Once again, the pages of the calendar are rapidly turning and soon it will be April 15. Rather than face the day with fear, you can select one of the many options available to help you easily prepare your taxes.
Option 1 – Paper Forms
The first option is to complete a paper version of your tax form and mail it to the IRS. You can obtain the forms from your local library or post office, or you can download them from the IRS website. The IRS provides many forms in a "fill-in" format which allow you to type the information directly on the form. You will need the free Adobe Reader software on your computer but most computers come with Adobe Reader software already installed; however, if you need to install the software you will find a link to the Adobe site within the IRS website.
If you will be receiving a refund then you should consider one of the other options, as sending a paper return will increase the length of time it takes to receive a refund.
Option 2 – Online Filing
The second option is to utilize one of the IRS Free File programs available online. To be eligible for Free File you must have an Adjusted Gross Income (AGI) of $52,000 or less. This method allows you to file electronically and, if you are receiving a refund, have your money sent to your bank account electronically. If you owe money, you can still file your return electronically and send your check separately. You will find an extensive list of online Free File programs at the IRS website. Some of the Free File companies have additional requirements in order to qualify for free preparation so be certain to select the one that meets your needs.
Option 3 – Tax Preparation Software
The third option is to purchase tax preparation software. The top three programs are: 2nd Story Software’s TaxAct, Intuit’s TurboTax, and H&R Block’s TaxCut. The factors to consider when deciding which program to buy are: price, available support, and available options. I have used both TaxAct and TurboTax and, while both are great products, I generally prefer TaxAct. TaxAct Standard software is free to download to your computer and the option to file electronically is also free. The interview method of the program will guide you through the process and the software will automatically enter the information onto your return. The program reflects the latest tax law changes and will alert you to any errors or omissions on your return. State returns are also available at an additional cost.
Option 4 – Have Someone Else Prepare Your Taxes
If you decide that you do not want to prepare your own taxes then you can:
- Hire someone to do your taxes. Be sure and check the credentials of paid tax preparers. Are they a CPA, an Enrolled Agent (EA), or an Attorney? Only a CPA, an EA, or an Attorney are eligible to represent you in all matters before the IRS, including audits, collection actions, and appeals.
- Utilize one of the free volunteer assistance programs available through the IRS. The IRS Volunteer Income Tax Assistance (VITA) Program is for low- to moderate-income ($39,000 and below) taxpayers and the Tax Counseling for the Elderly (TCE) Program is for taxpayers over the age of 60. The VITA program is also available to all military personnel at offices within their military installation. The military VITA offices are trained and equipped to handle military tax issues and, in addition to tax preparation, they provide tax advice to military personnel.
Have a tax related question? If so, post it in the Home Finance Forum
