For many of our personal financial situations, income tax preparation is not as difficult as it may seem. Online tax preparation has greatly advanced the ease with which an individual can file their taxes. Doing your own taxes is not something that should intimidate you. You may be surprised just how simple preparing your taxes – particularly online – can be.
Online Tax Preparation: Do I Need Special Software?
While tax software will allow you to calculate your taxes on your desktop and submit them via your Internet connection, it is not necessary for preparing your return online. There is a lot of tax prep software out there, led by Turbo Tax and H&R Block. These programs are all quite effective and convenient, but if your preference is simplicity in doing your taxes right from a website, that’s easily doable, as well.
There are a lot of online places to prepare your return, so this article will not recommend any specifically. Do a web search and you will find plenty of options. The main thing is to go with a company that is well-respected and has been around for awhile. Look for user reviews online for any tax prep organization you are considering.
Online Tax Preparation: Does the IRS Frown on Online Returns?
No, quite the opposite. The IRS has been encouraging people to file electronically for years. E-filing is a lot more easy and convenient for them, as there are no paper stacks to chase around and sift through. The IRS is more than happy to have you do your tax preparation online.
As a matter of fact, the IRS offers a service at their website called “Free File." If your adjusted gross income for 2009 is $57,000 or less, you can use Free File. The Free File page also offers links and assistance in getting your taxes filed using one of the easiest methods available.
Online Tax Preparation: Is it Easier to Just Bring my Taxes to a Professional?
It might be easier in the respect that you don’t have to do anything except shell out a fairly exorbitant amount of money for tax prep that, for most Americans, is rather simple.
New laws regarding tax preparers could very well result in an increase in what tax preparers charge. This is nicely outlined in an article at Wisconsin Law Journal, from October 13, 2010. The article, written by Robert B Teuber, is called, “New IRS rules target tax return preparers” and explains that “The IRS will now require everyone that prepares ‘all or substantially all’ of a tax return to register with the IRS and receive a Preparer Tax Identification Number (PTIN).”
Basically what this means is, even if you have an uncle who does your taxes for you for a few bucks, even he will have to pay the required fee and register. Obviously, this will drive up the cost of the tax preparers who are working the business on the side.
Come on, don’t be afraid. Get online and do your own tax preparation. – Really, if you mess up, how long could they put you in jail for anyway?
…Just kidding…
Read this article to find out how to get IRS help, and this one to learn about a huge tax debt relief scam.
Curtis Candy - I'm an ex-professional wrestler and stand-up comic, who, after suffering impressive amounts of cranial trauma (most of it from wrestling; ...
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