As it does each year, tax season brings stress and worry to many families, even when a refund is expected. Whether filing your state and federal taxes means a substantial refund or a significant amount owed to the IRS or state government, tax preparation is a challenge for nearly everyone.
If you prefer the old fashioned pen and paper means of filing your taxes, forms are available at your local library or online at http://www.irs.gov. The Internal Revenue Service (IRS) provides thorough instructions for filing your taxes on paper, and you will require nothing save the forms, a pen and perhaps a calculator. In 2007, the tax deadline is April 17th, as the 15th falls on a Sunday and the 16th is a holiday in Washington D.C. This is also the deadline for Roth IRA contributions and filing a tax extension if you require one. More and more people are avoiding the rush to the post office in April by e-filing their taxes.
E-filing is growing in popularity each year. Taxpayers with an adjusted gross income under $52,000 may even be eligible to file their taxes for free online. The IRS has, in agreement with a number of private services, set up a listing of free filing resources, available online at http://www.irs.gov/efile/article/0,,id=118986,00.html. Additional free filing options may be available for active duty military, and some services even offer free state tax filing. E-filing services may also offer refund loans; however, these are expensive and provide little benefit, giving you as little as a week's advantage over basic e-filing.
If you choose to do your own taxes, you can purchase software that includes the cost of e-filing or use an online service. In the case of online services, the preparation software is free, but you will pay a filing fee. Typically, the programs purchased offer free filing, but the cost for out of the box software and online versions is typically the same within a single brand. These services and software programs offer easy to use interfaces that guide you through complex tax questions. All aspects of your tax filing are covered, from income to investments, deductions to dividends. Some services even offer personal review or audit assistance for an additional fee.
Tax preparation services abound during tax season, with drop off booths set up in many malls, major retailers, and other convenient locations. These services offer tax preparation and e-filing, as well as tax refund loans. The tax preparers have typically received some training; however, they are not accountants.Many people find this option desirable because of the availability of refund anticipation loans. While e-filing alone will often provide your refund via direct deposit in as little as nine to ten days, the quick return of these services can be tempting. While the flat fee for the refund loan may appear reasonable, this loan comes at a substantial interest rate. Avoid such refund loans unless your financial situation is dire.
Finally, if your taxes are complex, consider seeing a Certified Professional Accountant for tax help. While anyone can, with the assistance of simple software, file a basic tax return accurately and easily, an accountant may be helpful in reducing your tax burden if your financial situation is more complex. The assistance of an accountant may be especially helpful if you are filing self employment taxes, own multiple properties, or have extensive deductions.
Regardless of what means you choose to prepare your taxes, accuracy and care are important. Report information to the IRS, tax preparer or software as honestly and accurately as possible, claim deductions and credits to which you are entitled, and file your taxes or a needed extension by the date due. Tax time need not be a worry or stress with quality modern tools and assistance.