Who prepares and submits their annual income tax returns manually nowadays? With the advent of computers, and especially with various software for automating and easing the encoding and preparation of financial and tax data, manual computations are rarely needed. The more common decision to make when tax-time comes really just boils down to one-which software to use.
If there is one thing one must check when selecting accounting software, it is absolutely necessary that the software contains facilities for easing the exchange of information between its internal stores and other external programs. With tax data, ordinary importing and exporting of raw financial data is not enough. The software has to allow the import/export of tax data in the TXF format. This is of critical importance today, especially if you or your organization has plans of retaining the services of a tax accounting firm, or a web-based tax returns computation service.
TXF stands for Tax Exchange Format (TXF). The TXF standard of storing one's tax data is an accepted method for storing tax-related information. What does it mean to the user? It means that the any program that complies with and uses this standard allows the user to save time in preparing and re-encoding the same tax information. All one needs to do is to export your tax information from the accounting software you use, then import it into the tax computation software or send it to the firm or web service via compact disc or email, as the case may be. Other than the time you save by doing this, the likelihood of encountering clerical errors during the transfer of the tax information is eliminated.
Turbo Tax is one such application that recognizes the TXF format. Aside from being the number one best-selling tax preparation software in the US, the company that owns the software also has an online service that allows you to file your tax returns online. Whether you use the software or the service, you will definitely need to know how to transfer and import data to and from your tax returns in Turbo Tax. The instructions below will guide you through the process you need to go through each and every time.
To Transfer Tax Data from Turbo Tax
- In Turbo Tax, select and click My Return, then click on Continue.
- Select and click Transfer From Last Year.
- Now find the previously generated tax file, then click on Transfer Selected Return.
At this point, review the information that is about to be transferred.
To transfer/Import Tax Data into Turbo Tax
- Click Personal Info on the top menu of Turbo Tax.
- Select and click on Import in the pop-up menu that appears.
- Select and click the name of your financial software. If it is not in the list, select and click Other Financial Software.
- Select and click Import Now. Choose the appropriate TXF file to be imported then click Open.
From manually writing down and going through reams and reams of paper to just typing at a keyboard daily, then clicking some keys, tax computations and filing have finally arrived. You have no reason to fear receiving an IRS inquiry because of late tax returns again!