IRS Tax Tips

Choosing between tax software, tax preparation service and filing online

Would you like to know more about filing taxes online? Most people donít like doing their taxes and that is where tax software and tax preparation services come into their own. If you have very complicated tax returns, using a tax preparation service is the ideal way to get your taxes done; otherwise, buying software or filing your taxes directly online is the way to go.

It is worth deciding if you really do need a tax preparation service or if you could benefit just as much from a software program. Tax preparation specialists can be expensive to use if you have a fairly basic tax return with no special circumstances. Software can give you all the help you need in this case for a lot less money.

There are many different brands of tax software available. A good software program will make preparing all of the forms easier and will save you a lot of money instead of hiring the services of a tax preparation specialist. If your taxes are fairly basic, doing taxes electronically with software is an obvious choice as you will save time and money.

The first step in finding the best software to use is to check the customer reviews on websites to narrow down your choices. It is important to compare the features and the prices of the software as the most expensive ones do not necessarily have all of the options that you may want or need.

Often, it is ideal to buy the deluxe version of the tax software in order to be able to file both federal and state tax forms. The added benefit of this is that these will include many additional features such as tax advice, IRS publications and other information along with accurate form preparation.

Tax Software Requirements - It is essential that you ensure your computer meets the minimum system requirements of any software program that you download or buy. It is also worth investing in a printer so that you can make a hard copy of the forms that you file, even if you file them electronically over the internet. Also make sure that you use the current version of any tax software program as it changes every year along with tax laws.

Remember that you might even be able to deduct the cost of your software from your federal income taxes so it is worth spending a little more to ensure that you have the best. You may not necessarily need to buy a specialized software program as there are services available on the internet that allow you to prepare and file your return directly from the website.

In conclusion, choosing between tax preparation service and software is relative to the complexity of your taxes. When you decide to complete your taxes using software, be sure to check out the customer reviews, decide on the proper package, find the most comprehensive package for least amount of money, be sure you have a printer and remember you can file directly online.

When word gets around about your command of software facts, others will turn to you for expert advice!!

At TaxACT, our products are developed with 5 key elements in mind:

March 2015
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Upcoming Tax Dates

March 2All businesses
File information returns (for example, Forms 1099) for certain payments you made during 2014.

March 2Farmers & fishermen
File your 2014 income tax return (Form 1040) and pay any tax due - Details

March 2Payers of gambling winnings.
File Form 1096 along with Copy A of all the Forms W2G you issued for 2014. If you file Forms W2G electronically, your due date for filing them with the IRS will be extended to March 31. The due date for giving the recipient these forms remains February 2.

March 2 All employers
File Form W3, Transmittal of Wage and Tax Statements, along with Copy A of all the Forms W2 you issued for 2014. If you file Forms W2 electronically, your due date for filing them with the SSA will be extended to March 31. The due date for giving the recipient these forms remains February 2.

March 2 Large food and beverage establishment employers
File Form 8027, Employer's Annual Information Return of Tip Income and Allocated Tips. Use Form 8027T, Transmittal of Employer's Annual Information Return of Tip Income and Allocated Tips, to summarize and transmit Forms 8027 if you have more than one establishment. If you file Forms 8027 electronically, your due date for filing them with the IRS will be extended to March 31.

March 2 Wagering tax
File Form 730 and pay the tax on wagers accepted during January.

March 2 Heavy highway vehicle use tax
File Form 2290 and pay the tax for vehicles first used in January.

March 10 Employees who work for tips
If you received $20 or more in tips during February, report them to your employer - Details

March 11 Communications and air transportation taxes under the alternative method.
Deposit the tax included in amounts billed or tickets sold during the first 15 days of February.

March 13 Regular method taxes
Deposit the tax for the last 13 days of February.

March 16 Corporations
File a 2014 calendar year income tax return (Form 1120) and pay any tax due - Details

March 16 S Corporations
File a 2014 calendar year income tax return (Form 1120S) and pay any tax due - Details

March 16 S Corporation election
File Form 2553, Election by a Small Business Corporation, to elect to be treated as an S corporation beginning with calendar year 2015. If Form 2553 is filed late, S corporation treatment will begin with calendar year 2016.

March 16 Electing larger partnerships
Provide each partner with a copy of Schedule K1 (Form 1065B), Partner's Share of Income (Loss) From an Electing Large Partnership, or a substitute Schedule K1. This due date applies even if the partnership requests an extension of time to file the Form 1065B by filing Form 7004

March 16 Social security, Medicare, and withheld income tax
If the monthly deposit rule Page 6 Publication 509 (2015) applies, deposit the tax for payments in February.

March 16 Nonpayroll withholding
If the monthly deposit rule applies, deposit the tax for payments in February.

March 25 Communications and air transportation taxes under the alternative method.
Deposit the tax included in amounts billed or tickets sold during the last 14 days of February.

March 27 Regular method taxes
Deposit the tax for the first 15 days of March.

March 31 Electronic filing of Forms W2
File copies of all the Forms W2 you issued for 2014. This due date applies only if you electronically file.

March 31 Electronic filing of Forms W2G
File copies of all the Forms W2G you issued for 2014. This due date applies only if you electronically file.

March 31 Electronic filing of Forms 8027
File Forms 8027 for 2014. This due date applies only if you electronically file.

March 31 Wagering tax
File Form 730 and pay the tax on wagers accepted during February.

March 31 Heavy highway vehicle use tax
File Form 2290 and pay the tax for vehicles first used in February.

March 31 Electronic filing of Forms 1097, 1098, 1099, 3921, 3922, and W2G.
File Forms 1097, 1098, 1099, 3921, 3922, and W2G with the IRS. This due date applies only if you file electronically. Otherwise, see March 2. The due date for giving the recipient these forms generally remains February 2. View More Tax Dates