Using Turbo Tax for the first time how long would it take you to do one brokerage and one credit union?

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iamblessed
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Using Turbo Tax for the first time how long would it take you to do one brokerage and one credit union?

Post by iamblessed »

Very old school here been using tax lady until now. Will I need to use TurboTax Premier? I sold a couple of mutual funds.
Last edited by iamblessed on Sun May 16, 2021 10:53 am, edited 1 time in total.
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RickBoglehead
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Re: Using Tubro Tax for the first time how long would it take you to do one brokerage and one credit union?

Post by RickBoglehead »

ABSOLUTELY NOT, you do not need Premier.

TurboTax (and Quicken) try to scare people into using higher versions.

If you're filing a state return also, then get the TurboTax Deluxe (download) version with free state.

If you go slow, figure a few hours.

If you go fast, figure 60 minutes or less.
Last edited by RickBoglehead on Sun May 16, 2021 11:04 am, edited 1 time in total.
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delamer
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Re: Using Tubro Tax for the first time how long would it take you to do one brokerage and one credit union?

Post by delamer »

Deluxe has worked fine for me for years, including for reporting capital gains.

You can let the software walk you through each category or input data directly into forms.

I recommend the former; you don’t know what you don’t know.

I’d guess a couple hours to go through everything. But if you just have a W-2 and two income other reports, it could be less. You can save and come back if you want to break it up.

Will you have a state return too?
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dbr
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Re: Using Tubro Tax for the first time how long would it take you to do one brokerage and one credit union?

Post by dbr »

Given our tax return has looked about the same for years now and that we download all the brokerage statements, I probably spend about 30 minutes to run through a 1040 SR return in Turbo-Tax. It might be a little more than that all the way through e-filing and paying for the state e-file. If you are less familiar with both your tax return and the program and have to type in a lot of data or figure out how to get it a person could spend at least a couple of hours or more, depending on what dilemmas comes up. I think the most likely time drain would be not having all the documentation you need and having to find it. I know through the whole year what to save and make sure it is there in one place when I am ready to do the return.
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Re: Using Tubro Tax for the first time how long would it take you to do one brokerage and one credit union?

Post by iamblessed »

delamer wrote: Sun May 16, 2021 11:02 am Deluxe has worked fine for me for years, including for reporting capital gains.

You can let the software walk you through each category or input data directly into forms.

I recommend the former; you don’t know what you don’t know.

I’d guess a couple hours to go through everything. But if you just have a W-2 and two income other reports, it could be less. You can save and come back if you want to break it up.

Will you have a state return too?
Yes state to.
talzara
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Re: Using Turbo Tax for the first time how long would it take you to do one brokerage and one credit union?

Post by talzara »

iamblessed wrote: Sun May 16, 2021 10:49 am Very old school here been using tax lady until now. Will I need to use TurboTax Premier? I sold a couple of mutual funds.
Maybe. It depends on whether you use the installed or the online version of TurboTax. It also depends on what is reported on your 1099-B.
RickBoglehead wrote: Sun May 16, 2021 10:53 am ABSOLUTELY NOT, you do not need Premier.
delamer wrote: Sun May 16, 2021 11:02 am Deluxe has worked fine for me for years, including for reporting capital gains.
In the installed version of TurboTax, every edition includes every form. If the interview does not cover your tax situation, you can always enter the data directly into the forms.

The online version of TurboTax is segmented to maximize Intuit's profits. Schedule D is not available in Deluxe, so you may need Premier: https://turbotax.intuit.com/personal-ta ... #tax-forms

However, if all of your capital gains are from distributions and covered shares, then you may not have to file a Schedule D.

Edit: Explained that Schedule D may not be needed for covered shares.
Last edited by talzara on Sun May 16, 2021 1:39 pm, edited 2 times in total.
dbr
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Re: Using Turbo Tax for the first time how long would it take you to do one brokerage and one credit union?

Post by dbr »

I should add the time to use TT is also reduced by uploading the previous year return from saved files. That means all the taxpayer and contact information is already loaded along with any carryovers. That saves a lot of time. This is easy with the downloaded version, but I don't know what happens with on-line versions. If they allow you to save the tax file from the previous year then you have a lot of the entries already populated.
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Re: Using Turbo Tax for the first time how long would it take you to do one brokerage and one credit union?

Post by talzara »

dbr wrote: Sun May 16, 2021 12:30 pm I should add the time to use TT is also reduced by uploading the previous year return from saved files. That means all the taxpayer and contact information is already loaded along with any carryovers. That saves a lot of time. This is easy with the downloaded version, but I don't know what happens with on-line versions. If they allow you to save the tax file from the previous year then you have a lot of the entries already populated.
The online version of TurboTax stores your data for 7 years.
delamer
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Re: Using Turbo Tax for the first time how long would it take you to do one brokerage and one credit union?

Post by delamer »

talzara wrote: Sun May 16, 2021 12:13 pm
iamblessed wrote: Sun May 16, 2021 10:49 am Very old school here been using tax lady until now. Will I need to use TurboTax Premier? I sold a couple of mutual funds.
Maybe. It depends on whether you use the installed or the online version of TurboTax. It also depends on what is reported on your 1099-B.
RickBoglehead wrote: Sun May 16, 2021 10:53 am ABSOLUTELY NOT, you do not need Premier.
delamer wrote: Sun May 16, 2021 11:02 am Deluxe has worked fine for me for years, including for reporting capital gains.
In the installed version of TurboTax, every edition includes every form. If the interview does not cover your tax situation, you can always enter the data directly into the forms.

The online version of TurboTax is segmented to maximize Intuit's profits. Schedule D is not available in Deluxe, so you may need Premier: https://turbotax.intuit.com/personal-ta ... #tax-forms

However, if all of your capital gains are from distributions and covered shares, then you may not have to file a Schedule D.

Edit: Explained that Schedule D may not be needed for covered shares.
I’ve always used the downloaded version. I don’t want our information stored on the cloud.
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delamer
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Re: Using Tubro Tax for the first time how long would it take you to do one brokerage and one credit union?

Post by delamer »

iamblessed wrote: Sun May 16, 2021 12:04 pm
delamer wrote: Sun May 16, 2021 11:02 am Deluxe has worked fine for me for years, including for reporting capital gains.

You can let the software walk you through each category or input data directly into forms.

I recommend the former; you don’t know what you don’t know.

I’d guess a couple hours to go through everything. But if you just have a W-2 and two income other reports, it could be less. You can save and come back if you want to break it up.

Will you have a state return too?
Yes state to.
Federal e-filing is free, but it costs $24.95 (if memory serves) to e-file your state return. So I always print our state return and mail it in.
One thing that humbles me deeply is to see that human genius has its limits while human stupidity does not. | | Alexandre Dumas, fils
Colorado Guy
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Re: Using Tubro Tax for the first time how long would it take you to do one brokerage and one credit union?

Post by Colorado Guy »

delamer wrote: Sun May 16, 2021 2:30 pm Federal e-filing is free, but it costs $24.95 (if memory serves) to e-file your state return. So I always print our state return and mail it in.
FYI. I assume your state may have an option similar to mine. I used TurboTax to calculate my federal and state taxes and refunds, ensuring they matched. While I then filed my federal with Turbotax, I could have filed my state's tax electronically on the state's tax site for free, using the numbers generated from Turbotax. That avoids the Turbotax $25 fee, plus avoid any potential mail delays.
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Re: Using Turbo Tax for the first time how long would it take you to do one brokerage and one credit union?

Post by livesoft »

My son used tax-prep software for the first time this year and it took him about an hour from starting the program to filing. He could have gone faster if he didn't have to go find his W-2 and some other tax-related documents.

That said, don't wait to the last minute to do this. You might as well file for an extension rather than rush this task.
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delamer
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Re: Using Tubro Tax for the first time how long would it take you to do one brokerage and one credit union?

Post by delamer »

Colorado Guy wrote: Sun May 16, 2021 2:46 pm
delamer wrote: Sun May 16, 2021 2:30 pm Federal e-filing is free, but it costs $24.95 (if memory serves) to e-file your state return. So I always print our state return and mail it in.
FYI. I assume your state may have an option similar to mine. I used TurboTax to calculate my federal and state taxes and refunds, ensuring they matched. While I then filed my federal with Turbotax, I could have filed my state's tax electronically on the state's tax site for free, using the numbers generated from Turbotax. That avoids the Turbotax $25 fee, plus avoid any potential mail delays.
I cannot believe that I missed this option!

It is available for our state, so things will be simpler for the 2021 filing and forward.

Thank you!
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hachiko
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Re: Using Turbo Tax for the first time how long would it take you to do one brokerage and one credit union?

Post by hachiko »

delamer wrote: Sun May 16, 2021 2:29 pm
talzara wrote: Sun May 16, 2021 12:13 pm
iamblessed wrote: Sun May 16, 2021 10:49 am Very old school here been using tax lady until now. Will I need to use TurboTax Premier? I sold a couple of mutual funds.
Maybe. It depends on whether you use the installed or the online version of TurboTax. It also depends on what is reported on your 1099-B.
RickBoglehead wrote: Sun May 16, 2021 10:53 am ABSOLUTELY NOT, you do not need Premier.
delamer wrote: Sun May 16, 2021 11:02 am Deluxe has worked fine for me for years, including for reporting capital gains.
In the installed version of TurboTax, every edition includes every form. If the interview does not cover your tax situation, you can always enter the data directly into the forms.

The online version of TurboTax is segmented to maximize Intuit's profits. Schedule D is not available in Deluxe, so you may need Premier: https://turbotax.intuit.com/personal-ta ... #tax-forms

However, if all of your capital gains are from distributions and covered shares, then you may not have to file a Schedule D.

Edit: Explained that Schedule D may not be needed for covered shares.
I’ve always used the downloaded version. I don’t want our information stored on the cloud.
If you efile they already store it "on the cloud". Even if you don't efile, the downloaded software is constantly calling home so unless you're blocking it with a firewall, who knows what information they're storing.
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ram
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Re: Using Turbo Tax for the first time how long would it take you to do one brokerage and one credit union?

Post by ram »

dbr wrote: Sun May 16, 2021 12:30 pm I should add the time to use TT is also reduced by uploading the previous year return from saved files. That means all the taxpayer and contact information is already loaded along with any carryovers. That saves a lot of time. This is easy with the downloaded version, but I don't know what happens with on-line versions. If they allow you to save the tax file from the previous year then you have a lot of the entries already populated.
I have used the online version for years. Last years data gets imported including the balance in your Traditional IRA ( $0.00 for me) and the capital loss carried forward. It knows if you track non deductible contributions to your traditional IRA.
The OP will be using it the first time (presumably) and will not have that benefit.

This year I had a slight problem with the backdoor Roth and a bigger problem with the credit for foreign tax paid which exceeded $600 for me. Eventually both solved. The OP's situation seems not to be that complex.
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Re: Using Turbo Tax for the first time how long would it take you to do one brokerage and one credit union?

Post by delamer »

hachiko wrote: Sun May 16, 2021 2:59 pm
delamer wrote: Sun May 16, 2021 2:29 pm
talzara wrote: Sun May 16, 2021 12:13 pm
iamblessed wrote: Sun May 16, 2021 10:49 am Very old school here been using tax lady until now. Will I need to use TurboTax Premier? I sold a couple of mutual funds.
Maybe. It depends on whether you use the installed or the online version of TurboTax. It also depends on what is reported on your 1099-B.
RickBoglehead wrote: Sun May 16, 2021 10:53 am ABSOLUTELY NOT, you do not need Premier.
delamer wrote: Sun May 16, 2021 11:02 am Deluxe has worked fine for me for years, including for reporting capital gains.
In the installed version of TurboTax, every edition includes every form. If the interview does not cover your tax situation, you can always enter the data directly into the forms.

The online version of TurboTax is segmented to maximize Intuit's profits. Schedule D is not available in Deluxe, so you may need Premier: https://turbotax.intuit.com/personal-ta ... #tax-forms

However, if all of your capital gains are from distributions and covered shares, then you may not have to file a Schedule D.

Edit: Explained that Schedule D may not be needed for covered shares.
I’ve always used the downloaded version. I don’t want our information stored on the cloud.
If you efile they already store it "on the cloud". Even if you don't efile, the downloaded software is constantly calling home so unless you're blocking it with a firewall, who knows what information they're storing.
I envisioned that TurboTax was just passing it through to the IRS, and not storing the return (except maybe temporarily.

But admittedly that was just an assumption.
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pshonore
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Re: Using Tubro Tax for the first time how long would it take you to do one brokerage and one credit union?

Post by pshonore »

delamer wrote: Sun May 16, 2021 2:56 pm
Colorado Guy wrote: Sun May 16, 2021 2:46 pm
delamer wrote: Sun May 16, 2021 2:30 pm Federal e-filing is free, but it costs $24.95 (if memory serves) to e-file your state return. So I always print our state return and mail it in.
FYI. I assume your state may have an option similar to mine. I used TurboTax to calculate my federal and state taxes and refunds, ensuring they matched. While I then filed my federal with Turbotax, I could have filed my state's tax electronically on the state's tax site for free, using the numbers generated from Turbotax. That avoids the Turbotax $25 fee, plus avoid any potential mail delays.
I cannot believe that I missed this option!

It is available for our state, so things will be simpler for the 2021 filing and forward.

Thank you!
Note that using this method will likely require you to re-calculate your state tax liability using the state software. I do this myself. As an example, CT has a relatively simple return that starts with Federal AGI. There are many adjustments such as additions (non CT muni interest) and some subtractions (SS adjustment, 529 contributions) to name just a few, as well as some potential credits to figure. I have to key the Employer Tax id for any 1099/W2 etc. that shows CT tax withheld. Probably 20-30 minutes of work. And you cannot start with last years state return. Form 2210 is a separate mailin. Some folks decide to use the TT option and pay the $25, but I do not. YMMV.
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Re: Using Tubro Tax for the first time how long would it take you to do one brokerage and one credit union?

Post by RickBoglehead »

Colorado Guy wrote: Sun May 16, 2021 2:46 pm
delamer wrote: Sun May 16, 2021 2:30 pm Federal e-filing is free, but it costs $24.95 (if memory serves) to e-file your state return. So I always print our state return and mail it in.
FYI. I assume your state may have an option similar to mine. I used TurboTax to calculate my federal and state taxes and refunds, ensuring they matched. While I then filed my federal with Turbotax, I could have filed my state's tax electronically on the state's tax site for free, using the numbers generated from Turbotax. That avoids the Turbotax $25 fee, plus avoid any potential mail delays.
This isn't an option to many. I have never experienced a mail delay.
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Re: Using Turbo Tax for the first time how long would it take you to do one brokerage and one credit union?

Post by hachiko »

delamer wrote: Sun May 16, 2021 3:05 pm
hachiko wrote: Sun May 16, 2021 2:59 pm
delamer wrote: Sun May 16, 2021 2:29 pm
talzara wrote: Sun May 16, 2021 12:13 pm
iamblessed wrote: Sun May 16, 2021 10:49 am Very old school here been using tax lady until now. Will I need to use TurboTax Premier? I sold a couple of mutual funds.
Maybe. It depends on whether you use the installed or the online version of TurboTax. It also depends on what is reported on your 1099-B.
RickBoglehead wrote: Sun May 16, 2021 10:53 am ABSOLUTELY NOT, you do not need Premier.
delamer wrote: Sun May 16, 2021 11:02 am Deluxe has worked fine for me for years, including for reporting capital gains.
In the installed version of TurboTax, every edition includes every form. If the interview does not cover your tax situation, you can always enter the data directly into the forms.

The online version of TurboTax is segmented to maximize Intuit's profits. Schedule D is not available in Deluxe, so you may need Premier: https://turbotax.intuit.com/personal-ta ... #tax-forms

However, if all of your capital gains are from distributions and covered shares, then you may not have to file a Schedule D.

Edit: Explained that Schedule D may not be needed for covered shares.
I’ve always used the downloaded version. I don’t want our information stored on the cloud.
If you efile they already store it "on the cloud". Even if you don't efile, the downloaded software is constantly calling home so unless you're blocking it with a firewall, who knows what information they're storing.
I envisioned that TurboTax was just passing it through to the IRS, and not storing the return (except maybe temporarily.

But admittedly that was just an assumption.
They're required to store it for (I think) 3 years, maybe longer.
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Re: Using Turbo Tax for the first time how long would it take you to do one brokerage and one credit union?

Post by Katietsu »

hachiko wrote: Sun May 16, 2021 4:14 pm
I envisioned that TurboTax was just passing it through to the IRS, and not storing the return (except maybe temporarily.

But admittedly that was just an assumption.
They're required to store it for (I think) 3 years, maybe longer.
Any e-file provider is required by the IRS to store the file for three years. Though, I always guessed that it would be archived somewhere and not as open to fraudulent access as the data entered into the online program.
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Re: Using Turbo Tax for the first time how long would it take you to do one brokerage and one credit union?

Post by talzara »

hachiko wrote: Sun May 16, 2021 4:14 pm They're required to store it for (I think) 3 years, maybe longer.
Katietsu wrote: Sun May 16, 2021 5:12 pm Any e-file provider is required by the IRS to store the file for three years. Though, I always guessed that it would be archived somewhere and not as open to fraudulent access as the data entered into the online program.
Do you have an official source for the 3 year storage requirement?

Tax preparers are required to store returns for 3 years. (IRC § 6107) However, Intuit is not a tax preparer. If you use the installed version of TurboTax, Intuit is acting as an e-file transmitter. There are different retention requirements for transmitters, but I haven't been able to find out what they are.
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Re: Using Turbo Tax for the first time how long would it take you to do one brokerage and one credit union?

Post by delamer »

Katietsu wrote: Sun May 16, 2021 5:12 pm
hachiko wrote: Sun May 16, 2021 4:14 pm
I envisioned that TurboTax was just passing it through to the IRS, and not storing the return (except maybe temporarily.

But admittedly that was just an assumption.
They're required to store it for (I think) 3 years, maybe longer.
Any e-file provider is required by the IRS to store the file for three years. Though, I always guessed that it would be archived somewhere and not as open to fraudulent access as the data entered into the online program.
So maybe I wasn’t totally offbase in avoiding the online program...
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MathWizard
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Re: Using Turbo Tax for the first time how long would it take you to do one brokerage and one credit union?

Post by MathWizard »

Deluxe works great for me.

1 state return,

I've had
American Opportunity Tax credit,
Dividends and Capital Gains
Royalties
K1 income from an LLC

The first time doing something takes me longer.
I'd say 3 hours total for me if there were new things,
plus 1 hour for my wife and I to review,
but I always look up things to ensure everything is correct.

Caveat on the time estimate:
I always have the documents ready (W2, 1099's) and I work at a table or desk. I used to fill out paper forms by hand with a printing calculator so I may have been more familiar with the tax code,
since I did not depend on a CPA
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iamblessed
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Re: Using Turbo Tax for the first time how long would it take you to do one brokerage and one credit union?

Post by iamblessed »

So Deluxe can handle a mutual fund sale?
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Re: Using Turbo Tax for the first time how long would it take you to do one brokerage and one credit union?

Post by RudyS »

iamblessed wrote: Sun May 16, 2021 8:53 pm So Deluxe can handle a mutual fund sale?
Yes. Similar to a stock sale.
Iorek
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Re: Using Turbo Tax for the first time how long would it take you to do one brokerage and one credit union?

Post by Iorek »

The ability to download 1099 info from a brokerage directly into turbotax is probably what saves me the most time.
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Re: Using Turbo Tax for the first time how long would it take you to do one brokerage and one credit union?

Post by hachiko »

talzara wrote: Sun May 16, 2021 5:50 pm
hachiko wrote: Sun May 16, 2021 4:14 pm They're required to store it for (I think) 3 years, maybe longer.
Katietsu wrote: Sun May 16, 2021 5:12 pm Any e-file provider is required by the IRS to store the file for three years. Though, I always guessed that it would be archived somewhere and not as open to fraudulent access as the data entered into the online program.
Do you have an official source for the 3 year storage requirement?

Tax preparers are required to store returns for 3 years. (IRC § 6107) However, Intuit is not a tax preparer. If you use the installed version of TurboTax, Intuit is acting as an e-file transmitter. There are different retention requirements for transmitters, but I haven't been able to find out what they are.
Oh, I meant the taxpayer's information (name, ssn, authorization to efile, etc), not the whole return. I'm not sure about the whole return. They obviously have to store the xml long enough for the IRS to issue an acceptance, but after that I'm not sure.

As for authority, I don't really know. They're an ERO, so there must be some information from the IRS about ERO requirements. It may not be statutory, but they have to be approved by the IRS, so it's possible the requirements stem from an agreement with the IRS.
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Re: Using Turbo Tax for the first time how long would it take you to do one brokerage and one credit union?

Post by Jablean »

If it's bank accounts and some mutual funds you'll spend much more time just putting in your name, street address, and banking info. My bank all comes on one form and Fidelity is downloadable into TurboTax.

Things to remember - TT asks lots of questions that you've never heard of - so you'll just skip past or answer no. And it's going to ask you "Don't you want to upgrade? It really will be better etc etc" Say no. Maybe if you were a day trader.
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Re: Using Tubro Tax for the first time how long would it take you to do one brokerage and one credit union?

Post by CardinalRule »

Colorado Guy wrote: Sun May 16, 2021 2:46 pm
delamer wrote: Sun May 16, 2021 2:30 pm Federal e-filing is free, but it costs $24.95 (if memory serves) to e-file your state return. So I always print our state return and mail it in.
FYI. I assume your state may have an option similar to mine. I used TurboTax to calculate my federal and state taxes and refunds, ensuring they matched. While I then filed my federal with Turbotax, I could have filed my state's tax electronically on the state's tax site for free, using the numbers generated from Turbotax. That avoids the Turbotax $25 fee, plus avoid any potential mail delays.
That's interesting. I did taxes for my elderly parents in Arizona and assumed they would have to mail the return in to avoid the TurboTax fee. But after reading your post, I looked and saw that Arizona has a Free File option, which includes various vendors, including TurboTax. For Arizona, this option has a very low AGI threshold, but it looks like they will just squeeze in under this. :beer

https://azdor.gov/e-services/free-elect ... ndividuals

Regarding the OP's question, it probably took 45 minutes for my parents' federal simple return (1040-SR), which included a couple of mutual fund sales and a stock sale, and maybe 15 minutes for the state. That was on Deluxe, and with me going slowly and carefully... As someone else mentioned, next year will be even faster for you with the history and information that TurboTax will import from the 2020 file.
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Re: Using Turbo Tax for the first time how long would it take you to do one brokerage and one credit union?

Post by CardinalRule »

Edit to my post above. I actually used Premier, because I got it for free from Fidelity.

But Deluxe would have absolutely been sufficient, for both my return and my parents' return.
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Re: Using Turbo Tax for the first time how long would it take you to do one brokerage and one credit union?

Post by Katietsu »

hachiko wrote: Sun May 16, 2021 10:44 pm
talzara wrote: Sun May 16, 2021 5:50 pm
hachiko wrote: Sun May 16, 2021 4:14 pm They're required to store it for (I think) 3 years, maybe longer.
Katietsu wrote: Sun May 16, 2021 5:12 pm Any e-file provider is required by the IRS to store the file for three years. Though, I always guessed that it would be archived somewhere and not as open to fraudulent access as the data entered into the online program.
Do you have an official source for the 3 year storage requirement?

Tax preparers are required to store returns for 3 years. (IRC § 6107) However, Intuit is not a tax preparer. If you use the installed version of TurboTax, Intuit is acting as an e-file transmitter. There are different retention requirements for transmitters, but I haven't been able to find out what they are.
Oh, I meant the taxpayer's information (name, ssn, authorization to efile, etc), not the whole return. I'm not sure about the whole return. They obviously have to store the xml long enough for the IRS to issue an acceptance, but after that I'm not sure.

As for authority, I don't really know. They're an ERO, so there must be some information from the IRS about ERO requirements. It may not be statutory, but they have to be approved by the IRS, so it's possible the requirements stem from an agreement with the IRS.
This question has me doubting myself a bit, so I hope my statement is accurate. As hachiko stated, my understanding is that Turbotax is not just a transmitter but is also acting as an authorized e-file provider. Publication 1345 lists the requirements for Authorized Efile Providers, including retention requirements.
pshonore
Posts: 7228
Joined: Sun Jun 28, 2009 2:21 pm

Re: Using Turbo Tax for the first time how long would it take you to do one brokerage and one credit union?

Post by pshonore »

Katietsu wrote: Mon May 17, 2021 9:16 am
hachiko wrote: Sun May 16, 2021 10:44 pm
talzara wrote: Sun May 16, 2021 5:50 pm
hachiko wrote: Sun May 16, 2021 4:14 pm They're required to store it for (I think) 3 years, maybe longer.
Katietsu wrote: Sun May 16, 2021 5:12 pm Any e-file provider is required by the IRS to store the file for three years. Though, I always guessed that it would be archived somewhere and not as open to fraudulent access as the data entered into the online program.
Do you have an official source for the 3 year storage requirement?

Tax preparers are required to store returns for 3 years. (IRC § 6107) However, Intuit is not a tax preparer. If you use the installed version of TurboTax, Intuit is acting as an e-file transmitter. There are different retention requirements for transmitters, but I haven't been able to find out what they are.
Oh, I meant the taxpayer's information (name, ssn, authorization to efile, etc), not the whole return. I'm not sure about the whole return. They obviously have to store the xml long enough for the IRS to issue an acceptance, but after that I'm not sure.

As for authority, I don't really know. They're an ERO, so there must be some information from the IRS about ERO requirements. It may not be statutory, but they have to be approved by the IRS, so it's possible the requirements stem from an agreement with the IRS.
This question has me doubting myself a bit, so I hope my statement is accurate. As hachiko stated, my understanding is that Turbotax is not just a transmitter but is also acting as an authorized e-file provider. Publication 1345 lists the requirements for Authorized Efile Providers, including retention requirements.
I always thought TT was an efile originator Perhaps they are many things. Pub 1345 describes an ERO as:
Electronic Return Originator (ERO) - An Authorized IRS e-file Provider that originates the electronic
submission of returns to the IRS.
Katietsu
Posts: 4953
Joined: Sun Sep 22, 2013 1:48 am

Re: Using Turbo Tax for the first time how long would it take you to do one brokerage and one credit union?

Post by Katietsu »

pshonore wrote: Mon May 17, 2021 9:28 am
Katietsu wrote: Mon May 17, 2021 9:16 am
hachiko wrote: Sun May 16, 2021 10:44 pm
talzara wrote: Sun May 16, 2021 5:50 pm
hachiko wrote: Sun May 16, 2021 4:14 pm They're required to store it for (I think) 3 years, maybe longer.
Katietsu wrote: Sun May 16, 2021 5:12 pm Any e-file provider is required by the IRS to store the file for three years. Though, I always guessed that it would be archived somewhere and not as open to fraudulent access as the data entered into the online program.
Do you have an official source for the 3 year storage requirement?

Tax preparers are required to store returns for 3 years. (IRC § 6107) However, Intuit is not a tax preparer. If you use the installed version of TurboTax, Intuit is acting as an e-file transmitter. There are different retention requirements for transmitters, but I haven't been able to find out what they are.
Oh, I meant the taxpayer's information (name, ssn, authorization to efile, etc), not the whole return. I'm not sure about the whole return. They obviously have to store the xml long enough for the IRS to issue an acceptance, but after that I'm not sure.

As for authority, I don't really know. They're an ERO, so there must be some information from the IRS about ERO requirements. It may not be statutory, but they have to be approved by the IRS, so it's possible the requirements stem from an agreement with the IRS.
This question has me doubting myself a bit, so I hope my statement is accurate. As hachiko stated, my understanding is that Turbotax is not just a transmitter but is also acting as an authorized e-file provider. Publication 1345 lists the requirements for Authorized Efile Providers, including retention requirements.
I always thought TT was an efile originator Perhaps they are many things. Pub 1345 describes an ERO as:
Electronic Return Originator (ERO) - An Authorized IRS e-file Provider that originates the electronic
submission of returns to the IRS.
Correct. I should have been more precise. There are multiple categories of E-File Providers, eg ERO, transmitter, software developer. Turbotax would be approved and provide service in multiple categories. The ERO category would be relevant to this conversation. But the operation and interaction of Turbotax with the IRS is definitely out of my league.
talzara
Posts: 1693
Joined: Thu Feb 12, 2009 7:40 pm

Re: Using Turbo Tax for the first time how long would it take you to do one brokerage and one credit union?

Post by talzara »

iamblessed wrote: Sun May 16, 2021 8:53 pm So Deluxe can handle a mutual fund sale?
Only the installed version of TurboTax Deluxe can handle a mutual fund sale.

The online version of TurboTax Deluxe cannot handle individual mutual fund sales since it does not have Schedule D. It should be able to report the total of all mutual fund sales on form 1040.
talzara
Posts: 1693
Joined: Thu Feb 12, 2009 7:40 pm

Re: Using Turbo Tax for the first time how long would it take you to do one brokerage and one credit union?

Post by talzara »

MathWizard wrote: Sun May 16, 2021 7:21 pm Deluxe works great for me.

1 state return,

I've had
American Opportunity Tax credit,
Dividends and Capital Gains
Royalties
K1 income from an LLC
This is another difference between the installed version and the online version of TurboTax.

The installed version of TurboTax Deluxe can prepare this return.

The online version of TurboTax Deluxe cannot prepare this return since it does not have Schedule E.
talzara
Posts: 1693
Joined: Thu Feb 12, 2009 7:40 pm

Re: Using Turbo Tax for the first time how long would it take you to do one brokerage and one credit union?

Post by talzara »

Katietsu wrote: Mon May 17, 2021 9:16 am This question has me doubting myself a bit, so I hope my statement is accurate. As hachiko stated, my understanding is that Turbotax is not just a transmitter but is also acting as an authorized e-file provider. Publication 1345 lists the requirements for Authorized Efile Providers, including retention requirements.
Publication 1345 says that EROs have to retain forms 8878 and 8879 for three years. It does not say that e-file providers must retain the whole return for three years.
The ERO must retain Forms 8878 and 8879 for three years from the return due date or the IRS received
date, whichever is later.

https://www.irs.gov/pub/irs-pdf/p1345.pdf
Katietsu
Posts: 4953
Joined: Sun Sep 22, 2013 1:48 am

Re: Using Turbo Tax for the first time how long would it take you to do one brokerage and one credit union?

Post by Katietsu »

talzara wrote: Mon May 17, 2021 11:14 am
Katietsu wrote: Mon May 17, 2021 9:16 am This question has me doubting myself a bit, so I hope my statement is accurate. As hachiko stated, my understanding is that Turbotax is not just a transmitter but is also acting as an authorized e-file provider. Publication 1345 lists the requirements for Authorized Efile Providers, including retention requirements.
Publication 1345 says that EROs have to retain forms 8878 and 8879 for three years. It does not say that e-file providers must retain the whole return for three years.
The ERO must retain Forms 8878 and 8879 for three years from the return due date or the IRS received
date, whichever is later.

https://www.irs.gov/pub/irs-pdf/p1345.pdf
You are right. I see now that the retention requirements for the entire electronic file has a different time period specified, namely the end of the calendar year. Here is the section from the 1345:

ERO Duties After Submitting the Return to the IRS
Record Keeping and Documentation Requirements
EROs must retain the following material until the end of the calendar year at the business address from which it originated the return or at a location that allows the ERO to readily access the material as it must be available at the time of IRS request. An ERO may retain the required records at the business address of the Responsible Official or at a location that allows the Responsible Official to readily access the material during any period of time the office is closed, as it must be available at the time of IRS request through the end of the calendar year.
• A copy of Form 8453, U.S. Individual Income Tax Transmittal for an IRS e-file Return, and supporting documents that are not included in the electronic records submitted to the IRS;
• Copies of Forms W-2, W-2G and 1099-R;
• A copy of signed IRS e-file consent to disclosure forms;
A complete copy of the electronic portion of the return that can be readily and accurately converted into an electronic transmission that the IRS can process; and
• The acknowledgment file for IRS accepted returns.
Forms 8879 and 8878 must be available to the IRS in the same manner described above for three years from the due date of the return or the IRS received date, whichever is later. The Submission ID must be associated with Form 8879 and 8878:
• The Submission ID can be added to the Form 8879 and 8878 or
• the acknowledgment containing the Submission ID can be associated with Forms 8879 and 8878.
• If the acknowledgment is used to identify the Submission ID, the acknowledgment must be kept in accordance with published retention requirements for Forms 8879 and 8878. The acknowledgment is not required to be physically attached to Form 8879 and 8878; it can be electronically stored.
Topic Author
iamblessed
Posts: 1083
Joined: Sat Jun 09, 2018 11:52 am
Location: St. Louis

Re: Using Turbo Tax for the first time how long would it take you to do one brokerage and one credit union?

Post by iamblessed »

Thanks everybody.
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