What does TurboTax have to do with Internet Marketing? Nothing. But it has a lot to do with how you’re keeping track of your business if you’re like me and use it.
I’ll admit it. I used to be a complete and total tax illiterate. My mom filed taxes for me until the day she died (I was 31 years old), and then I hired an accountant because I had NO idea what to do.
I started my first business in 1999. Since then, I’ve learned a ton about how to do taxes and I’ve become fairly proficient compared to my pre-business days. But what I wanted to talk about today is something I recently learned about TurboTax that’s costing me a lot of time (and by default a lot of money).
I’ve used TurboTax for my own taxes, my son’s taxes, and even for a few friends. Most recently, I filed an amended 2009 return that had a Net Operating Loss (NOL). The IRS sent a note asking for additional documentation to either carry back the loss or provide an exception as to why the loss should be carried forward.
In order to take care of the paperwork, I now have to amend the 2007 return. Then, if the NOL isn’t absorbed there, the 2008 will have to be amended. If the NOL isn’t absorbed there, the amended returns, along with a statement stating why the NOL can’t be carried back, must be sent to the IRS to show why it’s going to be carried forward instead. Then I’ll have to amend the 2010 return.
So, back to the point of this post. When I found out the 2009 had to be amended, I also found out that I had saved the PDF version of the original return, but not the .tax2009 file. There’s never been anything in TurboTax that said there was an additional file to save and there should be. This is a vital piece of information!
In order to amend the return, I had to get the laptop version of the 2009 software and completely recreate the original return. THAT’S how I found out there was an additional file to be saved…just a bit late I’m thinking!
I saved the .tax2010 file so it wouldn’t happen again. I also bought the software for my computer so I have it. But because I have to file an amended 2007 & possibly a 2008, both will have to be re-created before I can amend. LOTS of time loss.
THAT’S why I’m writing this. If you’re newly starting a business, or you’re newly using TurboTax, make sure you save the .tax20xx file when you’re done. I’d also suggest buying the software and doing it on your own computer rather than using their online software. It costs a whole lot less to buy it that way, you have complete control over your files and, if for some reason you have to amend down the road, you have all the required files to make is as fast and painless as possible.
In conclusion, I love TurboTax…but there should REALLY be more emphasis on saving files for future use!