TurboTax Premier Tax Software - The Right Choice For Investments!

Investment Taxation Tips For The 2019 - 2020 Tax Season

As investment minded tax filers, your tax preparation is naturally going to be more complicated. On top of that, every year or so we have to deal with the U.S. governments inept congressional capabilities in dealing with the renewals of temporary tax provisions.

Recent years have shown that this dysfunctional entity would rather let tax laws expire and then spend their time bickering over how and what to renew retroactively.

The sad part here is that congress really does NOT care who or how bad they harm American consumers in the process. A clear example of this recently came into play with the American Taxpayer Relief Act also known as the "fiscal cliff" tax bill. Unfortunately we can expect a replay of this disaster in 2014.

There are fifty-five tax provisions that are set to expire on Dec. 31, 2013. The government could reap billions of dollars in additional taxes by letting many of these tax provisions remain expired. This would mean, that taxpayers would lose popular tax breaks like itemized deductions for state and local sales taxes, as well as above-the-line deductions for education fees and out-of-pocket educator classroom expenses.

With that said, it's important to choose investment tax software that can handle the ups and downs of tax law changes.

Premier Premium Tax Software Comparison

Online Tax Preparation Software

Download / CD PC Software

Software Brand




Brief Description

TurboTax Premier

#1 best selling: Rated Best Investment Minded Tax Software Brand!

HR Block Premium

#2 top selling: Rental Property, Investments, Business Deductions.

Wealthy Tax Payers To Pay More!

Wealthy filers can pretty much expect to pay more taxes due to the American Taxpayer Relief Act of 2012 that will rear its head in 2013.

With the new top tier ordinary tax rate of 39.6 percent, tax filers with taxable income of more than $400,000 ($450,000 for married filing jointly), could face added taxes over and above this new tax rate.

With a new net investment income tax of 3.8 percent, (the Medicare surtax that goes toward health coverage older Americans), tax filers with modified adjusted gross income or net investment income, "whichever is lower", that is more than $200,000 for single taxpayer or $250,000 for married filing jointly may be subjected to this additional tax.

On top of that, single taxpayers making over $250,000 and jointly filers making over $300,000 will experience reduced personal exemptions and itemized deductions to boot.

Get Your Wise Man Tax Tips Here!

Due to these tax law changes that are taking effect in 2013, upper-income households face higher tax rates on investment earnings. In turn a larger share of investment earnings will be forked over to Uncle Sam.

So now is the time to take advantage of tax-deferred investment opportunity retirement plans like an IRA or 401(k).

Tax rate increases for taxpayers with modified adjusted gross incomes (AGIs) above $400,000 ($450,000 joint filers), are subject to the maximum qualified dividend and long-term capital gains tax of 20% for 2013. Investors in tax brackets below that threshold are still required to pay the existing AGI 15% tax rate. On top of these rates, you have the previously mentioned 3.8% Medicare tax on net investment income.

Mutual Fund Buyer Beware

If mutual funds are held in a taxable account, long-term and/or short-term capital gains, dividends, and interest distributions are taxable for shareholders, even if these distributions are reinvested in new shares.

While investors may incur taxes from selling mutual fund shares for a profit, it's wise to be aware of upcoming distributions so that you don’t incur unnecessary taxes on gains you didn’t participate in.

Lower Taxes By Claiming Your Deductions

Claiming the simplified home office deduction seems to be a good fit for many workers that were prompted by the recession to start their own businesses that may be operated from home. The IRS now offers a simplified home office deduction for 2019 - 2020. This optional deduction of $5 per square foot of home office space is good for up to a maximum of 300 square feet. This equates to a $1,500 annual home office deduction. As an alternative to filling out Form 8829, you can now use a worksheet from the Schedule C instruction book to enter your simplified home-office deduction on your Schedule C. While the new deduction option will be welcomed by many, note the office space must be used exclusively on a regular basis for business purposes.

Recaps Of Our Investor Tax Software Reviews

TurboTax Premier took our top investor software spot as expected so this was no surprise. Fact be told, the TurboTax Premier Edition is a well formatted tax preparation product that helps investors and self employed tax filers take advantage of tax breaks that fit into this category. This product made the grade when it came to investment guidance and support.

H&R Block At Home Premium is our second choice, although we found it to be a close competitor for the top spot. HR Block Premium offers advanced guidance for schedule C business deduction support as well as schedule E rental property income. Ad to that their first in line free tax advice and technical support and you have a product that can keep up with the Joneses.

The tax services we reviewed provided very good federal tax preparation guidance that is initiated with an interview process and followed up by step-by-step guided tax preparation in simple plain English.

Their good choices to help you minimize taxable income!