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Online Tax Filing Services
Dave Said:Filing taxes online yourself or through a tax preparer? Which is better?
We Answered:I use TurboTax on line. Here is why. Tax preparers are too concerned about being audited. They tend to lean toward a very safe approach. That helps protect them but it costs you.
Use an on line service or software. To save the maximum amount you will have to fill it out twice. The first time, be as conservative as possible. Everything you put down should be clearly documented and proven. When you are finished, note the amount of tax you pay.
Now, start over and fill it out taking the maximum you think you could possibly justify of every conceivable deduction without being fraudulent. (do not claim to have a blind child, for instance if you don't). Now note how much less you pay.
Then file the second one. You now know what the difference is and if you are audited how much the maximum amount you owe could possibly be. Just make sure you have that amount on hand to pay it if you have to.
Chances are very good that the IRS will accept your return without a peep. But at least you know that if they squawk how much more you will have to pay. Just make sure you have it to give to them.
Works pretty well for me.
Jesse Said:Which online tax service is offering best "Cost/benefits" ?
We Answered:I just used TaxACT.com for first time (online version). I did my state (PA) and federal, both e-filed for $15.95. It was very easy to use and the e-filing went through within 24 hours. I am recommending this site to my friends and family. My taxes are pretty straightforward (motgage, kids, some charitable stuff). Entering investment gain or loss should be no problem. You can even get it done for cheaper on this site if you don't do your state taxes online ($9.95) and federal can be done for free if you don;t want the online version of "J.K. Lasser's Your Income Tax Guide" and some of the other features on the site. After using this site I do not see why anyone would pay over twice as much for some of the other online tax sites.
Bradley Said:I file my own taxes, is it cheaper for me to use online tax services or buy the software?
We Answered:there are a TON of companies that offer free web-based filing services that do your taxes for you. you fill in some numbers, they complete your taxes for you. check out this page on the IRS website to find a website to use: http://www.irs.gov/app/freeFile/jsp/inde…
and if you make less than $54000 you efile for free!