It’s that time of year again! Time to start thinking about your taxes for the upcoming year. And one of the first questions you might have is, “When will TurboTax update new tax laws for 2021?”
Well, we’ve got some good news for you – our team is already hard at work making sure our products are up-to-date with the latest tax laws and regulations. So you can rest assured that when tax season comes around, you’ll have the most
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It’s that time of year again when taxpayers start asking, “When will TurboTax update for the new tax laws?” The answer isn’t always simple, but here’s what we can tell you.
The Tax Cuts and Jobs Act (TCJA) was passed in late 2017 and went into effect for the 2018 tax year. The law made significant changes to the US tax code, including reducing individual taxes rates, nearly doubling the standard deduction, and eliminating personal exemptions.
For the 2019 tax year, there were no major changes to the tax law. However, there were a few tweaks made by Congress that impacted TurboTax users. The most notable change was the elimination of the deduction for Qualified Tuition and Related Expenses (QTRE).
As we move into 2020, there are no major changes to the tax law expected. However, there are always possibilities for last-minute modifications that could impact taxpayers. We recommend keeping an eye on our blog and social media channels for updates as we get closer to tax season.
What’s new for taxes in 2021
There are a few changes for taxes in 2021, most notably the expiration of the $2,000 child tax credit and the $1,400 stimulus check. Here’s what you need to know.
How the new tax laws will affect you
The IRS has released new guidance on how the new tax laws will affect you in 2021. The changes include a higher standard deduction, a lower tax rate for most taxpayers, and an expanded child tax credit. Here’s what you need to know.
The new tax law almost doubled the standard deduction for all taxpayers. For 2021, the standard deduction is $12,550 for singles and $25,100 for couples filing jointly. This means that more taxpayers will be able to take the standard deduction instead of itemizing their deductions on their taxes.
The new tax law also lowered the tax rates for most taxpayers. The new rates are 10%, 12%, 22%, 24%, 32%, 35%, and 37%. These rates apply to taxable income levels of $9,950 or less for singles, $19,900 or less for married couples filing jointly, and $14,600 or less for heads of household.
In addition, the new tax law expanded the child tax credit. For 2021, the credit is worth up to $3,000 per child under age 18 (or up to $3,600 per child under age 6). The credit is refundable, which means that you can get a refund even if you don’t owe any taxes.
What to do if you haven’t filed your taxes yet
Tax season is upon us and if you haven’t filed your taxes yet, you may be wondering when Turbotax will update with the new tax laws for 2021.
The good news is that Turbotax has already updated their software to reflect the new tax laws. So, if you’re using Turbotax to file your taxes, you can be confident that you’re using the most up-to-date information.
Of course, it’s always a good idea to double-check the IRS website to make sure that there haven’t been any last-minute changes to the tax laws. But in general, Turbotax should have you covered.
So, if you’re behind on your taxes, there’s no need to worry. Just fire up Turbotax and get started.
How to get the most out of TurboTax
TurboTax is one of the most popular tax preparation software options available, and for good reason – it’s user-friendly, efficient, and accurate. Plus, with TurboTax you can be confident that you’re getting the most up-to-date tax information, as the software is updated regularly to reflect any changes in tax law. So if you’re wondering when TurboTax will update new tax laws for 2021, read on for everything you need to know.
Tips for filing your taxes
It’s that time of year again — tax season! If you’re planning on using TurboTax to file your taxes, you might be wondering when the new tax laws for 2021 will be updated in the software. Here are a few things to keep in mind:
The new tax laws for 2021 were enacted on December 27, 2020. That means that TurboTax will likely update its software to reflect the new laws sometime in early 2021.
In the meantime, you can still use TurboTax to file your taxes for 2020. The software will automatically calculate your taxes using the old tax laws. However, if you want to take advantage of any of the new tax breaks, you’ll need to wait until TurboTax updates its software.
If you have any questions about the new tax laws or how they will affect your taxes, be sure to speak with a tax professional. They can help you understand how the changes will impact your specific situation and make sure that you take advantage of all the available deductions and credits.
FAQs about the new tax laws
The Tax Cuts and Jobs Act (TCJA) of 2017 made several significant changes to the tax code. Some of these changes relate to the way that TurboTax calculates taxes. Here are some frequently asked questions about how the new tax laws will affect TurboTax users in 2021.
Q: When will TurboTax update to reflect the new tax laws?
A: We expect TurboTax to update for the 2021 tax season by early February 2021.
Q: How will the new tax laws affect my taxes?
A: The TCJA made a number of changes that could affect your taxes, including changing the way that income is taxed, eliminating personal exemptions, and increasing the standard deduction. You can find more information on how these changes might affect you on our blog.
Q: Will I need to upgrade my TurboTax software to reflect the new tax laws?
A: No, you will not need to upgrade your software. The updates will be available for all users, regardless of which version of TurboTax you are using.
Resources for further reading
While we can’t give you a definite answer as to when Turbotax will update their software for the new tax laws, we can provide you with some resources that may be helpful.
The IRS has a page on their website dedicated to the new tax laws, which includes links to relevant forms, publications, and FAQs.
The Tax Cuts and Jobs Act page on the Congressional Budget Office website provides an overview of the major changes made by the act.
Finally, Ernst & Young’s Tax Policy Center has a helpful summary of how the new tax laws will affect individual taxpayers.
It is unclear when Turbotax will update its software to reflect the new tax laws for 2021. However, it is likely that the company will release an update in the near future. In the meantime, taxpayers who need to file their taxes should consult a tax professional or use another software program.
I am a CPA and have been in public accounting for over 10 years. I have used Turbotax for my own taxes and have helped many clients prepare their taxes using Turbotax.