SAN DIEGO – Nov. 29, 2010 – As Congress debates the future of expiring tax cuts, TurboTax® from Intuit Inc. (Nasdaq: INTU), the nation’s best-selling tax software, is prepared to accurately and easily guide taxpayers through these pending changes.
“Taxpayers are confused by the current uncertainty, and TurboTax will help them navigate through late-breaking changes, no matter what Congress decides,” said Bob Meighan, CPA and vice president of TurboTax. “TurboTax is prepared for several possible scenarios and then can flip the switch when Congress acts. We’ll be ready when people are ready to file so they can be confident they’re getting their biggest possible refund.”
A recent online poll of TurboTax customers shows that while awareness of the expiring tax cuts is high, understanding the true impact of these changes is low. About 65 percent of those surveyed say they don’t know how these changes could impact their 2010 taxes.
The majority of those responding (70 percent) say they are not making any changes to their year-end tax planning as a result of these pending changes. More than half (58 percent) said they are most concerned about the expiring tax cuts, with 14 percent expressing most concern about the Alternative Minimum Tax, or AMT.
AMT, Tax Cuts Set to Expire
House and Senate tax writing committees have pledged to “do everything possible” to adjust the existing AMT laws so that no additional taxpayers are affected. However, tax bills will rise for an estimated 25 million Americans if Congress fails to act, a dramatic increase over the 4 million taxpayers today facing the AMT.
The fate of several tax credits associated with AMT are also in question, including the child and dependent care credit and the earned income tax credit for low and middle-income workers.
Additionally, Bush-era tax cuts are set to expire at the end of this year. Without Congressional action, personal income tax rates will go up across all income brackets. Taxpayers earning dividends, such as retirees, will see the tax rate on dividends increase and the marriage penalty will once again raise the tax rate on families.
However, if all the current expiring cuts are extended by Congress, the cost will add $3.7 trillion to the national deficit over 10 years according to the Treasury Department. While Congress and the White House wrestle with these difficult economic choices as the expiration deadline looms, taxpayers can rest assured that TurboTax will be ready to simplify tax preparation.
Automatically Updated
TurboTax is already prepared to handle multiple scenarios. When Congress does act, TurboTax Online will be automatically updated to reflect the most current tax laws. TurboTax desktop software customers can use the easy, One Click Update to get the most up-to-date tax forms before they file.
“No other tax service or software can get you your refund faster,” said Meighan.”So there’s no need to delay starting your tax return with TurboTax.”
For the latest information on expiring tax cuts and smart year-end tax tips, visit Tax Break, the TurboTax blog.
About TurboTax
TurboTax is the nation’s No. 1 rated, best-selling, do-it-yourself tax preparation software. Available on desktop, online and mobile, TurboTax helps more than 20 million people a year easily and accurately claim every deduction and credit they’re entitled to, so they get their biggest tax refund possible. For more information, visit the TurboTax press room.
About Intuit
Intuit Inc. is a leading provider of business and financial management solutions for small and mid-sized businesses; financial institutions, including banks and credit unions; consumers and accounting professionals. Its flagship products and services, including QuickBooks®, Quicken® and TurboTax®, simplify small business management and payroll processing, personal finance, and tax preparation and filing. ProSeries® and Lacerte® are Intuit’s leading tax preparation offerings for professional accountants. Intuit Financial Services helps banks and credit unions grow by providing on-demand solutions and services that make it easier for consumers and businesses to manage their money.
Founded in 1983, Intuit had annual revenue of $3.5 billion in its fiscal year 2010. The company has approximately 7,700 employees with major offices in the United States, Canada, the United Kingdom, India and other locations. More information can be found at www.intuit.com.
Intuit, the Intuit logo and TurboTax, among others, are registered trademarks and/or registered service marks of Intuit Inc. in the United States and other countries.