What you need to know before doing your taxes online
ARA
It now takes more than 71,000 pages to cover and explain federal tax laws. So it’s not surprising the vast majority of taxpayers look for help preparing and filing their tax returns. Use of online tax preparation and e-filing continues to grow at record rates. In fact, more than 32 million taxpayers e-filed their tax returns from home last year, according to the Internal Revenue Service.
“Online tax prep can take a lot of the hassle out of doing your taxes,” says Gary Lundberg, product management director for CompleteTax (www.CompleteTax.com), an online income tax preparation and e-filing service. “But you want to make sure you use a program that best meets your needs.”
A recent independently conducted survey of approximately 1,000 taxpayers found that the most important factors to taxpayers in getting their taxes done are:
- Accuracy
- Safety and security
- Help and support
- Affordability
- Ease of use
- The best refund
According to Lundberg, questions you should look to answer when evaluating online tax programs are:
1. Does the program automatically check for accuracy?
Data entry errors and failing to enter key information, such as Social Security numbers, are some of the most common mistakes people make in preparing their taxes. Make certain the program automatically checks for errors or oversights. The program should provide links to the problems to help you quickly correct potentially costly mistakes.
2. Is the site secure?
You want to use an online program that encrypts your data using recognized security standards. Only use e-file programs that have been tested and approved by the IRS. These will display the IRS e-file logo on their home page.
3. What are the help options?
Ideally, the program should be straightforward, allowing you to finish your tax returns on your own. But you will want comprehensive help should you run into a question you can’t answer. So make sure the online tax program provides help resources on every page and offers support via e-mail or live online chat.
4. Does it clearly show the cost of preparing and filing your returns?
The cost for using the program should be displayed clearly on the first page so that you can make an informed choice. According to Lundberg, many first-time filers and other taxpayers with uncomplicated tax situations can take advantage of free versions offered by some online tax prep providers. For example, CompleteTax’s Free version can be used to prepare and file 1040EZ and even certain simple 1040 tax returns. Even if your taxes are more complicated, there is online software for basic federal income tax prep and e-file starting at under $20.
5. Is it easy to use?
Most online programs allow you to try them before you buy.
You don’t have to go to a store, purchase the software, install it on your computer and hope you like it. Rather, you simply go to the online program’s Web site and start using it. Before you purchase, you can make sure the online program you choose is easy to navigate and presents information clearly.
6. What features does it include to help maximize your refund?
Most taxpayers are concerned that they may be missing deductions or credits that could save them money. Look for an online tax program that offers tools to help you make the most of credits and deductions. For example, this could include tools to help calculate the value of charitable deductions, such as clothing or household items.
“Part of getting your taxes done right is getting the biggest refund you deserve,” says Lundberg. “You need to pay taxes, but you want to use an online tax prep solution that’s helping make sure you’re not paying more than necessary.”
More information on online tax preparation and e-filing is available from CompleteTax at www.CompleteTax.com.
+ Top Story
Brian White opened his barbershop in 2008, he wanted to try something different. He didn't just want to offer haircuts like other barbershops in the area. First, he wanted to re-introduce the "bow-tie" effect to a generation that has never seen that. And, secondly...
It might be coincidental that the new year and the beginning of tax season arrive so close together. Many people resolve to be wiser with their money in the new year, and it just so happens that being smart about your taxes is a good way to get started.
Smartphones are steadily becoming commonplace devices for everyone from professionals to busy moms. Users of these devices now instinctively turn to their phones for tasks that previously they would only have accomplished on a computer, over the phone or in person.
Sears Holdings Corp. plans to close between 100 and 120 Sears and Kmart stores after poor sales during the holidays, the most crucial time of year for retailers. The closings are the latest and most visible in a long series of moves to try to fix a retailer...
Last month, EURweb reported that Cathy Hughes' cable channel TV One was suing the BET Network, MTV and Music World Music for violating its exclusive rights to the Essence Music Festival. Mathew Knowles' Music World Music is listed in the lawsuit because his company brokered the deal...
Russell Simmons was among the handful of celebrities making a daily show of support of Occupy Wall Street (OWS) via a very visible presence on the ground in lower Manhattan and other cities.
For years, getting a government job meant security, good pay and a pathway into the middle class for many Americans, especially African-Americans and other minorities. But with government agencies at all levels forced to slash expenses in a bid to balance budgets that long-held promise is in danger of being broken.
A federal lawsuit filed Monday in Chicago accused Comcast Corp. of discriminating against the African-American employees of its South Side facility and its own customers by requiring workers to install defective or bug-infested equipment into residents' homes.