Tax software programs are an effective way to save you money on your taxes. Furthermore, they help you avoid errors such as arithmetic ones that could result in IRS notices or penalties.
When selecting tax software, there are plenty of options to consider. Ultimately, the best choice for you depends on your budget and individual tax situation. Here are some tips for finding the ideal solution tailored to your individual requirements.
Cost
Filing your taxes using a tax software program can be an affordable option depending on your needs and return complexity.
The ideal tax software will organize your taxes, identify deductions and credits that apply to you individually, and ensure maximum refund guarantees. Most programs also check for errors, omissions and other issues that could lead to audits or fines.
Tax software typically features two primary interface types: interview-style questionnaires and form-based step-by-step guides. Select one that is easy to use with friendly prompts that use straightforward terminology.
Most of the best tax software will store your previous returns online for convenient access, saving time and effort when filing another return. It’s especially beneficial to self-employed filers who need to track receipts and mileage. Furthermore, advanced users have access to extra features, tools, and calculators designed specifically with more complex tax situations in mind.
Availability
When looking for tax software, there are a variety of options to choose from. When selecting one that meets your requirements, take into account factors like cost, user experience and form availability when making your choice.
The ideal tax software should also offer accuracy and max refund guarantees to reimburse you for any IRS penalties or interest if the program fails to file your return correctly. If your taxes are more complex, you may want to consider hiring a tax preparation service with expert assistance; however, this usually comes at an additional cost.
Top tax software companies support a range of forms, including state and federal returns. All offer an accuracy guarantee to prevent costly mistakes by checking your return for errors before it goes to the IRS. Some even provide access to a tax pro or audit assistance; however, this usually comes at an extra cost.
Features
The ideal tax software should be user-friendly, accurate in preparation and maximize refunds. Furthermore, they should support a wide range of scenarios and offer helpful support options.
TurboTax provides an accessible online tax preparation service that’s user friendly. Its user interface is uncomplicated, and you can snap a picture of a W-2 form to have most of your information filled in automatically.
Its 100% Accuracy Guarantee is an impressive feature, and you won’t pay extra to have the software review your return for errors. Furthermore, it provides a Deduction Maximizer to help identify potential tax savings opportunities such as deductions for working from home or unemployment income notations.
Students filing their taxes have several great options to choose from, including Student Loan Interest on its free tier and an app that lets you upload a photo of your W-2 to claim tuition deductions for current students in the household.
Support
The ideal tax software can save you time and money when filing your returns. Furthermore, it may identify deductions and credits that could increase your refund amount.
It’s essential to note that most online tax preparation services provide a range of support options, such as an FAQ section or knowledge base, video tutorials and user forums. Some providers even provide audit defense assistance or access to a tax professional.
A comprehensive tax software solution should provide all the forms and schedules necessary for filing federal and state taxes. Some programs even enable you to upload scanned documents, saving time on data input.
Most tax software vendors offer plans with tiered pricing, offering more features at higher costs. When selecting which tier to select, be sure to carefully weigh the costs against what your small business actually requires.