TurboTax for Online Banking User Guide Ver. 1.0

TurboTax for Online Banking User Guide

1

Copyright Copyright © 2009 Intuit All rights reserved First printing, September 2009 STATEMENTS IN THIS DOCUMENT REGARDING THIRD-PARTY STANDARDS OR SOFTWARE ARE BASED ON INFORMATION MADE AVAILABLE BY THIRD PARTIES. INTUIT AND ITS AFFILIATES ARE NOT THE SOURCE OF SUCH INFORMATION AND HAVE NOT INDEPENDENTLY VERIFIED SUCH INFORMATION. THE INFORMATION IN THIS DOCUMENT IS SUBJECT TO CHANGE WITHOUT NOTICE.

Trademarks and Patents Intuit and the Intuit logo are registered trademarks and/or registered service marks of Intuit Inc. in the United States and other countries. Other parties’ trademarks or service marks are the property of their respective owners and should be treated as such. Features and services within QuickBooks products may be the subject matter of pending and issued U.S. patents assigned to Intuit Inc.

Important Terms, conditions, and features referenced in this document are subject to change without notice. If you should have any questions related to this product, financial institutions should contact Digital Insight Customer Support, while end users should contact their financial institution’s customer support.

TurboTax for Online Banking User Guide

Page

i

Contents 1 | Introduction .................................................................................................................. 3  2 | Getting Started .............................................................................................................. 4  New Users ............................................................................................................................ 5  Product Selection ........................................................................................................... 6  New or returning user..................................................................................................... 8  TurboTax Online ............................................................................................................ 9  Federal Taxes tab ......................................................................................................... 10  Print & Efile tab ............................................................................................................ 11  3 | Continuing the Tax Return .......................................................................................... 13  4 | Completing the Tax Return ......................................................................................... 14  5 | TurboTax FAQs ............................................................................................................ 15 

ii

TurboTax for Online Banking User Guide

1 | Introduction For Tax Year 2009, Digital Insight is introducing the availability of Turbo Tax Online via a Single-Sign-On from our Internet Banking platform to a majority of financial institutions on the DI IB platform. TurboTax Online Banking (TTOB) will make it possible for end users to log on to TTO via SSO and then deposit their refund automatically with minimal data entry or effort. TTOB will create a positive tax filing experience for end users by integrating Turbo Tax Online with Internet Banking and FinanceWorks products. Data from IFID’s products will migrate to Turbo Tax Online thereby eliminating some data entry for end users, resulting in an easier and speedier tax filing experience. Financial Institutions should benefit from increasing their deposit base by driving tax refund deposits through TTOB. Additionally, banks can use the integrated offerings and advanced financial tools that are available to attract and retain customers. With TTOB your end users can: • Complete their tax forms within the safe environment of online banking • Get their profile information transferred from online banking directly into TurboTax • Deposit their refund directly into an online banking account to get quick access to it • Get their refund in as few as eight days using the efile feature with direct deposit

Easy TurboTax simplifies taxes using easy-to-answer, plain-English questions about your users, their income, and their life. TurboTax asks simple questions to learn what’s changed and then automatically fills in the right tax forms. TurboTax can also retrieve W-2 information directly from over 100,000 companies and investment information from financial institutions and then automatically put it into the right places on the return.

Trusted TurboTax does the math for your users and then fully stands behind its accuracy. Before filing, TurboTax double-checks each tax return for accuracy and completeness and then helps the user fix any errors or omissions.

Secure Each TurboTax Online session is secure. TurboTax Online stores your users' information on a firewall-protected server and can only be accessed using a unique user name and password. It shields personal information while they complete their tax returns. This means that your users' information is protected from any unauthorized access while it’s electronically sent to the IRS and state agencies. TurboTax for Online Banking User Guide

3

2 | Getting Started By default all users at a participating financial institution are assigned a status of Eligible, meaning they have never used TTOB. A user changes to Active status once they SSO into TTOB and save data (but don't file their return). A user changes to Complete status when they SSO into TTOB and submit their tax return for the current year. However, if a financial institution opts out of offering TTOB, all of their end users will default to a status of Ineligible and cannot access the service.

Discovering TTOB A variety of TurboTax Online promotional spots will be available throughout the online banking system (at login, Account Summary, etc.) to help your users discover TTOB. In many cases, the end user will navigate to the Products and Services tab and find the TurboTax Online logo along with a brief product description and Launch button. In some cases, TTOB will be available as a main or sub-navigation option.

Landing Page The TTOB landing page content will vary depending on whether a user is Eligible (not yet a TTOB user), Active (has accessed TTO but hasn't filed their return for the current year) or Complete (has accessed TTOB and filed a return for the current tax year). Each of these will be described in greater detail in the following pages.

4

•

New User - A new user will see a landing page with several tabs that provide a wide variety of product information, a Get Started button, as well as a link for returning TTO customers (i.e., individuals who have used TurboTax Online in the past).

•

Returning User - A returning user that hasn't finished filing their return for the current year will see a landing page with a Continue My Return button and a graph with a percentage that indicate how far along they are in the process of filing their return. The system saved everything they had done up to that point, so they continue from where they left off.

•

Completed User - After finishing their taxes, the user will see the graph with a checkmark on the TTOB landing page indicating that their tax return was successfully completed. They can use the Go To TurboTax button to check the status of their return or print or download copies for their records. If eFile was used, they can check in a few days to see if their submission was accepted or rejected by the IRS. TurboTax for Online Banking User Guide

New Users The TurboTax Online landing page for new users provides a number of tabs that describe what the product is, how it works and the benefits of using it. Clicking the Get started button displays the Product Selection page where the user can determine which version of TurboTax is best for them: Free, Deluxe, Premier, or Home & Business. There is also a link that can be selected if the user is a returning TurboTax customer (they have used TurboTax Online in the past) that answers any questions they might have, like, will my tax data be there?

The landing page defaults to the Step by Step Guidance tab but several other tabs are available, as described below. •

Biggest Refund - The product covers over 350 deductions and some versions search a user's return to locate any deductions that might have been missed. Some versions offer ItsDeductible that sets the real value for any donated item and simplifies logging any medical expenses.

•

Safe & Secure - TurboTax Online uses a combination of encryption technology with firewall protected servers to protect your user's financial data.

•

Guaranteed Accurate - TurboTax Online does all of the math and guarantees its accuracy. In the unlikely event of an audit, TurboTax pays the penalty and any interest incurred.

•

Easy & Convenient - Users personal and financial data is imported from their financial institution and can be reviewed and edited as needed so users can complete their return quickly and accurately.

TurboTax for Online Banking User Guide

Page

5

Product Selection Clicking the Get Started button on the landing page displays a product selection feature where users can determine which version of TurboTax is best for them: Free, Deluxe, Premier, or Home & Business. One of the TurboTax products may be flagged as 'Recommended.' Each product has a brief description and either a Start Now (Free edition) or Start for Free (all others) button that can be selected to get the process going. However a user can view additional product details by clicking the Learn more link for any of the products. Clicking the Help me choose link opens a pop-up window that has over a dozen statements with checkboxes that potentially describe the user (e.g., I own a home, I am self-employed, I freelance, I sold stocks, etc.). Please refer to the screen sample on the following page. Depending on which checkboxes the user selects, the system suggests the product that best matches their needs and provides a Start button and Learn more link there in the pop-up window. Note: Users can also download the desktop version of TurboTax to their computer by clicking the link that is provided near the bottom of the page.

6

TurboTax for Online Banking User Guide

Help me choose pop-up In the example below, the user has indicated that they have a home mortgage, childcare or medical expenses and have donated items to charity and clicked the Submit button. Clicking the Submit button displays the TurboTax product that best matches your tax criteria on the right side of the pop-up. Within the product informational spot the user can read a summary statement of the product details, select links that provide information on free Federal efiling and State filing that requires an additional charge. A user can either click the Start for Free button to select the recommended product or click the Back to Turbotax products page link to do additional product research and select a different product.

The TurboTax options are described below and free Federal efiling comes with every option. •

Free: For a simple tax return, TurboTax Free Edition is the easiest way to complete the taxes and get the maximum tax refund. Please be aware that the Free edition only applies to the 1040EZ, 1040A and 1040. Users who submit additional forms (e.g., Schedule C or D) should consider one of the other versions that are available.

•

Deluxe: For home owners who have made donations, pay child care or have medical expenses, TurboTax Deluxe will comb through over 350 possible deductions and target every one that applies.

•

Premier: For someone who owns stocks, bonds, mutual funds or has rental properties, TurboTax Premier best utilizes the various forms that are required for a wide range of investments.

•

Home & Business: For someone who is a sole proprietor, consultant, contractor or single-owner LLC, TurboTax Home & Business will navigate the complexities involved with small business ownership and target the biggest tax savings.

TurboTax for Online Banking User Guide

Page

7

New or returning user Selecting a product on the product selector page opens the new or returning user pop-up seen below. The New Turbotax customer radio button is selected by default but can be changed to Returning customer if needed. Please refer to the Returning Users section in the next chapter. A user can click the associated links to view the Terms and Conditions and Consent to Populate information, if needed. They have to select the Terms and Conditions checkbox to activate the Continue button and access TurboTax Online. However, use of the Consent to Populate checkbox is optional and is offered as a convenience to quickly import their personal and financial data into TurboTax Online.

Returning TTO Customer When the user identification pop-up opens, the user selects the Returning customer radio button. The user will enter the TTO user ID and password (that they created the previous tax year) in the User ID and Password fields. The returning user also has to select the Terms and Conditions checkbox to activate the Continue button and access TurboTax Online. However, use of the Consent to Populate checkbox is optional and is offered as a convenience to quickly import their personal and financial data into TurboTax Online.

Note: In future years returning TTO users won't have to enter their previous User ID and Password, they'll just accept the T&Cs and Consent to access TTOB. 8

TurboTax for Online Banking User Guide

TurboTax Online In all of the TTO editions users will see the TTO home page tab with two indicators at the top that display their estimated Federal and State refunds. Users will see their personal tax information displayed along with helpful links that explain the tax filing process and address any questions or concerns they might have. A Tools button is also available that accesses an array of functions that help with the tax preparation details: Print Return, View Past Returns, Fee Summary, etc. Additional support is provided through a chat feature Ask Tina a Question; otherwise a user can type a question and send it to the entire TurboTax user community by clicking the Ask The Community button. If needed, they have the option to speak to a live tax expert. There's also a series of tabs near the top of the page that track the tax filing process from beginning to end. Starting on the Home tab, when a user clicks the Continue button the next tab will open, and so on until they have finished. Home Æ Personal Info Æ Federal Taxes Æ Federal Review Æ State Taxes Æ Print & eFile. In the last step, when the taxes are ready for submission, the user will have the choice to Efile or Print their return. Note: At any point, a user can click the Sign Out link. TTOB prompts them to save the data that's been imported or entered. They can continue right where they left off later on.

TurboTax for Online Banking User Guide

Page

9

Federal Taxes tab Once the user reviews their information on the Personal Info tab and clicking the Continue button opens the Federal Taxes tab. The Federal Taxes tab displays financial information from the following forms, if your financial information supports the form. •

1099-INT (Interest income)

•

1099-DIV (Dividend income)

TTO searches for the above forms within the financial institution's database and then imports all data from the forms that apply to the user. The user can review the financial data that was imported from their financial institution. As it states on the screen, the user can uncheck any items that no longer apply for that tax year or to remove any items that are duplicates. The system supplies N/A if the data is not available. When the user has finished reviewing the data, they can click the Continue button to open the Federal Review tab, or click Back to return to the previous tab.

10

TurboTax for Online Banking User Guide

Print & Efile tab Clicking Continue on the State Taxes tab opens the Print & Efile tab. Here the user can decide what to do with their Federal refund. Clicking the Continue button should finish the tax preparation process; the user will be able to review the forms and edit if needed, then either eFile or print and mail their return. The only exception to this is if the user chooses to split their refund (see Split Refund on the next page).

The user is presented with several options for handling their refund: •

Direct Deposit into a bank account - The user can select the radio button associated with the account they would like the refund directly deposited to at the host financial institution. This is the recommended option.

•

Mail a Check - The refund check can be mailed to the primary mailing address on file.

•

Deposit with another financial institution - The user has the option of depositing the refund at another financial institution of their choice.

•

Split the refund between more than one account - Selecting this option opens another window where the user can specify what amount of the refund will go to which accounts. (See Split Refund on the next page).

TurboTax for Online Banking User Guide

Page 11

Split Refund When the user selects the checkbox for I would like to split my refund in to more than one account and clicks the Continue button, the following window is opened where they can specify how the refund should be split and where the amounts should be deposited. The user can click the Learn More link to learn about how to deposit the refund to an Individual Retirement Account (IRA). The user will be directed to contact a customer support representative at your financial institution to set up their IRA.

The user's primary and other accounts from the host financial institution display their current account information by default. The only thing they need to do is enter is the dollar amount that should be deposited in each account. If an amount is to be deposited with a different financial institution, the user will have to select the type of account then enter the name of the bank, the routing number, account number and dollar amount to be deposited. A look up link is provided for the Routing Number. When finished, the user can click the Continue button. Clicking the Continue button will finish the tax preparation process; the user will be able to review the forms and edit the data if needed, then either eFile or print and mail their return.

12

TurboTax for Online Banking User Guide

3 | Continuing the Tax Return There may be occasions when a user has to suspend the entry of their tax data so they can gather additional information and complete their return later. When they click the Sign Out link the system prompts them to save all of the date that's been imported or entered up to that point. TurboTax Online Banking then enables a user to start right where they left off; all they need to do is navigate to TTOB landing page and click the Continue my return button.

TurboTax Online will open to the home page tab and the user can complete any outstanding tasks within TTO before filing their return. Please refer to the TurboTax Online section in the previous chapter for additional details.

TurboTax for Online Banking User Guide

Page 13

4 | Completing the Tax Return When the user has entered or reviewed all of their tax data, clicking the Continue button in the Print & Efile tab will finish the tax preparation process. At that point the user will be able to review the forms and edit the data if needed, then choose to either eFile or print and mail their return. When a user navigates to the TTOB landing page after submitting their Federal return, the landing page will display a green checkmark under the TurboTax logo, along with a graphic indicator that shows the process is complete. The user can click the Go to Turbotax button to access the TTO application and check the status of their return or print or download copies for their records. Note: If the return was submitted via eFile, the user was asked to check back in a few days to view the status of their return: Accepted or Rejected. In the unlikely event that their return was rejected, TTO will walk them through the process of fixing and resubmitting the return, otherwise TTO will advise them as to what the next step should be.

14

TurboTax for Online Banking User Guide

5 | TurboTax FAQs The Timing of the Birth of a Child Q. The rules say a qualifying child must live with you for at more than half the year. My daughter was born in October. Does that mean I have to wait until next year to claim her? A. No. Even a child born on December 31 qualifies as a dependent and earns the full $3,500 exemption. The same rule applies if a child dies during the year. A child who is born or dies during the year is treated as having lived with you all year long.

What about Living Together? Q. My girlfriend and I live together. She doesn’t have a job, so I pay the rent and for all the groceries. Can I claim her as my dependent?

A. Perhaps, if she meets the requirements for a qualifying relative. That means you must have lived together all year long, her gross income must be less than $3,500 and you must have provided more than half of her support. One other test: your living arrangements must not violate local law. Six states (Mississippi, Virginia, West Virginia, Florida, North Dakota and Michigan), for example, have rarelyenforced laws prohibiting cohabitation, and the IRS notes that some states prohibit couples from living together if one party is married to someone else. In such a case, the IRS says, a dependency exemption would be disallowed even if the other requirements are met.

What about Living Together – II? Q. My girlfriend and her two-year-old son live with me and I basically pay all the expenses. Can I claim both of them as my dependents?

A. Yes, if they meet all the IRS requirements for dependents. Did they live with you all year long? Did you provide more than half of their support? Did neither of them have gross income of $3,500 or more? If you can answer “yes” to all three questions, then you may claim both your girlfriend and her son as your dependents. (This assumes your living arrangements don’t violate local law. See above.) Until recently, in this situation, the boyfriend could not claim the child as a qualifying relative because the child was considered a qualifying child of the mother. However, the IRS now says if the parent’s income is so low that he or she doesn’t have to file a tax return, then the boyfriend who lives with the mother and child all year long can claim the child as a dependent.

What about Boomerang Children? Q. After our 28-year-old daughter’s divorce, she and her two young children moved back in with me and my wife. Can we claim all three of them as dependents on our tax return?

A. The answer turns on how much money your daughter made in 2007. If she made less than $3,500 and you provided more than half of her support for the year, then she can be claimed as your dependent as a qualifying relative. The same rules apply to your grandchildren. If your daughter made more than $3,500, she doesn’t qualify as your dependent, but the grandkids might, because they can be qualifying children for both you and your daughter. If your daughter agrees to let you claim the children as your TurboTax for Online Banking User Guide Page 15

dependents—and doing so will save the family money if you’re in a higher tax bracket—then you may claim them. In that case, of course, she could not claim them.

What about Boomerang Children – II? Q. Our 25-year-old son is back home after completing his college degree. He has a pretty good job, so he makes too much for us to claim him as a dependent. That doesn’t matter to us anyway, since we’re stuck in the AMT where we don’t get any benefit for dependents. We’ve heard that there’s a way he can claim his 16-year-old sister as a dependent, since we all live together in the same house. Is that really possible? A. Yes, but 2008 is the last year that this is allowed. Siblings are on the list of relatives that can be qualifying children. As long as your children lived together for more than half the year and your daughter did not supply more than half of her own support, she can be claimed as your son’s dependent. Since you get no benefit for claiming your daughter as a dependent, allowing your son to do so would cut the family’s overall tax bill.

What about Children of Divorced Parents? Q. My divorce was final last year, and the three kids live with me. Now my ex says that, since he’s paying child support, he’s going to claim them as dependents on his return. He says that means I can’t claim them on mine. Is that true? A. Not unless your divorce decree gives him that right. Since the general rule for qualifying children demands that the child live with you more than half the year, children of divorced parents are usually dependents of the custodial parent. There are exceptions. The custodial parent can release the exemption to his or her ex-spouse by signing a written declaration (Form 8332) that the noncustodial spouse must attach to the tax return each year he or she claims the children as dependents. Or, if your divorce decree gives your ex-husband the right to claim the children, he can do so if he attaches key pages of that document to his tax return. Otherwise, you get to claim the children as your dependents. If your husband claims them, too, the IRS will step in and deny his claim.

What about an Adult Child in Need? Q. Our 30-year-old son has fallen on hard times. Because he lost his job, my husband and I are basically supporting him—paying rent on his apartment and sending him money for food. Can we claim him as a dependent? A. Although he’s too old to be your “qualifying child,” he may qualify as a “qualifying relative” if he earned less than $3,500 in 2008. If that’s the case and you provided more than half of his support during the year, you may claim him as a dependent.

What about Elderly Parents? Q. My 83-year-old mother moved in with me when she could no longer live alone. Her only income is her Social Security, so she doesn’t have to file a tax return. Can I claim her as my dependent? A. Yes, assuming you provide more than half of her support, she can pass the test as a qualifying relative. Tax-free Social Security benefits don’t count as gross income for the $3,500 test. When figuring 16

TurboTax for Online Banking User Guide

that portion of her support you provide, include a value for the housing you provide. If someone else helps support your mother—one of your brothers or sisters, for example—and your combined support passes the 50% threshold, you may claim your mother as a dependent if you file a Form 2120, Multiple Support Agreement.

How do you handle a Child with a Scholarship? Q. My daughter won a full-ride scholarship to an expensive college. I’m thrilled, but I think the value of the tuition is more than what it costs me to feed and clothe the young scholar. If I don’t provide more than half of support, do I lose her as a dependent? A. Don’t worry. First, scholarships are specifically excluded when figuring support. And, remember, the test for a qualifying child is no longer that you provide more than half the support, but that she does not provide more than half of her own support. You can still claim her, assuming she’s under age 24.

What about Children of Separated Parents? Q. My wife and I separated at the end of September and our 15-year-old son lived with me in October and then with his mother the rest of the year. We’ll be filing married-filing-separate returns this year. Who gets to claim our son as a dependent? A. It’s up to you and your wife. You might decide that the parent who gets the biggest tax benefit (the one in the higher tax bracket) should claim the exemption. If you can’t agree, however, the exemption goes to your wife because your son lived with her for more of the year than he lived with you.

What about Unmarried Parents? Q. My boyfriend and I live together with our 3-year-old son. Since we’re not married, we can’t file a joint return. Which one of us gets to claim our son as a dependent? A. It’s up to you. Since he qualifies as a qualifying child for each of you, either parent may claim the child as a dependent. If you can’t decide, the exemption goes to whichever of you reports the highest adjusted gross income on your separate tax return.

What if My Child Receives an Inheritance? Q. Our 17-year-old received a $100,000 inheritance from his uncle last year. Does that mean we can’t claim him as a dependent on our 2008 return? A. Not unless he splurged on an expensive car, lavish trip or otherwise spent a lot of the money on his on behalf. When it comes to the qualifying child tests, it doesn’t matter how much money a child receives during the year (from work, a gift or inheritance). What matters is if he provides more than half of his support. Any money he saved doesn’t count toward his support, so you can probably still claim him as your dependent. Note: For additional TurboTax FAQs, please visit: http://turbotax.intuit.com/support/ and select Tax Questions, Doing Your Taxes or Printing and E-filing.

TurboTax for Online Banking User Guide

Page 17