“The only certainties in life are death and taxes.” As
depressing as this saying may sound we at least have control over the latter of
the two. We often get a feeling of dread when thinking about the taxes we have to
pay, not because we have to pay them, but because navigating the world of taxes
is like trying to find a way through a desert blindfolded. However, thanks to
the wonderful power of the internet filing taxes can feel more like paying a required
gratuity at your favorite restaurant.
The difficulty with filing taxes is that most people don’t
have the knowledge needed to find all the rules, deductions, penalties, and
refunds. The options are either burn countless hours scouring for information or pay someone a tonne of your hard earned money to file the taxes for you,
which a little like paying one waiter to tip a second waiter. Thanks to the
processing power of programs on the internet that the first waiter is now an
automatic service that connects you to all the information needed to file
taxes. The result is a more accurate tax return, less chance of an audit, and
a higher chance of getting tax returns. The electronic filing associated with also
increases the speed of processing taxes, so if you are entitled to a refund you
will get if much faster than traditional filing by paper.
Tax payers have two primary options to file taxes online.
The first is filing directly through the IRS (Internal Revenue Service).
Taxpayers that meet income requirements are able to take advantage of the free
IRS filing tool at no charge.
Users can also buy purchase software from financial
companies such as H&R Block and Intuit. These software suites cost between
thirty and sixty dollars to purchase each year. Ok, this is still the whole
waiter tipping the waiter thing, but the cost of purchasing in-home software is
marginal compared to paying an accountant to file your taxes. The software is a
good choice over the free IRS services because it will often catch more
deductions, and potential audit items. The software is also much faster than an
accountant. The series of simple to follow questions guide users along a clear
path, while educating them about what the different tax forms mean for you and
your financial profile.
Whether choosing the IRS or private software users can be at
ease that their information is encrypted and protected against possible
identity thieves, or other financial fraud.
Paying taxes online has become more and more popular, and
some financial institutions even promote that billions of dollars are recovered
by taxpayers every year in tax refunds. This is accomplished with the
constantly updating software. Instead of having to sort through confusing tax
code updates year after year the software automatically receives, sorts, and
implements new tax codes every single year. The updates apply to both state and
federal tax codes, meaning users can also maximize their state returns. State
filing is possible through online tax software, creating a complete tax season
solution.
For users that have more complex taxes, like small business
owners or people that work from home, hiring an accountant may be beneficial as
there are more pitfalls waiting along the path to tax filing. However, tax
professionals and accountants are still able to access online filing tool that
will submit a completed return electronically. This means a taxpayer will still
gain the benefits of reduced filing and return time even though they had to use
an accountant.
