The only thing more bewildering than filing taxes is deciding which tax software to use. There are free and paid ones that can be used online or installed locally, some are complex programs while others are easy to use. There are versions for individuals and others meant for companies. The bottomline is that it's important to find one that matches the complexity (or lack thereof) of the filing requirements.
For starters, the easy solution for filing needs that are very basic is to use free e-file. It's good enough for a 1040EZ filing with no mortgages, medical expenses, childcare, etc. These are free programs provided by the IRS in partnership with prominent software companies.
While such a program would be very basic, it can always be upgraded to include paid add-ons like maybe a state filing. The e-file programs are not just simple and free, but also have fast turnarounds and someone who accepts returns via direct deposit will find a return in their account within eight days.
People using these programs have access to plenty of tools, including deduction helpers, walk-through videos and audit support centers. Those who find the free version isn't capable of dealing with the filing can upgrade to a premium version right there and continue with the filing. But which one of these programs to choose is still an open question.
The easiest way to settle this matter is to just use the same program that was used for filing taxes in the past year. Most of these programs are incompatible with each other, so data from previous years cannot be imported unless it was filed using the same program. Note that a consulting a CPA first may be advisable for someone who's not sure about how to use a program like this for filing taxes.
But it's not usually much of an issue, and every person and company will find tax software that is just about right for their filing needs. All that's required is for the person doing it to know how to use the program. This is one more reason why it's better to find one program that can handle the filing, and use the same one every year.
For starters, the easy solution for filing needs that are very basic is to use free e-file. It's good enough for a 1040EZ filing with no mortgages, medical expenses, childcare, etc. These are free programs provided by the IRS in partnership with prominent software companies.
While such a program would be very basic, it can always be upgraded to include paid add-ons like maybe a state filing. The e-file programs are not just simple and free, but also have fast turnarounds and someone who accepts returns via direct deposit will find a return in their account within eight days.
People using these programs have access to plenty of tools, including deduction helpers, walk-through videos and audit support centers. Those who find the free version isn't capable of dealing with the filing can upgrade to a premium version right there and continue with the filing. But which one of these programs to choose is still an open question.
The easiest way to settle this matter is to just use the same program that was used for filing taxes in the past year. Most of these programs are incompatible with each other, so data from previous years cannot be imported unless it was filed using the same program. Note that a consulting a CPA first may be advisable for someone who's not sure about how to use a program like this for filing taxes.
But it's not usually much of an issue, and every person and company will find tax software that is just about right for their filing needs. All that's required is for the person doing it to know how to use the program. This is one more reason why it's better to find one program that can handle the filing, and use the same one every year.
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