for those with simple filing needs, as well as a Premier, Home & Business and Business version for those with more tax complexities . 

Turbo Tax Estimated Taxes is an online estimated income tax calculating and filing service. This is useful for people who file quarterly estimated payments. The software provides payment calculation and allows e-filing of estimated tax statements. The software comes with deadline reminder which is very useful to tax payers.

Turbo Tax Deluxe is very user friendly & arranged in a very useful manner. 

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