#Millennialtalk Recap: “All You Need To Know This Tax Season!”

RAISE YOUR HAND IF MANAGING YOUR TAXES IS STRESSFUL? 

“ME ME ME”

Between the Coronavirus pandemic, being self-employed, getting pregnant, changing my insurance, and filing jointly with my husband I had so many tax questions. There was no way that I felt confident preparing and filing my taxes on my own. Instead of losing sleep over the number of documents to organize and fear of doing something wrong, I decided to call on an Expert.

Because TurboTax truly helps to simplify what could be a very confusing process, I teamed up with @TurboTax CPA & Tax Expert Lisa Greene-Lewis, @stefanieoconnel and @StacieinAtlanta on a previous #Millennialtalk Twitter Chat to cover, “All You Need To Know For This Tax Season!”

The amount of tips, guidance, insight, and resources shared throughout the chat were INCREDIBLE and so valuable for those of you who are in a personal or professional transition, self-employed, a home-owner, investor, managing student loan or credit card debt, and/or looking to make the most of charitable donations.

Without further ado ->

HERE ARE THE CHAT HIGHLIGHTS & BEST TAKEAWAYS:

Q1. Managing taxes and all it’s to-do’s each year can be stressful, what are the key things we can do to simplify this process?

@TurboTax: 1A. One tip is to get organized! Gather all of your tax forms and documents, so that your paperwork will be ready when you’re ready to get your taxes done.  

@ChelseaKrost: I am so thankful that @TurboTax can help simplify the process. I feel confident that my taxes are done right with help from #TurboTaxLive tax experts who will:

• Answer all your questions
• Give you unlimited tax advice all year-round
• Help you get your biggest possible tax refund

@Stefanieoconnel: ASK FOR HELP! As much as I know about money, the tax code is always changing so I’m all about tapping into dedicated tax EXPERTISE.

Q2. What are the steps to take for our Taxes if we had a major Personal life change like if we bought a new house, had a baby or moved to a different state?

@TurboTax: 2A. Different life changes have different tax implications.  If you bought a new house, congrats! ????  You’ll want to take advantage of the tax deductions available to you. Here’s an overview for first-time homeowners: click here

2B. If you welcomed a new baby, congrats! There are some tax benefits you may be able to take advantage of, like the Child Tax Credit or the Earned Income Tax Credit. Check out our blog to learn more.

2C. If you moved to a different state, you still have just one federal tax return to file, but you’ll also need to file a tax return in the state you moved from and the state you moved to.  

Q3. What are the steps to take for our Taxes if we had a major Professional shift like starting a new business or started a side hustle?

@TurboTax: 3A. If you started a new business or side-hustle, be sure to stay on top of your taxes! In general, you’re expected to make quarterly estimated tax payments if you expect to owe $1,000 or more annually for your taxes. 

@Stefanieoconnel 3A. Just because your employer/client isn’t taking money out of your paycheck for taxes doesn’t mean you don’t have to pay it! When you’re self-employed, you’re also your own HR and accounting department (though I recommend getting pro help ASAP)

@ChelseaKrost: TurboTax Live Self-Employed is the perfect tax solution for freelancers, independent contractors, and small business owners.

Q4.  How has buying or selling stock within the past year impacted our taxes? What do we need to know and do?

@TurboTax: 4A. One key thing to keep in mind is, if you buy a stock or mutual fund and then sell those shares, that is a taxable event.  If you sold for a gain, it’s either a long-term or short-term capital gain. If you sold for a loss, it’s either a long-term or short-term capital loss. Here is a helpful resource for first-time investors.

Q5. How can a tax expert help to uncover a surprising tax deduction or credit? Do you currently work with a tax expert or file on your own?

@ChelseaKrost 5A: TurboTaxLive Premier makes it easy to report investment income from stocks, cryptocurrency, rental properties, etc. It searches 400+ deductions & credits, to help you keep more in your pocket. AND you can get expert help, if you need it – YES PLEASE!

@TurboTax: 5A. With TurboTax, we’ve got you covered whether you want to DIY, get expert help, or hand your taxes off to an expert.

5B. One benefit of getting expert help is that you can ask questions along the way, and get advice that’s really personalized to your unique situation. You can also hand your taxes off with #TurboTaxLive Full-Service, and let an expert do it for you, from start to finish. 

 Q6. What are the tax impacts from the past year (2020) that we should all be aware of and prepare for?

@TTaxLisa: 6A. There were over 40 million unemployed. Be aware that unemployment income is taxable, but you may be eligible for some income-based credits and deductions like EITC and the Saver’s Credit

@ChelseaKrost: 6A. 2020 was a year full of -unexpected changes that we could never have planned for.

-My husband started a new business

-I got pregnant

-We changed our insurance

-We bought and sold stock

-And we are homeowners that now both work from home!

Given all of the changes that have happened in the past year, I am thankful for the option to use Turbo Tax Self-Employed where I can get unlimited expert advice and personalized help for all of my specific tax questions.

@TurboTax 6A: One common question we see is are stimulus payments taxable. They are not taxable and if you received a partial or are eligible for more you can get more in the form of a recovery rebate credit when you file your taxes.

@stefanieoconnel: 6A. The stimulus checks are technically not considered income and therefore not taxable, but unemployment benefits are taxable.

Q7.  What are your top tax tips for those managing student loans or credit card debt?

@TurboTax:7A. If you have student loans, keep in mind that the interest portion of your loan payments may be tax-deductible. Your deduction is limited to interest up to $2,500, or the amount of interest you actually paid, whichever amount is less.

7B. If you have loans or credit card debt, consider using part of your refund to pay it down. Here are a few more ideas to help you make the most of your refund.

@Stefanieoconnel: 7A. You DON’T have to itemize your tax return to take advantage of the student loan interest deduction! So you might be able to take advantage of this write-off even if you take the standard deduction on your tax return

Q8. What are some of the biggest mistakes people tend to make when it comes to managing their taxes?

@Stefanieoconnel: 8A. Don’t miss the deadline! Give yourself more time than you think you’ll need to file just in case any issues come up.  If you’re a freelancer, don’t miss estimated income tax payments and then get hit with penalties!

@ChelseaKrost: I like to know my taxes are being done RIGHT. #TurboTaxLive makes it easy to connect with real experts who can help with your taxes, or even do them for you from start to finish. They’ll help you get every dollar you deserve. 

There is no time like the present to start preparing to file your taxes. Get your questions answered and the maximum tax refund with TurboTax.

To learn more about TurboTax Live – scroll no more and click here.

Enjoy this Livestream Q&A with @TurboTax CPA & Tax Expert Lisa Lewis where we spoke about 

-> All You Need to Know for Tax Season: Prep, Plan & Get Your Maximum Refund! <-

*This #Millennialtalk Twitter Chat & Blog are sponsored by TurboTax. All opinions are my own*