You finally got your W-2 in the mail and you are ready to file your taxes. When you are looking forward to a fast tax return, submit your taxes electronically. Here is a rundown of the best tax tools on the Internet.
Why File Electronically?
There are many benefits to filing your taxes online.
- Tracking Your Records: Getting in the habit of filing your taxes online means that you have a permanent electronic record of each year's tax return. If a question should arise about a previous year's return, you won't have to dig through mountains of paperwork to find the answer--it will be right there in front of you at the touch of your fingers.
- Accuracy: Filing taxes is anything but easy, especially if you have a businesses or other assets. Online tax filing takes the guesswork out of finding the latest forms you need to fill out. When you file online the work is done for you. Some can even locate your W-2 electronically! Today, many online tax programs come with audit protection tools that estimate your chances of receiving an audit. These tools find your mistakes and help you fix them.
- Better Returns: You may have to shell out some cash to do your taxes online but the benefit is that you may get back much more in a return (or pay less tax) then if you did them yourself.
- Faster Returns: When you have money coming back, you want that cash as quickly as possible. With online tax programs using direct deposit, you can get your return in as little as 8-14 days!
How Much Does it Cost?
This part is a bit trickier. While doing your own taxes costs you a stamp or two, online programs vary in price. The good news for those of you with simple tax situations is that online tax tools are low cost and sometimes even free! The more complex the return, the higher the price. However, the cost is usually outweighed by the amount saved in found deductions!
Also, many programs will take their cost out of your return if you choose direct deposit, so you don't have to worry about an upfront fee.
Be Prepared
Before turning on your computer, it's best to have a few items at your disposal.
- Last year's return: Some programs ask for information from a previous year's return to verify your identity.
- Social security number: Can't file without it!
- Tax forms: W-2s, 1099s, bank interest statements
- Medical bills
- Mortgage interest payments
- Student loan interest payments, etc.
Have on hand everything you would when you do your taxes by hand. You will need to reference this information often. There is also one last thing:
- A partner or friend
Have a friend or partner nearby to read numbers to you, help you run through directions and work through any computer glitches. And no matter what: save your return often!
File Taxes Electronically
When you are all ready to submit your taxes it is time to find an online tax program that fits your needs. Here is a rundown of the most popular and user-friendly electronic tax programs:
- IRS E-File: The IRS actually has its own online filing program. What better way to ensure that you are submitting an accurate return than to use an IRS approved electronic filing system? Additionally, if your adjusted gross income for the year 2008 is less than $56,000 you may qualify for free federal electronic filing.
- TurboTax: Turbo Tax is one of the most popular electronic tax filing programs around, and for good reason. Their user-friendly format helps users get the best deductions and their auditing protection tools and costumer service offer extra support for new users. To get started, you answer a few simple questions and the program determines which tax forms you need. It is really that easy. Best of all, Turbo Tax will transfer data from previous years' returns and data from your federal returns into your state returns -- saving you time and typing!
An Easy Way to Prepare Taxes
This year, save yourself the hassle of filling out form after form and file your taxes electronically. Not only will you save time, money and confusion, you will have your return in your pocket much faster. And who can say no to that?
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