Tax Preparation Online Tips
Tax Preparation Online – 6 Tips to Help You Make It More Pleasant
In 2015, over 44.2 million American taxpayers prepared and also e-filed their own tax returns. According to the IRS, this was approximately a 4.5 % increase over the preceding year.
Using tax preparation online was very fast and easy and much more affordable that going to one of the franchise tax outlets or an accounting firm.
Today, taxpayers have all of the information they need to file tax returns online, readily available.
The online tax filing programs use the interview method of obtaining the required information. Simple questions are asked that basically cover any new changes in tax law. It also makes sure that any credits or other deductions that you may qualify for are maximized.
After your return is completed and e-filed, the program will let you know when the IRS and your state accept the return. A program like ours at 1040.com will also allow you to check the status of your federal and state refunds. The entire tax preparation online process is fast and easy, even with a mobile app. However, the following tips will help you to get better organized to make the online tax filing a breeze:
- Get a copy of your previous year’s return and all of your tax documents for the current year
- Start early and make sure you have all required documents. If you wait and then get in a rush, there’s more chance of making errors.
- If you’re looking at different tax preparation online packages, make sure that you make an accurate comparison of forms they will prepare. Most programs will make you upgrade to a more costly pricing. Or simply use our 1040.com site and let the system handle it all for you. Everything is spelled out in plain English for you.
- The so called “Affordable Care Act” rears its ugly head again on 2016 tax returns. Penalties have increased, so be aware of this and be sure to answer that question carefully. Any questions that relate to the amounts your employer and you paid for employer sponsored health care will be shown on your W-2 as a code DD in block 12. That amount shown there is for your information only and will have no bearing on your income taxes. It just gives you a comparison of the cost for health coverage. If the tax preparation online program asks for that amount, just enter it when requested.
- If you want to get your refunds in the shortest time possible, then choose e-filing with direct deposit to your checking or savings account. When you e-file a return, you know exactly when the IRS and your state have accepted your return and begins the processing. With a paper filed return, you don’t have that benefit.
- When you are doing tax preparation online, it’s just like having your accountant with you.
The interview process will take you through any tax changes that relate to deductions or tax credits. These changes affect tax returns every year and you can be sure that 1040.com is aware of every single one.
Based on your answers to the simple questions, it will know every credit and deduction that you qualify for.
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Some of the deductions that were allowed in prior years have expired and will not be available in filing your 2016 return. The tax program will know that and will not allow you to enter it if you do.
If you are married and filing a joint return there are tax credits available for child and dependent care. There is an age limit on the children and both parents must be employed or attending a school.
The purpose of this article is not to list every tax credit or deduction available for 2016 returns. This will be covered when we get near year end and Congress has hopefully acted on them. This article is to give you tips on what and how to do to do tax preparation online.
We highly recommend that you give our site a try and see just how fast and easy it is. We’re quite sure that you will be pleased with the tax preparation online process. See it here.