Ways Tax Prep Companies Are Fighting Tax Identity Theft in 2016

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New Steps TurboTax and H&R Block are taking to keep you safe

Taxpayers are planning to get their finances organized in time for the April 18 filing deadline. Unfortunately, tax security theft is causing a challenge. Identity thieves are also planning to file fraudulent returns.

For many years, phony tax returns have been a critical challenge for the Internal Revenue Service. According to the Government Accountability Office, IRS provides that it issued approximately $5.8 tax year in fraudulent tax refunds in 2013 alone. A 2012 approximation from the Treasury Inspector General for Tax Administration also established that due to identity theft over the subsequent five years, IRS could issue $21 billion in potentially fraudulent tax returns. Recent high-profile cyber security incidents have kept taxpayer on the edge.

New guidelines are in place to sort out this problem.  H&R Block and Intuit and other companies will share more data with the government to try to identify and rule out suspicious returns.

Tax filing companies will also enhance and add security features this year.  The guidelines require passwords to have more complex combinations of characters.  Users who exceed a specific number of failed login attempts will be locked out. Companies will use a two-factor authentication to help reduce the security breaches.

Some of these features are not new to tax prep software.  Nonetheless, some firms are changing how they operate. TurboTax now allows users to turn on two-factor authentication each time they log in the service. Hackers often rely on knowledge of the victim’s personal life to trick companies to given them targets’ login details by answering security questions. According to Intuit Vice President Julie Miller, Turbo and other software will actively notify users whenever changes are made to their accounts so as to sort out this threat and others.

H&R Block’s Ciaramitaro says the company will aggressively send more and new data to the government than it has done in the past to solve the tax identity theft problem caused by using outdated systems that identity thieves have mastered to outwit easily.

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Choosing Tax Preparation Software in 2015

There are many factors online tax preparers need to figure in when choosing the correct option for them to file their taxes in 2015. A few of these concerns are safety, tools provided by the various companies, and pricing.

TurboTax 2015 has provided a tremendous example of safety measures when it comes to your online tax preparation. Regrettably, many companies do not take the same measures that TurboTax did with Turbo Tax 2013 and more recent versions. Because certain companies do not take security features as one of their top priorities, a rise has been seen in tax refund theft. To ensure that you receive your tax refund and it does not fall into the hands of someone else, you should look for tax preparation software that includes security features and use a cryptic password for your tax preparation software.

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Once you have located a few tax preparation software packages with high security features, look at the tools featured in each version of the tax preparation software in your line up. Are the tools listed with the software what you will need for your specific tax preparation and will they lead to an ease of preparation or are there too many for your tax preparation and will lead to little more than jumbling up the process of your tax preparation. Tools should provide convenience and efficiency, not confuse consumers.

Once the tools and security features have been looked into, you should look into the price of the tax preparation software that you still have on your list. If they have made it through your security and tools checklist, each should provide just what you need for your tax preparation needs so you can, hopefully, pick from a variety of prices.

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Essential Information About TaxAct and TurboTax Programs

2014 is gone and being a new year; you should begin thinking about preparing and filing your federal taxes. Tax preparation and filing can consume a lot of your time if you have no experience doing so. However, if you get the right tax programs such as TaxAct and TurboTax, then you are ready because you will file the taxes in the shortest time possible. Besides, you will have no worries since the programs will guide you all through the process.

There are a few changes in the tax code, but these tax programs have been adjusted to suit the new system. Currently, TurboTax has a limited-time discount for the simple filers; 1040EZ/A filers that are,you are capable of filing your federal and state taxes free of charge. Isn’t that good enough for simple filers? There is no promotion or discount codes required to enjoy the offer. You simply need to file your taxes with the TurboTax Federal Free Edition. It is not clear when the promotion will end hence it would be prudent to be among the first people and enjoy the benefits.

TaxACT Logo (Photo credit: Wikipedia)

It’s wise to understand some changes that TurboTax has made in its packages though. The sections for filing Schedule C, D and E are now excluded from TurboTax Delux package. The Schedule C includes self-employment income and expenses; Schedule D is investments filing, and Schedule E entails the partnership and rental income filings. The Schedule D and E are now found in the Turbo Premier and other higher packages while on the contrary the Schedule E is found in Home and Business edition only.Irrespective of the significant changes, TurboTax is very reliable and intuitive. The software is simple to use and you can use it for complex filings both for professionals and independent users. In addition, it imports information, offer quick calculations, and give you audit risk and refund.

TaxAct is very affordable yet its features are just effective as other programs. It offers even learning materials and mini-alerts that identify errors that can help you in audit risk identification and give the best recommendations to take. By this, you are sure of accuracy of your tax filling even with the simple process. Just like TurboTax, TaxAct offers superior value and is suitable for both simple and complex tax returns for individual users and institutions.

These tax programs enable you file your taxes online, and they bring you many benefits. For instance, you can save money that you might have paid an accountant to do the job for you. Secondly, you save time when you use for example TurboTax company because you can take even 30 minutes only to finish your tax filing. In addition, you don’t have to leave the comfort of your home since you don’t have to book an appointment with an accountant. In addition, the process enhances your financial situation awareness because you can observe your income, expenditures and assets that you have had for the whole year.

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Customer The Ultimate Winner In Battle Royale Between H&R Block & Turbo Tax

A full-fledged war is never a good thing, except when two corporations are battling it out. H&R Block attempts to poach users of TurboTax and the latter’s attempt to retain its clientele has led to a pleasant surprise— lots of freebies for customers including you.

The battle began when the TurboTax Deluxe 2014 edition received around 500 one-star reviews on Amazon from irate customers who felt cheated upon discovering that the 2014 Deluxe edition did not allow users to file Schedule C and D forms used to report investment and small business income. Customers were annoyed that they were indirectly being forced to upgrade to a costlier version of TurboTax.

Tax prep giant H&R Block decided to fish in troubled waters by promising to give their Deluxe tax prep software for free to all those individuals who have bought the Basic or Deluxe edition of TurboTax 2014. Curiously, H&R Block has avoided making this promise on its website and has preferred to spread the word through the media.

All H&R Block asks for is proof that the individual had indeed purchased the Basic or Deluxe version of TurboTax. A quick email to [email protected] along with name, address, contact number, OS specs—Mac or Windows, and a scan or email indicating purchase of TurboTax is enough for you to enjoy the unabridged version of H&R Block’s Deluxe edition.

Stung by the virulent criticism and H&R Block’s attempt to poach its customers, the VP of TurboTax, Bob Meighan reiterated that the company plans to do all it takes to retain its customers. The company is indicating that it is open to providing a free upgrade to Deluxe customers who feel cheated after having purchased the software.

TurboTax has sought to quickly counter H&R Block’s strategy because tax software customers rarely consider switching after getting used to a particular brand. Even if the functions are similar, customers often develop a psychological block about using a new program after getting used to a particular brand.

Yet, this is probably the best opportunity for TurboTax users to take a peek at what H&R Block is all about. Even those who spent $20 on TurboTax Basic will end up receiving free access to H&R Block’s Deluxe version, which costs around $55. Cost benefits apart, the customer will also enjoy access to a new user experience.

With average value of a tax refund hovering around $3000 and the cost of tax software deductible for those who itemize their deductions, this battle between two tax prep software companies is turning out to be a win-win situation for the customer.

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Turbo Tax Offers Free Preparation And Filing Services For Basic Filers

Absolutely No Fees or Costs Associated with TurboTax

Nothing owed to Federal; Nothing owed to State, Nothing Owed to File Return Available to Sixty Million United States Citizens!

Americans receive the best tax break making use of “TurboTax”. Starting tomorrow, sixty-million residents of the United States who work hard for their money may prepare and file basic state and federal returns for free. There is no cost involved whatsoever. Not one thin dime is owed. The reason for the tremendous break is because TurboTax is taking away the laboriousness of preparing taxes in order that its customer base acknowledges there is not a return preparation and filing service offering such a tremendous value in filing 2014 Taxes! Customers may rest assured their 2014 Taxes are prepared and filed completely free of charge.

It is the very first time, U.S. citizens may file the Federal 1040EZ return, and 1040A return, along with state tax returns for zero cost using TurboTax for 2014 Taxes. The edition of TurboTax for 2014 Taxes is a no-cost Edition. Persons using TurboTax for their respective 2014 Taxes do not pay additional monies in order to stay within compliance of new Health Care legislation either. They also do not pay extra using Turbo Tax for 2014 Taxes when claiming the Earned Income Tax Credit. The edition named Absolute Zero from TurboTax for 2014 Taxes allows users using another tax preparation method or service to easily transition to Turbo Tax for 2014 Taxes. The free promotion is designed to attract new customers to TurboTax. If anyone wants to transition to TurboTax for 2014 Taxes now is the best time to do it, especially since the edition allows the user to pay no fees.
TurboTax is a well recognized and leading provider of tax preparation services. The trusted TurboTax service is responsible for preparation of more Federal Tax returns; over any other tax preparation service. The edition of TurboTax Absolute Zero for 2014 Taxes is useful to the sixty percent of individuals who only need to file basic returns; and who file early during the year in order to attain a refund in an expedient manner. A good many persons within the sixty percent basic return category receive a refund which averages approximately two-thousand seven hundred dollars. The sizable check for 2014 Taxes is frequently the largest amount of money the individual, within the sixty percent category, receives on an annual basis.

Sasan Goodarzi, General Manager of the Intuit Consumer Tax Group acknowledges the basic need of many individuals requiring an early tax refund. Goodarzi made it clear that TurboTax also recognized individuals were seeking value with regard to the money they earned. TurboTax believes the free filing service is useful in recognizing the fact that hard-working Americans everywhere are seeking the best value possible in way of filing their respective tax returns and attaining a refund within a relatively short period of time.

Persons wishing to get ahead of the game in way of attaining a tax refund for their respective 2014 Taxes are wise to file using the zero cost edition of Turbo Tax now. The return is safely held and then properly submitted to the Internal Revenue Service once e-filing starts taking place on January 20th for 2014 Taxes.

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Surprising Results From The Intuit TurboTax Health Survey By Harris Poll

Harris Poll recently conducted the Intuit TurboTax Health Survey, designed to gauge respondents’ knowledge of Obamacare taxes as they relate to their taxes. Unfortunately, the poll revealed that just under 50% of Americans don’t realize they need to report their health insurance coverage status on their 2014 tax returns.

Over 2,000 adults in the United States over 18 years of age were questioned. The poll showed just how many people still don’t know how Obamacare and their health insurance relates to their taxes.

Barack Obama signing the Patient Protection an...
Barack Obama signing the Patient Protection and Affordable Care Act at the White House (Photo credit: Wikipedia)

For 2015 and beyond, the Affordable Care Act requires that Americans prove they hold qualifying health insurance while filing their 2014 taxes. Those without proof of coverage will face a tax penalty of varying amounts. A majority of uninsured Americans (62%) know about this penalty for lacking coverage. However, 87% don’t realize the deadline to avoid the penalty has already passed. If coverage is purchased during the current open enrollment period, then coverage applies to returns filed by April 2016 for 2015 taxes.

Plus, 56% of respondents didn’t know about potential exemptions from the Affordable Care Act’s tax penalty that are available. 45% of Americans don’t even know about the premium tax credits available to lower the cost of health insurance for low-income families. Even moderate-income families can qualify for partial discounts.

The nation’s leader in online tax preparation, TurboTax, has created a resource for Americans to understand the details of Obamacare. Users can access for TurboTaxHealth.com for more information. Through TurboTax Health, users can determine their eligibility for low-cost health coverage or determine their tax penalties if they lack coverage. Also, the site features TurboTax 2014 Exemption Check, which tells users if they qualify for exemption from the Affordable Care Act penalty. They can then apply for the exemption.

About 90% of all Americans have health insurance now. In the South, only 85% of people have coveraged, compared to 94% in the Northeast, and over 90% in the West and Midwest. Over 75% of people plan to continue the coverage they acquired from the Marketplaces the previous year. On top of that, early enrollees during the first open enrollment tend to know far more about the Affordable Care Act and its requirements. Individuals under a parent’s coverage tend to be less aware of penalties compared to those with coverage from an employer.

This particular survey was conduced by Harris Poll online within the United States. The survey was conducted for TurboTax from November 6 to 10 and November 13-17. In the survey, over 2,000 adults were surveyed both times. No probability sample was used, so now sampling error is available.

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How TurboTax 2014 Can Help You With Obamacare Taxes

Nearly Half Of All US Residents Don’t Know That They Have To Report The Status Of Their Health Insurance On Their 2014 Tax Returns

A recent survey has revealed that nearly half of US residents (approximately 48%) do not know that they are supposed to report their health insurance status on their tax returns for 2014. With tax time just around the corner, the Health Survey by Intuit TurboTax (Nasdaq: INTU) that was performed by Harris Poll over 2,000 US resident shows that by majority, Americans are still not aware of the connection between their 2014 taxes and their health care status.

As per the Affordable Care Act, 2015 is the first year that US residents are required to show proof of qualifying coverage when filing their taxes and if they fail to do so, they will face tax penalties. Although many uninsured adults within the US (about 62%), know that those without coverage will pay penalties according to Obamacare Taxes, 87% of this same demographic do not know that the deadline for avoiding this tax penalty passed some time ago. Any coverage secured during the current enrollment period, which ends in February of 2015, will only be applicable for tax returns filed in April 2016.

Most people who lack health coverage (56%), also don’t know that uninsured people who meet this criteria could be qualified for an exemption from the penalty that Obamacare Taxes entails.

Almost half of US residents (45%) do not know about the premium tax credits that help make coverage less costly for families that are at low to moderate income levels.

Sacha Adam, the product leader for TurboTax 2014 says that these figures show that people are still not aware of the full implications of Obamacare taxes. According to Adam, TurboTax 2014 is committed to bridging this gap by supplying people with a number of free resources that are easy to use and that help them to learn more about thee connection between their health care choices and their taxes.

One major offering from TurboTax 2014 that is designed to assist taxpayers with Obamacare Taxes is a free resource that can be found at TurboTaxHealth,com. This can be used to determine whether or not people are eligible to receive low-cost coverage and to learn what penalty must be paid if coverage has yet to be secured. The TurboTax Exemption Check is also here, which allows people who do not have coverage to quickly determine whether or not they are exempt from the ACA penalty and then people can then apply for this exemption.

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