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Top 5 Reasons to File Online
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It's 2009. You send and receive mail online. You organize your photos online. You even get driving directions, check movie show times and buy used ticket stubs from the 1996 World Series online. So why don't you file your taxes online?
Common excuses range from the understandable: "My tax situation is more complicated than most people's" to the flimsy: "Will my sensitive financial information be secure?," and the downright silly "I've done it the old-fashioned way for so long." But outside of the relatively small set of taxpayers who really do have special circumstances that require professional assistance, you will have a hard time convincing me that filing online doesn't make sense.
Here's a case for why this should be the year you finally take your tax return to the Web.
1. It is just plain easier.
Filing your taxes online is simple. You won't need to track down the right forms or schedule an appointment with an accountant. And forget about poring over IRS publications, struggling with confusing directions and scouring Internet message boards for tips.
Software like Turbo Tax Online will ask you all of the necessary questions in plain English. Simply enter the answers and the software does all of the hard work, placing your numbers on the correct line of the proper form, then performing all of the necessary calculations. What could be easier than that?
2. It will save you money.
Any way you slice it, preparing your taxes online will save you money. Compared to accountant fees that can be upwards of several hundred dollars, the cost of purchasing online software (which ranges from zilch to around $100, depending on the state you live in and your unique tax needs) is a bargain.
Even if you use paper and pencil to complete your return, software like Turbo Tax is a less-expensive way to go. Think about the time you'll save. No need to read IRS directions front-to-back. No need to take your forms to the post office. No need to check your addition and subtraction. (Are you noticing a theme here?)
I'm a firm believer that time = money. My time, whether it means extra free time on the couch or extra time I could be out earning money, has a value. And so does yours. The value of the time you'll recoup by preparing and filing your taxes online should easily exceed the software's upfront cost. Don't believe me? Check out this calculator to see how much you'll save thanks to recapturing several hours of your life.
3. It will improve the accuracy of your return.
Errors in your tax return can delay your refund, cause months of headaches and even get you into legal trouble. Tax-preparation software includes an error-check feature that spots any glaring mistakes. Plus, Turbo Tax offers an extensive menu of thrift-store value estimates, which eliminates the guesswork (and minimizes the audit risk) associated with trying to pinpoint values for your charitable donations.
The software will even transfer information from last year's return, and offers to fetch W-2 data directly from your employer—both of which are among the areas where the IRS sees the most audit-triggering errors.
Still think an accountant can do a better job than you? Don't be so sure. A recent study, reported on by Andrea Coombes at The Wall Street Journal Online examined a small sample of paid-preparer returns and found that 61% were done incorrectly. Ouch.
4. It is the fastest way to get your refund.
Want to receive your refund fast? Have the IRS deposit it directly into your bank account. Want it even faster? File electronically with direct deposit. As a traditional paper filer, you can't go this ultra-fast route, meaning your return would spend several days in transit and several more days waiting for the IRS to manually enter your data.
Online software like Turbo Tax provides the fastest possible way to get your refund. And if you typically use a paid preparer, the 24/7 nature of filing online eliminates the need to wait your turn in line.
5. It will give you a head start on next year's taxes.
Despite the increased focus on income taxes in the period leading up to April 15 each year, it's no secret that taxes are a vital part of your year-round financial picture. Taking your taxes to the Web can help you treat them just that way.
After finishing and filing your return electronically, take advantage of the other tools available through the software. If you received a big refund, adjust your withholding through Form W-4 so that you can take home more pay over the course of the year. If you find yourself forking over a big check to Uncle Sam, determine if it makes sense to pay estimated taxes quarterly. And eliminate the last-minute scramble to make and catalog your charitable contributions by signing up for a service that allows you to manage this key deduction source 365 days a year.
File your taxes online and you'll reap the rewards this tax season and in years to come.
Do you plan to file your taxes online this year? Tell us why... or why not.
Message Edited by Anthony_Catalano on 01-23-2009 11:43 AM
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