Ready to conquer your taxes? If you're looking to start a new tax return on TurboTax, you've come to the right place! Whether it's your first time or you're a seasoned filer, TurboTax aims to make the process as smooth as possible. Let's get started on your journey to a stress-free tax season.
Step 1: Get Prepared and Gather Your Documents
Before you even log into TurboTax, the most crucial first step is to get organized. Think of it like preparing for a big adventure – you wouldn't set out without your map and supplies, right? Your tax documents are your essential tools!
What do you need? This is a comprehensive list, so don't worry if you don't have everything.
Personal Information:
Social Security Numbers (SSN) or Individual Taxpayer Identification Numbers (ITIN) for yourself, your spouse, and all dependents.
Dates of birth for everyone on your return.
Your current address.
Your bank account and routing numbers for direct deposit of your refund (highly recommended for the fastest refund).
Income Documents:
W-2 forms from your employer(s).
1099 forms for various types of income:
1099-INT for interest income (savings accounts, CDs).
1099-DIV for dividend income (investments).
1099-B for proceeds from broker and barter exchange transactions (stocks, bonds, cryptocurrency sales).
1099-NEC for non-employee compensation (freelance, gig work).
1099-MISC for miscellaneous income (rents, royalties, other income).
1099-R for distributions from pensions, annuities, retirement, or profit-sharing plans.
SSA-1099 for Social Security benefits.
Records of self-employment income and expenses (if you're a freelancer, contractor, or small business owner).
Rental income and expense records (if you own rental property).
K-1 forms from partnerships, S corporations, or trusts.
Gambling winnings statements (Form W2-G).
Unemployment compensation statements (Form 1099-G).
Deductions and Credits Documents:
1098-E for student loan interest paid.
1098-T for tuition paid (education expenses).
Childcare expense records (including provider's name, address, and EIN/SSN).
Medical expense records (if you plan to itemize deductions).
Mortgage interest statements (Form 1098).
Property tax statements.
Charitable contribution records.
IRA contributions.
Health Savings Account (HSA) contributions and distributions (Form 1099-SA).
Records for any other deductible expenses (e.g., unreimbursed employee expenses if applicable, business use of home, etc.).
Prior Year Information (if applicable):
Your Adjusted Gross Income (AGI) from your previous year's tax return. TurboTax often uses this for verification.
A copy of your prior year's tax return. This can help transfer information and ensure consistency.
Organize, Organize, Organize! Create a dedicated folder (physical or digital) for all your tax documents. This makes the entire process smoother and reduces stress.
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| How To Start A New Tax Return On Turbotax |
Step 2: Access TurboTax and Start Your Return
Now that you're armed with all your documents, it's time to dive into TurboTax.
2.1 Choose Your TurboTax Product
TurboTax offers various products to fit different tax situations.
TurboTax Free Edition: Ideal for simple tax returns, typically those with W-2 income, the standard deduction, and certain credits like the Earned Income Tax Credit or Child Tax Credit.
TurboTax Deluxe: Good for homeowners, those with deductions, or who need to itemize.
TurboTax Premier: For investors (stocks, bonds, crypto) and rental property owners.
TurboTax Self-Employed: Tailored for freelancers, independent contractors, and small business owners with Schedule C income.
TurboTax Live Assisted/Full Service: Offers access to tax experts for guidance or even to have your taxes done for you.
Go to the TurboTax official website (turbotax.intuit.com) and select the product that best suits your needs.
2.2 Create or Sign In to Your Account
New Users: If you're new to TurboTax, you'll need to create an Intuit account. This involves providing your email address, creating a strong password, and potentially verifying your identity.
Click on "Sign Up" or "Create an account."
Follow the prompts to enter your information.
You may need to verify your email address or phone number.
Returning Users: Simply sign in with your existing Intuit User ID (email address or phone number) and password. If you've forgotten them, there are options to recover your credentials.
Enter your User ID and Password.
If prompted, complete any two-factor authentication for added security.
2.3 Start a New Federal Tax Return
Once you're logged in, TurboTax will typically present you with options.
Online Version:
Look for a button or link that says "Start a new tax return" or "File now."
If you're a returning customer, TurboTax often offers to transfer your prior year's information, which can save a lot of time. This is highly recommended if your situation hasn't drastically changed.
Desktop/CD Version:
When you open the program, you'll usually see an option like "Start a New Return" or you can go to "File" in the top left menu and select "New Tax Return."
If you have a prior year's TurboTax file on your computer, the software will usually prompt you to transfer that data to your new return.
Step 3: Personal Information and Filing Status
This is where TurboTax starts building the foundation of your tax return.
Tip: Review key points when done.
3.1 Enter Your Personal Details
You'll be asked to provide your name, Social Security Number, date of birth, and occupation.
Confirm your mailing address.
3.2 Determine Your Filing Status
TurboTax will ask a series of simple questions to help you determine your correct filing status. This is crucial as it affects your tax bracket, standard deduction, and eligibility for certain credits. The common filing statuses are:
Single: If you are unmarried, divorced, or legally separated according to state law on the last day of the tax year.
Married Filing Jointly: If you are married and you and your spouse agree to file one return together.
Married Filing Separately: If you are married but choose to file separate returns. This is often less advantageous but can be beneficial in specific situations (e.g., if one spouse has significant medical expenses).
Head of Household: If you are unmarried and pay more than half the cost of keeping up a home for yourself and a qualifying person (e.g., a dependent child or relative).
Qualifying Widow(er) with Dependent Child: If your spouse died in the last two years and you have a dependent child, you may be able to file as a qualifying widow(er) for two years after your spouse's death.
TurboTax's interview-style interface makes this process straightforward, asking questions to guide you to the right choice.
3.3 Add Dependents (if applicable)
If you have qualifying children or relatives you support, TurboTax will guide you through adding their information. This includes their name, SSN, date of birth, and their relationship to you. Claiming dependents can unlock valuable tax credits like the Child Tax Credit or Credit for Other Dependents.
Step 4: Income - Reporting All Your Earnings
This is where you'll input all the income documents you gathered in Step 1.
4.1 Wages and Salaries (W-2)
TurboTax makes it easy to enter W-2 information. You can often:
Import Electronically: Many employers partner with TurboTax to allow direct import of your W-2 data using your Employer Identification Number (EIN) and the box D control number. This is the easiest and most accurate method.
Snap a Photo: Using the TurboTax mobile app, you can often take a picture of your W-2, and it will auto-fill the data.
Manually Enter: If import isn't available, simply type in the information from each box of your W-2 form.
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4.2 Other Income (1099s, Self-Employment, etc.)
TurboTax will lead you through various sections for other income types.
Interest and Dividends (1099-INT, 1099-DIV): You can often import this data directly from your financial institutions or enter it manually.
Investments (1099-B): This section can be more complex, especially if you have many transactions. TurboTax offers direct import from many brokerages.
For cryptocurrency transactions, you might need to use a crypto tax software to generate a Form 8949 or a TXF file that can then be imported into TurboTax Premier or Home & Business.
Self-Employment Income (Schedule C): If you're self-employed, TurboTax will guide you through entering your income and deductible business expenses. This is a critical area where many self-employed individuals miss out on tax savings. Be meticulous with your records!
Rental Property Income: Enter income and expenses related to your rental properties.
Other Income: Report any other income sources not covered above, such as gambling winnings, unemployment benefits, or prize money.
Tip: Focus on sections most relevant to you.
Step 5: Deductions and Credits - Maximizing Your Savings
This is where you tell TurboTax about anything that can reduce your taxable income or your tax bill directly. TurboTax excels at prompting you for these opportunities.
5.1 Standard Deduction vs. Itemized Deductions
TurboTax will help you determine whether taking the standard deduction or itemizing your deductions will result in a lower tax bill. For most people, the standard deduction is simpler and results in a greater tax saving.
If you itemize, you'll input details for:
Medical and dental expenses (if they exceed a certain percentage of your AGI).
State and local taxes (SALT) paid (up to a limit).
Home mortgage interest (from Form 1098).
Charitable contributions.
Casualty and theft losses (only in federally declared disaster areas).
5.2 Tax Credits
Tax credits are particularly valuable because they directly reduce your tax liability dollar-for-dollar. TurboTax will walk you through questions to identify if you qualify for:
Child Tax Credit
Earned Income Tax Credit (EITC)
Education Credits (American Opportunity Tax Credit, Lifetime Learning Credit)
Child and Dependent Care Credit
Premium Tax Credit (for health insurance purchased through the Marketplace)
Retirement Savings Contributions Credit (Saver's Credit)
Residential Energy Credits (for certain home energy improvements)
And many more!
Step 6: Review, State Taxes, and Filing
You're almost there! This final stage is crucial for accuracy and submitting your return.
6.1 Review Your Federal Return
TurboTax has a "Review" section that performs a Comprehensive Check of your return for errors, missed deductions, and potential audit red flags. Pay close attention to any "Needs Review" warnings. While some are simply informational, others might require your attention.
Take the time to carefully read through the summary of your federal return. Does everything look correct? Are all your income sources reported? Have you claimed all applicable deductions and credits?
6.2 Prepare Your State Return
Once your federal return is complete, TurboTax will usually prompt you to start your state tax return (if your state has an income tax).
Much of the information from your federal return will automatically transfer to your state return, saving you time.
You'll answer state-specific questions and ensure all state-required forms are filled out correctly.
6.3 Choose Your Filing Method
E-file (Electronic Filing): This is the fastest and most recommended way to file your federal and state taxes. TurboTax will transmit your return directly to the IRS and your state tax agency. You'll receive confirmation when your return is accepted.
Print and Mail: If you prefer, you can print your return and mail it. TurboTax will provide instructions on where to mail your federal and state returns. This method takes longer to process and receive a refund.
6.4 Payment or Refund
QuickTip: Stop scrolling, read carefully here.
Refund: If you're getting a refund, you'll choose how you want to receive it:
Direct Deposit: Fastest way to get your refund, usually within 21 days for e-filed returns.
Mailed Check: Takes longer.
Prepaid Debit Card: Some services offer this option.
Tax Due: If you owe taxes, TurboTax will present you with payment options:
Direct Debit: Authorize the IRS/state to withdraw the payment directly from your bank account on a specific date.
Credit Card: You can pay with a credit card, but there's usually a processing fee.
Check or Money Order: Mail a payment voucher with your check.
Payment Plan: If you can't pay the full amount, TurboTax can help you explore IRS payment plan options.
Step 7: Final Submission and Confirmation
After reviewing everything and choosing your payment/refund method, you'll click "File" or "Transmit My Returns."
You'll receive a confirmation number from TurboTax.
Crucially, you'll then receive separate emails from the IRS and your state tax agency (if applicable) confirming that your return has been accepted. Keep these confirmations for your records!
Congratulations! You've successfully started and filed a new tax return on TurboTax. Remember to save a copy of your filed return for your records.
Frequently Asked Questions (FAQs)
Here are 10 common questions about starting a new tax return on TurboTax:
How to Start a New Tax Return on TurboTax if I already have an account?
Simply sign in to your existing TurboTax account. Once logged in, you'll typically see an option to "Start a new tax return" or pick up where you left off if you were working on a previous year's return. TurboTax often prompts you to transfer prior year data for convenience.
How to Know Which TurboTax Product is Right for Me?
TurboTax usually has a "Help me choose" or "Compare products" tool on their website. Generally, if you have only W-2 income and plan to take the standard deduction, the Free Edition might suffice. If you own a home, have investments, or are self-employed, you'll likely need Deluxe, Premier, or Self-Employed, respectively.
How to Import My W-2 into TurboTax?
When you reach the W-2 section, TurboTax will give you options. The easiest is often to import electronically using your employer's EIN and a control number found on your W-2 (usually Box D). Alternatively, you can snap a photo with the mobile app or manually enter the information.
How to Find My Prior Year's AGI for Verification?
Your Adjusted Gross Income (AGI) from your previous year's tax return is typically found on Line 11 of your Form 1040. If you filed with TurboTax last year, you can usually access a copy of your return through your online account.
Tip: Be mindful — one idea at a time.
How to Pay for TurboTax?
You can typically pay for TurboTax using a credit card or debit card. Some versions also allow you to deduct the TurboTax fees directly from your federal tax refund, though an additional processing fee usually applies for this option.
How to Get My Tax Refund Faster?
The fastest way to receive your tax refund is to e-file your return and choose direct deposit to your bank account. The IRS generally issues refunds for e-filed returns with direct deposit within 21 days.
How to Correct a Mistake After Filing with TurboTax?
If you need to correct a mistake after filing, you'll need to amend your tax return. TurboTax offers a feature to help you prepare an amended return (Form 1040-X). You usually need to wait until your original return has been accepted by the IRS before amending.
How to Get Help if I Have a Tax Question while using TurboTax?
TurboTax offers various support options, including an extensive online help center with FAQs and articles, a community forum, and sometimes live chat or phone support with tax specialists depending on the product you purchased (e.g., TurboTax Live Assisted).
How to Know if I Need to File a State Tax Return?
Most states with an income tax require you to file a state return if you lived or worked there. TurboTax will usually prompt you to prepare a state return based on your residency information. Always check your specific state's filing requirements.
How to Save My Progress in TurboTax?
For TurboTax Online, your progress is typically saved automatically as you go, so you can log out and return later to pick up where you left off. For desktop versions, remember to manually save your tax file periodically.
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