Wednesday, December 20, 2006

Time to File Your Tax Online

Tax is one of things many people want to avoid but they can’t. This is not because they don’t want to pay government money, but ‘cause it’s too stressful. US Post Office is crowded in the second week of April every year. The complexity of tax laws had reached the point that one of US presidential candidates ran his presidential campaign on the platform of flat tax proposal a few years back. That was Steve Forbes.

Many people hire CPAs or professional tax preparers to do their tax, while others prefer to do the job themselves. Studies and news reports have shown that the tax professionals often make mistakes. You handed your tax works to a tax firms, and chances are it’s prepared by someone who aren’t really that knowledgeable about tax at all.

It you haven’t tried file your tax return online, it’s time to get started. Besides the fact that you’ll get your tax refund in a week or two, you’ll receive a electronic confirmation that your tax return is indeed received. The one of most important benefits you want to file taxes online is that online tax filing websites actually guide you through the complex process plus tax tips and advice, and do certain degree of validation and check whether your filing confirms with the current laws.

There are some things to remember when filing your taxes online. First, you will want to read your W-2. Find out what each of those boxes mean and be sure to read the back of your W-2 as well before you begin. You will want to print out copies of your tax forms, even when you file them online, for your records. Most online filing services will provide you with a confirmation that the IRS has received your taxes. You will want to print that out as well.

The IRS website, in addition to offering a tremendous amount of tax information, will provide you with different options you have to file taxes for free. There are different criteria for each organization that files taxes for free. You will most likely be able to find one that applies to you. There are also many tax preparers that will file your taxes online for free if you pay them to prepare your taxes for you. Many commercial software packages allow you to file online for free as well. Once you purchase the software, you can file your federal taxes for no additional cost. Some programs will allow you to file taxes for free in your particular state. Others charge an additional fee.