FAQ: The First-Time Investor’s Guide to Filing Your Taxes in 2021

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The arrival of spring means that warm weather and sunny days are on the horizon. But those aren’t the only things on the horizon: The tax filing deadline is also just around the corner.

If 2020 was the year that you first decided to try your hand at investing — whether through an investing app, a cryptocurrency exchange or a traditional brokerage firm — filing your taxes is going to be a bit more complicated than in years past.

Figuring out your correct tax rate can be a time-consuming process, and knowing which forms you need will vary depending on how you invested: Did you earn income through a capital gain, dividend or security? Was it an individual investment, or did you invest through a fund? Did you sell any property? What if you keep assets in a cryptocurrency wallet?

If you want to file your taxes confident that your investment tax reporting is in order, you’re going to need a reliable tax preparation service. Fortunately, TurboTax Premier was built for investors like you.

In this guide, we’ll cover:

  • TurboTax Premier for Investors
  • How To Get Live Assistance with Your Taxes Online
  • Frequently Asked Questions About Filing Your 2020 Taxes, State and Federal Deadlines, and Cryptocurrency Assets
  

TurboTax Premier for First-Time Investors

Easy enough for stock market newbies to use, but powerful enough for seasoned traders, TurboTax Premier is the total package for investors of all stripes.

Capable of handling up to 1,500 transactions from more than 300 participating financial institutions and trading platforms, TurboTax Premier offers peace of mind that your investment income reporting will be accurate and your deductions are maximized. If you’re determined not to pay a single penny that you don’t have to, then this is the service for you.

TurboTax Premier can automatically import your income and investment tax forms and will walk you through the entire filing process step-by-step.

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And whether you bought individual stocks, put money into a mutual fund, purchased employee stock or invested in property, TurboTax Premier is built to handle it all.

TurboTax Premier also makes sure that you’re saving as much money as possible. To that end, TurboTax will analyze your financial situation and search for more than 400 potential tax deductions to see what you’re eligible for. If you’re eligible for even the most obscure of deductions — from home office expenses and dental care to mortgage insurance and rental property deductions — TurboTax Premier will uncover it for you.

Of course, nobody’s finances are exactly the same, and some are more complicated than others. For these scenarios, there’s TurboTax Live Premier.

  

For a More Personalized Touch, Try TurboTax Live Premier

If you want one-on-one assistance to make sure that you didn’t provide any wrong information, or that you’re keeping as much of your hard-earned money as possible, then TurboTax has a solution.

TurboTax Live Premier will connect you directly with a tax expert to understand your unique situation, provide in-depth insights on how your investments impact your taxes and answer any questions you have. Even better, these experts are available to offer you unlimited tax advice all year round.

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And if you don’t want to deal with your taxes at all, you can also have a tax expert do your taxes for you from start to finish with TurboTax Live Premier Full Service.

With TurboTax Live Premier, you can:

  • Click to connect with tax experts via one-way video (you can see them, they can’t see you)
  • Get professional tax filing assistance without leaving your house
  • Start and stop your taxes on iOS and Android phones, tablets and computers at your convenience

This is just scratching the surface of what TurboTax Live Premier can do for you. For more information on the benefits of TurboTax Live Premier, click here.

  

When Is the Federal Tax Deadline in 2021?

Now that you have the inside scoop on why TurboTax Premier is the best tax prep solution for your needs, the only thing left to do is actually get started. And as you put together a plan, you’ll also want to make a note of the changes to tax filing deadlines for 2021, which are a bit all over the place. First, some good news.

The IRS federal tax filing deadline has been extended for tax year 2020 from April 15 to May 17, 2021 for individual returns. However, state deadlines are a bit more complicated, with most but not all states pushing their deadlines back. Different states have different deadlines, and a few have stuck with the original April 15 deadline. And although the tax filing deadline has been extended for tax year 2020, the tax year 2021 quarterly estimated tax deadlines remain the same for the self-employed (April 15, 2021).

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What Is the Filing Deadline in my State?

So far, most states have extended their deadline to May 17 to keep in line with federal tax day. However, some states have not announced any changes to the filing deadline yet.

To stay up to date please make sure to check the latest tax deadlines in the TurboTax Blog.

Do I Have To Pay Taxes on my Cryptocurrency?

The short answer? Yes, you do have to pay taxes on cryptocurrency assets.

If you invested in a cryptocurrency such as Bitcoin or Ethereum in 2020, then you will need to treat these digital currency as property in your tax filing. According to TurboTax, “If Bitcoin is held as a capital asset, you must treat them as property for tax purposes… Like stocks or bonds, any gain or loss from the sale or exchange of the asset is taxed as a capital gain or loss.”

The same goes for people who “mine” Bitcoin. If your mining activity results in earnings, you will need to determine the dollar value of your cryptocurrency on the day it came into your possession.

Can I Import Bitcoin Transaction Data Directly Into TurboTax?

Yes! TurboTax allows customers to import up to 250 transactions at a time from popular Bitcoin exchanges, saving you a ton of time in the process. The same goes for traditional investments, as TurboTax can automatically import 1500+ investment transactions from over 300 participating financial institutions. However, you will need to be a TurboTax Premier customer to take advantage of this service.

Do I Have To File My State and Federal Taxes at the Same Time?

Technically, you can file your state and federal tax returns separately. However, most people don’t want to have to file their taxes twice, so these returns are usually filed at the same time. If your state didn’t extend the tax filing deadline, it might be more convenient to file both of your 2020 tax returns on April 15.

(For the full rundown on state tax deadlines, be sure to check out TurboTax’s handy guide by clicking here.)

Don’t worry about knowing all the tax rules. If you have questions, it’s okay to ask for help. For instance, via TurboTax Live you can connect live via one-way video to a tax expert with an average of 12 years experience to get all of your tax questions answered. TurboTax Live tax experts are available in English and Spanish year-round and can even review, sign and file your tax return. You can also fully hand your taxes over to them, all without leaving your home.

Ready to get started? Click here to start filing your 2020 tax return with TurboTax Premier.