Tax laws and regulations constantly evolve, impacting tax preparation and compliance. TurboTax stays up-to-date with these changes, ensuring accurate and secure tax filing experiences. Recent TurboTax Tax Law Changes:
Tax Cuts and Jobs Act (TCJA): Modified deductions, tax rates, and credits.
CARES Act: Provided COVID-19 relief, including stimulus payments.
American Rescue Plan Act: Expanded child tax credit and education credits.
Inflation Reduction Act: Introduced clean energy credits and deductions.
Inflation Adjustments: The IRS has made inflation adjustments to various tax brackets, deductions, and credits. This means you might see changes in your taxable income and potential deductions.
Increased Standard Deduction: The standard deduction has increased, which could lower your taxable income and potentially reduce your tax liability.
Changes to Tax Credits: Some tax credits, such as the Earned Income Tax Credit (EITC) and Child Tax Credit, have been updated with new income limits and phase-out ranges.
New Tax Provisions: New tax provisions have been introduced, including changes to retirement account contributions and deductions for certain business expenses.
Collect all necessary documents, including W-2s, 1099s, receipts for deductions, and any other relevant financial information.
Decide whether you want to file online using tax software like TurboTax, use a tax professional, or file directly with the IRS through their new Direct File program.
Make sure your tax software is up-to-date with the latest tax laws and regulations for 2025.
Input your financial data accurately into your chosen filing method. TurboTax and other software will guide you through this process.
Double-check your return for any errors or missed deductions. TurboTax offers a review feature to help catch mistakes.
Submit your tax return electronically for faster processing. The IRS Direct File program will be available in 24 states, offering a free, online option for eligible taxpayers.
If you’re expecting a refund, track its status using the IRS’s “Where’s My Refund?” tool.