Intuit Unveils TurboTax CPA Select

TurboTax CPA Select

TurboTax CPA Select is designed to connect small and medium business owners who require someone to file their taxes with a CPA.  In fact, the unveiling was done just in time for the new tax season. With this system, SMBs will know the amount of tax beforehand.

Brian Crofts, Group Product Manager, insists that With CPA Select, the company is focused on fulfilling their customers’ needs.

The new services will be introduced to its clients in two phases. First at the Small Business VCon on January 23. Second at the Intuit Innovation Gallery Walk on January 29. Intuit’s Mountain View headquarters will host the Gallery Walk from 4 – 8 p.m. PT. Most importantly, the company will also take this opportunity to showcase the company’s newest products and services and allow CEO and leaders to air their technology expectations.

Available CPAs have profiles; complete with pictures, star ratings, and client reviews. Notably, it also comes with educational and professional background information. When a CPA is selected, the user uploads and submits tax return from the previous year. Within 24 hours, the selected CPA responds to the request. Users accept or reject the estimate. If accepted, the tax return is prepared and filed.

To join the online service, complete the registration form or login using Facebook. Users are required to give consent for any documents they upload.

Crofts stated that “it’s an online service, but most importantly convenient, because it helps both individual and businesses find someone to file their taxes.” Customers can view a picture, read testimonials from previous customers and review the professionals’ history in one location.

More so, CPAs who are a part of the TurboTax service, connect their profile to their social media sites. The cost of the service starts at $89.95.

Wealthy California Residents Upset About Higher Tax Rates

Residents Upset About Higher Tax Rates

Many business owners are seriously considering leaving “The Golden State” for good due to excessively high taxes.

From small business owners in the bustling town of San Diego to the top vintners in the beautiful Napa Valley, many high-income Californians are preparing to pack their bags for good.

PGA Tour commissioner Tim Finchem and Phil Mic...
PGA Tour commissioner Tim Finchem and Phil Mickelson at the awards ceremony for The Players Championship in 2007, which Mickelson had just won. (Photo credit: Wikipedia)

High-ranking golfer Phil Mickelson is speaking out about his feelings on this issue. He feels that he is being forced to make some tough decisions and has admitted that he has considered relocating to a state that doesn’t make top-earning residents pay such high taxes. Although Mickelson was vocal about his stance on high state taxes, he later regretted speaking so openly.

Peter Farrell, a medical-device manufacturer in San Diego, has approximately 600 workers and has considered moving his offices to a different state in order to save on income tax. Texas has become an attractive option for many business owners, primarily because it is a no-income-tax state. Income tax in California is currently 13.3%, which is too high, according to many residents.

Many believe that Proposition 30 is the cause of these tax laws that are seemingly unfair to those with higher incomes. This tax-increase proposal was voted into law by California’s residents, resulting in a huge net spend for the state. Households earning $250,000 or more each year already pay up to 62% in state taxes, and a further increase in taxes is causing residents to bail. In fact, many residents have already left the state, according to Fox News. These residents chose to remain anonymous due to their fear of being audited by the IRS, but all of them expressed their frustrations with California’s tax laws.

Residents are also trying to figure out how to legally relocate without completely cutting ties with California State, according to tax analysts. These experts believe that many residents will figure out how to do this and act on it by the year 2014.

The Benefits Of Using Federal Free TurboTax

Federal Free TurboTax

It isn’t long until 2012 taxes have to be filed. More people are filing online using software like free Turbo Tax. Filing online can make the process easier and it saves time going to a tax preparer. Software such as Federal Free TurboTax does everything for you.

How Turbo Tax Software Works

Turbotax get started
Turbotax get started (Photo credit: wrkng)

Turbo Tax is used by millions of people each year. They comment on how it made the process simpler and faster. This software automatically calculates your refund or taxes you according to the data you enter. You can also save your documents for future reference in case any issues arise. If you can’t finish in one session, it saves your work. Your return is sent to the IRS after completion. Perhaps one of the best features of Turbo Tax is the deduction maximizer. It uses a patented algorithm to figure you optimal deductions. Many users have seen a great increase in refunds.

There are still those who prefer to use the conventional way of filing taxes. However,choosing this route can take much longer to get your refund. It can take the IRS up to six weeks before they send your check in the mail. Federal Free TurboTax software is something you may want to think about for filing taxes in 2013. It works the same as if you go to a tax preparer without all the hassle. You will be able to get your refund much sooner when you file online.

Eliminating State Income Taxes Could Spur Economic Growth

Eliminating State Income Taxes

While Washington continues to struggle with attempts at major changes to the federal tax system, individual states have no such problem.  Many states in the South and Midwest that have single-party legislatures and are Republican-controlled are seeking to do away with the tax filing of state income taxes in favor of higher and more diverse sales taxes.

With 37 of the 50 states having single-party control of the legislature and governorship, seemingly radical projects such as tax reform can be handled much easier than in states that struggle with the need for a middle ground between parties.  Of those 37 states, 25 are Republican-controlled, and it is primarily these states that are considering doing away with the tax filing of income taxes  and replacing the lost  revenue with higher sales tax and sales tax on previously untaxed items such as food and luxury services.

This image depicts the total tax revenue (not ...
This image depicts the total tax revenue (not adjusted for inflation) for the U.S. federal government from 1980 to 2009 compared to the amount of revenue coming from individual income taxes. The data comes from the Office of Management and Budget’s record of the ‘Budget of the US Government FY 2011’, specifically the ‘Historical Tables, Table 2.1.’ The information is also here. (Photo credit: Wikipedia)

Much of this shift being considered is not grounded in new ideas, but rather comes partly from the idea of trickle down or supply chain economics, popular during Reagan’s presidency and still somewhat popular with Republicans today.  Critics of the move from income taxes to higher sales taxes are concerned that the shift will place too much of a burden on the poor and middle-class.  However, proponents point out that placing sales tax on services would also tax higher income groups as well.

Proponents of this idea also state that eliminating income taxes at the state level would spur economic growth for everyone.  In addition, it has been proposed that states with lower income tax burdens continually outperform higher tax states.  However, other studies have claimed to show that the opposite is true, using the relative economic strength of higher tax states like New York as an example.

Tax Returns: Processing Begins On January 30th

Tax Return Processing

The Internal Revenue Service of the United States(IRS) made the announcement this past week that the season for filing taxes will not begin until January 30th. They are not going to start any processing of individual tax returns until that date.

The IRS had originally announced January 22nd as the date they would be opening tax filing. The reason for the bump back in the date is the changes in the tax law that congress passed on New Year’s Day. This all had to do with the “fiscal cliff” negotiations between house Republicans and the president.

Tax
Tax (Photo credit: 401(K) 2013)

At the current time, the IRS is finishing their testing and programming of their processing systems while also updating their forms. These updates according to the IRS are going to allow the majority of the tax filers to be able to file their returns beginning January 30. Those who require any more obscure types of forms for issues such as general business credits, depreciation of property or energy credit claims to name a few will find that the updating of the processing systems and forms will probably allow them to file toward the end of February or the beginning of March.

Steven Miller who is currently serving as the acting commissioner of the Internal Revenue Service has gone out of his way to reassure the public that all efforts are being made to get the process up to  full speed.

The IRS has also stated that before January 30th even paper returns will not be processed and advises the public that electronic returns do in fact speed the process and make for faster refunds to the public. They also point out that last year the percentage filing electronically surpassed 80%.

The bottom line as Mr. Miller reminds the public is that electronic filing is truly the best choice for the taxpayer to make in terms of getting things done efficiently and quickly.

The Fiscal Cliff Fact Check

Checking the facts on President Obama and the ‘fiscal cliff’ deal.

There are some important facts which President Obama fails to mention in a Web video concerning the fiscal deal that leave the wrong impression concerning its impact on both the deficit and the taxpayers:

The president tells everyone that “middle-class families” Re not going to have to pay anywhere up to $2000 in additional taxes this coming year. This is certainly true in regard to income taxes however Obama fails to also tell the public about a payroll tax cut expiring. That expiration means that approximately 77% of all taxpayers are going to be paying more taxes this year. That number includes those who earn between $75000 and %100,000 who will be paying up to $1200 additional. This will come as quite a shock to this group who fit well in the broad definition of middle class which the president consistently uses.

President Barack Obama at the Fiscal Responsib...
President Barack Obama at the Fiscal Responsibility Summit. (Photo credit: Wikipedia)

President Obama also tells the public that this agreement will “reduce the deficit”. The truth is that over the next ten years approximately four trillion dollars will be added to that deficit due to Bush tax cut extensions for all but the top one=percent of taxpayers. This deal will actually ‘reduce the deficit’ if it is compared to what it would have been had the Bush tax cuts been extended for every single taxpayer.

The fact of the matter is that all of the president’s comments on the fiscal-cliff dealings  may leave the impression that most people will be paying the same taxes as last year. This however is just not correct. The president leaves out the fact that a two year Social Security payroll tax deduction was permitted to expire resulting in people paying more this year in taxes.