Have you found yourself gathering up receipts and adding up your donations? Has your mailbox been flooded with W2s and 1099s? If so, it must be tax time! This time of year is stressful for many and the inevitable question often arises: do I have to pay a professional to file my taxes?
While it is certainly advisable to hire a professional if you own your own business, have multiple incomes from varied sources, or are in an incredibly high tax-bracket, the average Joe can get by safely, and easily, filing his or her own taxes. Not only is filing your own taxes cheaper than hiring a professional but, in some cases, it may be free.
Some filing options to consider include:
Free Filing Options
If you have one job and make under $57,000 per year, you can file your federal returns online at sites like IRS.gov, for free. If you have a smartphone or an Apple device, you can even use an app to file your federal tax return for free. Typically, if you plan on filing a 1040EZ, you won’t have to pay to file.
Online Software
Sites like TurboTax and H&R Block allow users to log in and file their federal and state returns online. If you use the software next year, you can easily import this year’s return; this makes filing incredibly easy. These online tools will walk you through your deductions, ask you questions along the way and file your returns electronically. The biggest benefit, in many users’ opinion, is the protection from audit that these companies offer.
When you have finished your return online with one of these programs, they will automatically put your return through an audit checker before you submit. If there is any portion of your return that may raise red flags, you will be alerted and able to change the information if necessary.
Paper Filing
If you are savvy with numbers and are familiar with tax law, there’s no reason not to sit down with your receipts, W2s, and other tax documents and fill out your own paperwork. It’s free to do and relatively easy if you have no complex tax situations. Some people do avoid paper filing, however, because it can delay receiving your refund check.
If none of these filing options work for you, you’ll need to hire a tax preparer. Watch, though, because if you don’t know what you’re looking for, you can easily spend more than you need to. Look into several tax preparers and find out how much they charge to both prepare and file your taxes. Ask if they file electronically and avoid refund anticipation loans. You’ll pay heavily for the privilege of getting your refund up front and in reality you should receive it through direct deposit in a matter of a week or two.
Tax season is stressful for many people. Having to pay to file your federal return can make the experience all the more bitter. Look into these filing options and decide if any will work for you. Somehow, filing taxes for free makes the whole process less painful.
Mary Blanchard is an online marketing consultant for a retailer in the UK. She is constantly ahead of the market and provides what her customers want in online shopping. Mary uses couponcroc as a gateway to discounts for her clients.
