Filing your Own Taxes, Preparations and Considerations Part One

Yes, finally! That time of the year is finally here when you can save a little bit of your wages and tuck the rest in a piggy bank. You can raise your glass and jump on your kids’ cheap bunk beds in glee, It’s Tax Season! But have you ever considered filed your own? If not, there are many options to consider. It may or may not be the best route for you.

First of all, when preparing consider one of three options, manually, electronically, or going to a tax professional.

Manually: You will need to prepare your taxes like back in the day with a piece of paper and pencil. Download the correct forms from the IRS website or you can pick them up from your local library.

Electronically: You can use tax preparation software or an online service. They all vary depending on the complexity of your returns. If you meet the certain pre-determined income requirements, you can file online for free using the IRS Free File Service.

Tax Professional: You can pay someone to do your taxes for you. It’s best to go to a well respected certified public accountant or tax attorney. Again, prices vary.

*Different factors will inevitable decide for you if it’s the best choice to hire a professional or to prepare your taxes on your own.

Consider self filing if any of the following statements apply to you.

1. You are pretty familiar with the tax-filing process.
2. You are comfortable and good at researching if a question may arise during the filing process.
3. You keep very good financial records and are very well organized.
4. You have only had one employer during the past year and you haven’t moved within the year.
5. You are very computer literate and have no problems with navigating online services.

Consider hiring a professional financial advisor if one of the following applies to you.

1. You are very much intimidated by the tax-filing process.
2. You simply don’t have the time to devote to doing them correctly.
3. You’ve had a major change in your life such as starting a business or the death of a spouse.
4. You have more than one source of income and/or you are self-employed.
5. You desire the protection of an IRS agent in case you get audited.

What are the advantages to filing electronically?

1. Accuracy is the main thing. Inaccuracies are the main things that flag an audit so doing this electronically will increase your chance of complete accuracy on returns.
2. It’s all about Simplicity. Online tax services work like a charm and are super easy to use. They walk you through step by step and prepare the forms for you accordingly.
3. The Efficiency of it. The best part about this is you can file your state and your federal returns simultaneously. And, they will be filed instantly, giving you a receipt immediately after it’s processed.

***Stay tuned and read Filing your Taxes, Preparations and Considerations Part Two for where to turn to for help and how to gather all your tax records.

Article Source:http://www.articlesbase.com/taxes-articles/filing-your-own-taxes-preparations-and-considerations-part-one-1650728.html