Filing taxes online – “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.
Difficulties Of Filing Tax And Why You Should Be Filing Taxes Online
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 and to allow you to be filing taxes online.
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 Be Filing 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 and can help with filing taxes online.
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 For Filing Taxes
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.
Filing 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
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.