Should You Prepare Your Taxes Online?
Posted on April 23, 2010 | No Comments
Darcie Duttweiler asked:
More than 80 percent of taxpayers use some sort of assistance-whether it’s an accountant or a desktop program-when preparing their taxes, and increasingly more and more are turning to an online tax preparation site for help filing. With a plethora of options out there, from TurboTax to TaxAct, you might be wondering why you should turn to an online tax site. Discover the advantages below.
Pros of Using Online Tax Sites
One big perk of Internet tax software is that many companies offer taxpayers a free version of their software if they meet specific criteria-typically making within a specific income bracket. Even if you don’t qualify for free or discounted pricing on online tax software, their programs tend to be fairly affordable.
Another benefit of online tax software is that there is no installation needed. You can simply visit the site from any computer-meaning you’re not tied down to the computer you installed it on. You can access your information from anywhere, which is saved automatically for you. Also, when the program saves your information, it doesn’t require any space on your hard drive-allocating that memory for better things.
One of the biggest pros of Internet tax software is that it updates automatically. You don’t have to worry about installing any updates or downloading any extra software.
Perhaps the No. 1 bonus of these websites is their free e-filing option. With most desktop tax software you have to pay to file online. When you file your taxes electronically you can get your return quickly-sometimes as soon as one week-and directly into your bank account.
While all of this sounds great, you might be worrying about the security level of these websites. There’s no need to fret-all online tax software uses the same encryption technology as online banks, so your information is safe and secure.
What are the Cons of Online Tax Sites?
With the many pros of choosing an online tax preparation site, there are, of course, a few downsides to consider when determining which program is right for you.
If you need to file more than one federal tax return, you may run into some issues. With a downloaded program, you can file up to five returns. So, if you’re compiling a return for Junior too, it may not be that beneficial to go the online route.
Also, there are typically no fees when filing a state tax return-unlike the online service providers, which will charge you an extra fee.
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More than 80 percent of taxpayers use some sort of assistance-whether it’s an accountant or a desktop program-when preparing their taxes, and increasingly more and more are turning to an online tax preparation site for help filing. With a plethora of options out there, from TurboTax to TaxAct, you might be wondering why you should turn to an online tax site. Discover the advantages below.
Pros of Using Online Tax Sites
One big perk of Internet tax software is that many companies offer taxpayers a free version of their software if they meet specific criteria-typically making within a specific income bracket. Even if you don’t qualify for free or discounted pricing on online tax software, their programs tend to be fairly affordable.
Another benefit of online tax software is that there is no installation needed. You can simply visit the site from any computer-meaning you’re not tied down to the computer you installed it on. You can access your information from anywhere, which is saved automatically for you. Also, when the program saves your information, it doesn’t require any space on your hard drive-allocating that memory for better things.
One of the biggest pros of Internet tax software is that it updates automatically. You don’t have to worry about installing any updates or downloading any extra software.
Perhaps the No. 1 bonus of these websites is their free e-filing option. With most desktop tax software you have to pay to file online. When you file your taxes electronically you can get your return quickly-sometimes as soon as one week-and directly into your bank account.
While all of this sounds great, you might be worrying about the security level of these websites. There’s no need to fret-all online tax software uses the same encryption technology as online banks, so your information is safe and secure.
What are the Cons of Online Tax Sites?
With the many pros of choosing an online tax preparation site, there are, of course, a few downsides to consider when determining which program is right for you.
If you need to file more than one federal tax return, you may run into some issues. With a downloaded program, you can file up to five returns. So, if you’re compiling a return for Junior too, it may not be that beneficial to go the online route.
Also, there are typically no fees when filing a state tax return-unlike the online service providers, which will charge you an extra fee.
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