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 dont 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:

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Upcoming Tax Dates

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

June 10 — 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 May.

June 14 — Regular method taxes

Deposit the tax for the last 16 days of May.

June 15 — Individuals
If you are a U.S. citizen or resident alien living and working (or on military duty) outside the United States and Puerto Rico, file Form 1040 and pay any tax, interest, and penalties due. If you want additional time to file your return, file Form 4868 to obtain 4 additional months to file - Details

June 15 — Individuals
Make a payment of your 2016 estimated tax if you are not paying your income tax for the year through withholding (or will not pay in enough tax that way). Use Form 1040-ES. This is the second installment - Details

June 15 — Corporations
Deposit the second installment of estimated income tax for 2016 - Details

June 15 — Social security, Medicare, and withheld income tax
If the monthly deposit rule applies, deposit the tax for payments in May.

June 15 — Nonpayroll withholding

If the monthly deposit rule applies, deposit the tax for payments in May.

June 27 — Communications and air transportation taxes under the alternative method.
Deposit the tax included in amounts billed or tickets sold during the first 16 days of May.

June 29 — Regular method taxes
Deposit the tax for the first 15 days of June.

June 30 — Wagering tax
File Form 730 and pay the tax on wagers accepted during May.

June 30 — Heavy highway vehicle use tax
File Form 2290 and pay the tax for vehicles first used in May.

June 30 — Floor stocks tax for ozone depleting chemicals
(IRS No. 20). Deposit the tax for January 1, 2016.

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