Electronic Tax Filing
Should I file my tax return electronically online this year?
Does the thought of doing your own taxes stress you out? Is it overwhelming to think about
all the paperwork to be done? Or maybe the thought of paying someone else to do your income
tax preparation make you feel like you're giving your money away. Either way, it's stressful.
How do you decide if doing your own 1040 is something you want to tackle or if you need help? There is a lot of tax prep software available for taxpayers to use in filing their income taxes. Each year the percentage of taxpayers filing their own tax forms increases. Income tax returns filed electronically now make up nearly 70 percent of all returns. Online electronic income tax filing is definitely the way to file your taxes.
Choosing Your Electronic Tax Filing Software
Choosing your electronic tax software directly
relates to how complicated is your tax situation? How sure are you about doing your own paperwork?
Will you want help with the forms? Are you willing to shell out cash for someone else to do
the paperwork? The answers to these questions will help you decide if you want to do online
tax filing or not.
Most of the tax preparation software to file taxes electronically will meet your needs, especially if you only have a couple W2's and few deductions. Many companies offer tax software that ranges from simple to more complex. Anyone can file from the single renter to a self-employed property owner to a small business operator or rental income business.
Tax software will help you find deductions and tax credits that you might be unaware of. Major changes in life like getting married, divorced or having a baby will all affect your taxes and the tax programs will ask questions that will help you maximize your refund. If you're self-employed or an investor or a business owner, there is a tax program that will be tailored to meet your those criteria. The most well known software programs even offer online help via email and chat rooms.
Check out the variety of companies offering a wide selection of online electronic tax software to prepare and file tax returns electronically online by efile. Our top choices offer step-by-step guidance.
Preparing you return electronically online allows you the flexibility to work on your return from anywhere you have internet access. With online tax filing you also have the option of using efile to file your return with the IRS and get a confirmation that your return has been accepted.
Another great advantage to electronic tax filing is the fact that you can receive you refund in as quick as possible if you choose the direct deposit option that deposits your income tax refund directly into your bank account. A great way to get a speedy refund...
TurboTax - Free Edition for simple tax filing, the Basic version for basic returns and step-by-step guidance; the Deluxe version for those who own homes, make donations or have medical deductions; the Premier version for taxpayers who own stocks, bonds, mutual funds or rental properties; the Home + Business version if you're a sole proprietor, consultant/freelancer or single owner LLC; the Business version for those who have a partnership, corporation or multi-member LLC.
Block - Free program for simple
tax needs, step-by-step guidance: Basic program imports your W-2, 1099, last year's return,
with free tax advice; Deluxe program includes expert tax guidance for homeowners and investors;
the Premium program is for the self-employed or rental property owner, with schedule C guidance
and live tax help.
With a little work reading the options available on these programs, you'll be able to choose the software that will make doing your own online income taxes easier than you thought possible. Take control and save money at the same time!
TaxAct - The 1040 EZ is for single or married taxpayers with no kids, the 1040 Basic is for taxpayers with children, taxable interest, EIC and more, the 1040 Deluxe is for those with itemized deductions, capital gains, AMT, S-Corp and more, the 1040 Premium is for filers who are small business owners, freelancers, or have rental income.
E-Smart-Tax - Free version for those filing the 1040 EZ with no children or dependants, the Basic program for those with children and itemized deductions, the Deluxe program for those with investments and retirement income, the Premium program for filers who are business owners and/or independent contractors.
With all the competition in the tax software market, it's important to make sure your purchasing a well organized product that guides you easily through the whole tax filing process.
Making the wrong choice can leave you pulling your hair out in frustration, and that isn't all that uncommon with all the fly-by-night software brands sneaking onto the market these days. Be careful!