Tax Filing Guide
Tax Season is just around the corner...do you know how you're going to file your tax return? This comprehensive guide explains the different ways to file your taxes including the best tax preparation software as well as other options - free and paid. Follow the links to the various types of income tax filing software, or read on to learn about other ways to file your taxes.
Tax Preparation Software
Complete your tax return by purchasing tax preparing software such as TaxCut, Turbo Tax, and Tax Act. They are easy to use, and you can prepare your tax return at your convenience. Simply enter your income and expense information, and the software will automatically do the math and put them in the appropriate form. Tax preparation software generally runs around $20-$80. You can choose to print off your return and mail it, or e-file it (some software will charge you extra for e-filing). Always use the latest version of software, since tax laws constantly change. Also, make sure that the software is compatible with your computer. To see ratings for online tax software see Tax Software Review by Top Ten Reviews.
- TurboTax Basic: Step-by-step guidance for simple returns. Includes Federal Program only.
Extras: E-filing $17.95 per return, State Return $34.95
SoftwareMedia Price: $20.00 Ships Free.
- TurboTax Deluxe: Includes everything in Basic, plus extra help with itemized deductions such as mortgage interest, donations, education, and medical expenses. Includes Federal & State.
Extras: E-filing $17.95 for return
SoftwareMedia Price: $47.00 Ships Free.
- TurboTax Premier: Includes everything in Deluxe, plus extra help with your stocks, bonds, mutual funds, and rental properties. Includes Federal & State.
Extras: E-filing $17.95 for return
SoftwareMedia Price: $74.00 Ships Free.
- TurboTax Home & Business: Includes everything in Premier plus Schedule C guidance for sole proprietors, the self-employed, consultants, 1099 contractors and single-owner LLCs. Includes Federal & State.
Extras: E-filing $17.95 for return
SoftwareMedia Price: $64.00 Ships Free.
- TaxCut Premium: Includes Federal Program and Deduction Pro.
Extras: State Program is additional. E-filing fees are determined when you are ready to e-file.
SoftwareMedia Price: $29.00 Ships Free.
- TaxCut Premium + State: Includes Federal & State Program along with Deduction Pro.
Extras: E-filing fees are determined when you are ready to e-file.
SoftwareMedia Price: $40.00 Ships Free.
- TaxCut Premium + State + E-file: Includes federal and state program, e-filing for both federal and state, Deduction Pro, and one free session to Ask a Tax Advisor.
SoftwareMedia Price: $45.00 Ships Free.
- TaxCut Home & Business: Guidance for corporate, partnership, and payroll business returns. Includes personal and business federal programs, personal state program, unlimited business state programs, personal federal and state e-file, DeductionPro, and one free session to Ask a Tax Advisor.
SoftwareMedia Price: $89.00 Ships Free.
- TaxAct Standard: Includes free Federal Program & free E-file.
Extras: State Return (includes e-file) $13.95
Download Price: Free ($5.95 for shipping on CD-ROM)
- TaxAct Deluxe: Includes Federal Return & E-file. Packed with extra tax help & advice, FAFSA report and more.
Extras: State Return (includes e-file) $13.95
Download Price: $12.95 ($5.95 for shipping on CD-ROM)
- TaxAct Ultimate: Includes Federal & State Return with free federal income tax e-filing.
Extras: E-file state return for $7.95
Download Price: $19.95 ($5.95 for shipping on CD-ROM)
E-filing
Receive your refund faster (14 days is the approximate turnaround according to the IRS) and with fewer errors compared to the mail in method.
Online Tax Preparation
Just like tax software, except no installation. Complete your tax filing anywhere using a standard web browser. With online tax preparation, you’re working directly over the internet, while with tax software you’re directly working on your computer and saving to the hard drive. This can be less expensive upfront, but watch for hidden fees, especially in e-filing.
Free File Program through IRS
Eligible taxpayers with an Adjusted Gross Income of $54,000 or less can file their taxes for free with the Free File program beginning in mid-January 2008. There are about 20 tax software providers offering free tax filing subjected to limitations, including TaxACT. Before selecting a software company, confirm that you meet their eligibility. Read more aboutFree File.
Professional Tax Preparers
Tax preparers work with clients to help them complete their returns. If during the past tax year, you’ve gotten married or divorced, bought or sold a house, inherited money, experienced a death of a spouse, or other major life event, then you’ll probably be better off going to a qualified tax preparer. Also, if you don’t feel comfortable doing your own taxes, you should look into seeing a qualified tax professional.
H&R Block
Walk in with your taxes, and receive a loan check within 1 to 2 days later. H&R Block’s Instant Money Refund Anticipation Loan, allows you to take out a loan in the amount of your anticipated tax refund and immediately receive your check, minus bank fees and H&R Block’s fees. Watch out though, this is not your refund; it is a bank loan that has to be repaid, and the interest rate can be pretty steep.
Old fashioned –paper and pen
By preparing your taxes manually, you’re more likely to create errors. Missing a tax deduction or credit could cost you hundreds of dollars in a tax refund, and claiming the wrong one could result in a fraudulent return. Be careful and double check your calculations if you use this route.
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