Life, death and taxes the common denominator in everyone’s existence.
It is costly to file your tax return if you use a tax preparation or accounting firm. Accounting and tax preparation firms can charge up to $200 or more to prepare and e-file or electronically file a simple tax return. There are also added costs if you utilize some of the bank products most tax preparers and accounting firms now offer.
The preparers offer the tax payer options such as Refund Anticipation Loans which give you a loan on your expected refund or a cash card which allows you to receive your refund on a debit card instead of waiting for a paper check if you do not have a bank account. These options come with fees that some may consider exorbitant.
These options are great for some people but for many there is no need to pay a huge fee for options you don’t need. Companies such as TurboTax, H and R Block and many others allow some people to use their tax preparation software to e- file for free. You can e-file your return by accessing these companies’ tax preparation software through the IRS website www.irs.gov.
To e-file for free using these companies tax preparation software your income has to be below a certain level and also you MUST access these companies through the www.irs.gov website. In 2007 the income limit was generally between $25,000 and $54,000 depending on the company.
Even if your income is too high to e-file for free you can still utilize the tax preparation software to file your return a lot cheaper than the average tax preparer or accounting firm will charge.
The e- filing programs are easy to use and the software will walk you through the filing process. You do not need extensive knowledge of the tax code for the simple returns that the average taxpayer files.
Using direct deposit you can have your refund deposited in your checking or savings account in 7 to 10 days. Even if you choose to wait for a check, your refund usually arrives before 4 weeks whereas a usual refund could take 4 to 6 weeks.
You will only be able to file your federal return without cost through the www.irs.gov website. If you want your state tax form prepared also there is a fee charged. After you complete your federal return the program will ask you if you want to file your state return. You want to answer no, unless you want to pay the fee. When you do answer the program will proceed with filing your federal return. States such as Ohio now allow you to go to their state website where you can e-file your state tax return at no charge. You can check with your state to see if they offer e-file for their state returns.
For some people tax season could be cost free. You pay enough money in taxes. There is no need to pay a lot of money to file your tax return.