Fintech solutions providers and entrepreneurs are always trying to introduce new solutions for facilitating consumers.
From budgeting apps to online banking, online investment to tax filing, everything has been a fruit of efforts put in by the fintech entrepreneurs. Tax filing has become easier and simplified with advancements in technology.
Tax software and online platforms let users file their tax returns without diving into complicated rules and regulations.
Besides the e-filing at the national level, this software and solutions let the users understand the tax return filing requirements and do their own taxes.
These solutions have eliminated the need for accountants and professionals to tidy up the accounts of individuals and businesses.
Small businesses and individuals are majorly dependent on this online tax filing software. Besides, tax accountants and CPAs also use tax filing solutions as an aide during the busy tax season.
Turbotax is also tax software that conveniently lets users file their tax returns. This article will talk about how to file a tax return with TurboTax, what forms are required, and how you can remove a specific form 7202. So let’s get into it without further ado.
What Is TurboTax?
Turbotax is a product of Intuit to facilitate the taxpayers, CPAs, and businesses by giving a convenient method of filing returns backed by final expert review.
Intuit is not only behind Turbotax but much other software like Mailchimp, Mint, Quickbooks, etc., are also on its credit.
Turbotax has been there for decades, and it’s as old as the mid-1980s. In 2022, the software has earned the repute of top software for tax returns.
The clean interface, ease of use, interview method for tax deductions, and several products available within the suite are what make Turbotax unique.
You can answer different questions to make the right choices about tax deductions and get an expert review of the finalized return.
It wouldn’t be wrong to say that Turbotax has become a market leader as compared to other tax software like H & R Block, Cash App Taxes, etc.
The software has paid and free versions for the customers that they can choose from according to their requirements. The mobile app of Turbotax is also available that making it an even more convenient method for return filing.
How Can You File Tax Return With TurboTax?
As mentioned earlier, the tax software simplifies the process of filing tax returns for any individual or business entity.
Not only this, TurboTax makes refund processing faster for its customer. Once you have all the documents ready, the procedure is very easy.
Here are the simple steps to complete the e-filing of your tax return using TurboTax.
- Have all your documents with you and calculate the taxable income using the TurboTax form-based or questionnaire-based procedure.
- Prepare all the forms required for tax filing using the on-screen prompts and guidance.
- File your tax return, and it will usually take around 13 hours for the process to be completed.
You will benefit from using tax software over manual filing or hiring tax professionals. Once you have entered your information, you can use it years over the years by making a few amendments to data as required.
What Are Forms Commonly Required For Tax Filing?
Many people are unaware of what forms are commonly required for tax filing. Whether you’re filing an online return, manual filing, or hiring a professional, you will need the following forms during the process:
- Form W-2, Wage & Tax Statement
- Form 2-2G, Certain Gambling Winnings
- Form 1099-DIV, Dividends and Distributions
- Form 1099-INT, Interest Income
- Form 1099-MISC, Miscellaneous Income
- Form 1099-NEC, Nonemployee Compensation
- SSA-1099, Social Security Benefit Statement
- Form 1099-G, Certain Government Payments
- Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc.
- Schedule K-1, Partner’s or Shareholder’s Share of Income, Deductions, Credits, etc.
- Form 1098, Mortgage Interest Statement
- Form 1098-T, Tuition Statement
- Form 1098-E, Student Loan Interest Statement
There might be a need for additional forms for different filers. Form 7202 is also an example of such forms that self-employed individuals should submit to get sick and family leave credits.
How To Remove Form 7202 From TurboTax?
Many individuals have faced the issue of not being able to file tax returns. The reason is TurboTax saying you need to file Form 7202 for e-filing.
Many times Form 7202 is generated in TurboTax in response to answers you’ve given to the questions asked. For instance, if there was a qualified sick or family leave, the software might create the form.
If you’re sure that you don’t have to file Form 7202, you can remove it from TurboTax by following the simple procedure given below:
- Log in to your TurboTax Account from TurboTax online and go to the menu on the left side.
- Go to tax tools and select tools.
- Hit on Delete A Form. Once there, scroll down to find Form 7202. Select it> Delete>Delete Selected Form and Continue.
What Is Form 7202?
You already know how you can remove Form 7202 from TurboTax. However, it’s also important to understand what Form 7202 is.
Form 7202 is filed by qualified tax filers to get credits for sick leave or family leaves. It’s for certain self-employed individuals who are in the business of trade, partnership, or providing services.
Eligible self-employed individuals can claim the credits against qualified sick and family leave under the Families First Coronavirus Response Act. However, the qualification criteria are the most significant factor in eligibility for Form 7202.
The purpose of Form 7202 can be explained as giving credits against the refundable qualified sick and family leave that resulted in the inability to perform services as an eligible self-employed filer.
These credits are applicable to specific circumstances related to COVID-19 during the period from Jan 01, 2021, to Sept 30, 2021.
Every self-employed individual has to attach Form 7202. For those filing joint returns, both spouses must attach separate Form 7202 if they’re eligible.
Who Is Eligible To Claim Credit With Form 7202?
Let’s talk a bit about the eligibility criteria for claiming credit under Form 7202. There are two clauses that must be true for a self-employed individual to be qualified for a Tax credit under From 7202:
- The tax filer is involved in regular trade or business within the meaning of section 1402.
- The tax filer would be eligible if he were an employee of an employer(0ther than himself). He would have received the qualified sick leave wages under the Emergency Paid Sick Leave Act. He might be eligible for qualified family leave wages under the Emergency Family and Medical Leave Expansion Act.
Explanation of both criteria is very significant for understanding the eligibility.
Involved In Regular Trade Or Business
When the tax filer had been carrying out regular trade or business activities as a self-employed person or as described under 1402, or in partnership with someone. He will be eligible for credits under Form 7202.
Eligibility To Receive Qualified Leave Wages
The eligibility to receive qualified leave wages under the second clause is very complicated and binds to the IRS’s special considerations described as Part I, II, III, and IV.
- Part I—Credit for Sick Leave for Certain Self-Employed Individuals (Jan 1, 2021, Through Mar 31, 2021, Only)
- Part II—Credit for Family Leave for Certain Self-Employed Individuals (Jan 1, 2021, Through Mar 31, 2021, Only)
- Part III—Credit for Sick Leave for Certain Self-Employed Individuals (Apr 1, 2021, Through Sept 30, 2021, Only)
- Part IV—Credit for Family Leave for Certain Self-Employed Individuals (Apr 1, 2021, Through Sept 30, 2021, Only)
You can further check the eligibility under the second clause by visiting the instructions provided by IRS regarding Form 7202.
We have discussed what Form 7202 is and who requires filling this form when filing tax returns manually or using online software.
We have also explained the method of removing Form 7202 when filing a return using TurboTax. However, you should make sure that you don’t need to attach the form before deleting it from TurboTax.