Sure, you can pay someone or a company to complete your tax return for you, but the majority of us would rather spare this expense if at all possible, or at least cut it down to a reasonable size. The truth is simple: If you have a basic sort of tax return, complete with a house, picket fence, dog and 2.3 kids, you can complete your own tax return and save yourself some serious cash. Even with a few extra deductions, like business expenses that haven’t been reimbursed (mileage driven as well as physical supplies), you shouldn’t shy away from the relatively intimidating IRS forms.
(If you’re self-employed and/or have a lot of deductions, it is recommended to hire an accountant to keep your finances in legal order.)
For starters, get yourself organized. As soon as tax-related documents start to come in, put them in a pre-designated spot, like a file or even a shoebox. If you bought or sold a home during the year, be sure to have all of this paperwork handy as well. This way, when you sit down to concentrate on nothing but our taxes (the second step), everything necessary will be together.
If you plan on completing your taxes the old fashioned way, sharpen your No. 2 pencils and prepare to do lots of reading in the archaic workbooks that accompany the forms. If you’ll be doing your taxes on the computer, whether you decide to e-file or mail in a paper return, you’ll need to decide which avenue is best for you to travel upon. For instance, will you be purchasing software at your local computer store, or will you be using downloading a program from the net? Maybe one of those sites that offers tax assistance and doesn’t require a download is a better option for you, especially if you’re new to this scene and aren’t exactly tax booklet savvy. Most websites allow you to do all of the tax preparation work before paying for the service. Whatever you choose, rest assured that you can print and file your taxes through the mail (certified mail is recommended to prove that they were sent and received by the feds).
There are quite a few perks to the e-file system, many that you may or may not know about. First, you might be able to file for free. “Free-file” providers are available at the IRS website , plus all of the requirements for utilizing this complimentary service. Other perks include
- Almost immediate access to find out if your return was accepted or rejected. If rejected, the reasons why and directions on how to fix it.
- A speedy check in the mail for any refund you’re entitled to.
- A direct deposit of any refund directly into your personal bank account in 15 days or less depending on the day of the week you submit your return. (The feds release their funds on Friday.)
- Access to filing any and all state returns.
If you’re in doubt of your ability but want to give tax preparation a try, there are sites (such as H&R Block ) that allow you to input all of your information (they walk you through absolutely everything), see how you do, check for errors and give you your refund amount or amount due, then have you to pay before you e-file or print your return. If you don’t like your results or feel you missed something, you haven’t lost any money, just some time. You can always have your accountant prepare your return, but be sure to compare your results an check out how accurate you were when attempting to file your own tax return.
