Savvy Shopper: Some tips to making filing taxes a little less painful
During this time of year, income taxes are on many people's minds. Among a lot of considerations, the key goals are preparing your returns on time and accurately.
Since many taxpayers have to navigate through a maze of forms and deductions, this can be easier said than done. Fortunately, there are software packages to help. In the first place, they help uncover deductions, prevent errors, and forestall penalties. In addition, they ease and speed up the preparation itself.
Unfortunately, that also means you have to make another decision: Which software? If you are at this stage, help has arrived! In this article, I will provide information about free (or inexpensive) tax preparation:
• Downloadable: Preparing taxes using software on your computer is often faster than doing it online. In addition, you physically possess your tax files and are not at the mercy of a software vendor (who could go out of business!) to make your records available. Unfortunately, free desktop tax software is no longer available. However, downloadable versions can be purchased for as little as $40 through TaxAct (www.taxact.com). In the past, I used TaxAct and it worked very well up until a few years ago. Based on my experience, I suggest approaching this provider carefully. It’s just one example, but I can’t guarantee that your information will be secure.
• Online preparation: If your tax situation has any complications, most of the services (with one exception) mentioned in this section will be inadequate. However, if your tax situation is simple, all remain highly viable options. Almost every free online tax preparation tool is for a highly basic edition that covers the 1040 form and few-to-no schedules. Services that offer the ability to file federal taxes for free online include:
– Free Tax USA (www.freetaxusa.com): Carries comprehensive capabilities including the 1040 and all schedules.
– Better-Than-Basic: H& R Block Free Edition (www.hrblock.com/online-tax-filing/free-online-tax-filing/) offers the 1040 form and some schedules for a few deductions and credits.
– Bare Bones: The following packages are more basic, but are still reputable: TurboTax (turbotax.intuit.com/personal-taxes/online/free-edition.jsp), TaxAct Online (www.taxact.com/individual-taxes/online/free/), and Tax Slayer (www.taxslayer.com/efile/free-tax-filing). Please keep in mind that these free offers carry stipulations. Go to the websites for more information.
• Additional information: Although you might not expect it, the Internal Revenue Service offers a page (www.irs.gov/uac/Free-File:-Do-Your-Federal-Taxes-for-Free) to help taxpayers. This website serves as a clearinghouse for various free online services. Among its features is a tool to guide users in selecting the best matching service. Although they state that you must have an adjusted gross income (AGI) of $73,000 or less to take advantage, realize that this statement is based on their assumption that you must file a state income tax return. Since Texas has no state income tax, many of the services could end up being free. As if we needed another advantage to living in this great state!
• Assistance: If you don’t have a computer or are uncomfortable with doing taxes electronically, you may be eligible for free assistance with preparing your income taxes. The Coalition for Community Assistance Volunteers (www.ccavlubbock.org/free-tax-prep) offers this help to individuals with an income of less than $32,200 up to a family of five that makes less than $57,000. Go here for contact information: www.ccavlubbock.org/contact-us.
Unfortunately, income taxes are and will probably remain a complicated subject. Fortunately, Savvy Shoppers have a wide variety of free tools to help deal with it. In spite of their ability to make many feel less than civilized, it has been said that taxes are the price of a civilized society. At least that’s the theory!
Of course, there is a wide variety of ways to handle taxes and the Savvy Shopper would love to hear about them. Please visit and "Like" our Facebook site (Click www.facebook.com/LubbockSavvyShopper or log on to Facebook and enter “Lubbock Savvy Shopper” in the search tool) or write us at SavvyShopperLubbock@gmail.com and let us know about your ideas.
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SEAN FIELDS is the A-J’s Savvy Shopper. Read his columns Sundays and Wednesdays. Email him at SavvyShopperLubbock@gmail.com, like his Facebook page at Facebook.com/LubbockSavvyShopper, or see previous columns and deals at lubbockonline.com/savvy-shopper.
This article originally appeared on Lubbock Avalanche-Journal: Savvy Shopper: Some tips to making filing taxes a little less painful
