Want to Get a Jump on Your Taxes? Tax E-filing Has Started
January 20th, 2012 - Posted by jeff
The IRS is now accepting tax e-filing, as of January 17, so you can file your taxes early. Why should you file early? If you are getting a refund, the earlier you file, the quicker you get your refund. Since so many people wait to file their taxes, the IRS has less to process in January and February, so they can process and return your refund quickly.
Need help filing your taxes? We've got you covered! We review all the top tax preparation experts to tell you who offers the fastest, easiest and most reliable tax prep assistance. And right now, TurboTax, one of our top-rated services, is offering NextAdvisor readers up to 40% off their tax prep services. To read all the reviews and get the latest deals, click here.
Get Ready for your Taxes with this Exclusive TurboTax Deal
January 12th, 2012 - Posted by polina
Get started on your taxes early! TurboTax is offering a limited-time exclusive deal for NextAdvisor readers to get up to 40% off their tax preparation service. Their online tax preparation and filing system is extremely easy to use and has the most robust automated deduction tools of any of the providers we reviewed. They walk you through every step of the process, asking easy questions in clear English.
Screenshot of TurboTax
TurboTax is perfect for consumers who don't need in-person guidance and are comfortable using a robust online tool to prepare and file their taxes. Want to know more? Check out our review of TurboTax and get the exclusive deal here.
I filed my taxes with TurboTax. Do I need to mail in anything?
April 18th, 2011 - Posted by Sarah
The following is an actual user-submitted question:
Q. I filed my taxes with TurboTax. Do I need to mail in anything?
A. First of all, pat yourself on the back! You filed your taxes by the deadline (today), so your question about TurboTax is timely. Luckily, you chose the service that is easiest to use and has the best online deduction-finder tools, so TurboTax would have let you know very clearly whether you needed to mail anything to anyone. You most likely don't have to anyway at this point, since your official forms (W-2s, 1099s, etc.) should have been furnished to the IRS some time ago. Just make sure to keep copies of your tax documents for at least three years in case of an audit.
Which online tax preparation service is best for me?
April 11th, 2011 - Posted by Sarah
The following are actual user-submitted questions:
Q. I need to file state tax for two states along with federal. I collect alimony and have charitable donations to claim, moving expenses, etc. Which online tax preparation service is best for me?
A. The deadline for filing our taxes is upon us! In your case, although you have two states to deal with, your situation doesn't appear too complicated. Choose TaxAct, the program with the best value, to save money on adding those two states for only $14.95 apiece.
Q. My wife is a real estate agent and is considered self-employed. I work for a company with a normal paycheck. Which online tax preparation service is best for me?
A. Here we recommend going with a service designed for the self-employed. H&R Block's Premium package offers easy-to-use tools covering a wide variety of tax situations and in-person assistance. The company also guarantees an actual human from H&R Block will assist you in the event that you are audited.
How long does it take for the IRS to receive my tax forms if I file online?
April 11th, 2011 - Posted by Sarah
The following is an actual user-submitted question:
Q. How long does it take for the IRS to receive my tax forms if I file online?
A. Filing your taxes online is so much easier and faster than doing the math by hand and sending the forms via snail-mail. The IRS will generally receive your online forms within one to two business days. Expecting a refund? Give it four to eight weeks. It'll be sooner if you elect a direct-deposit refund and if you file earlier in tax season.
Unemployed Tax Filing Guidelines
March 8th, 2010 - Posted by Tasha
Being unemployed is more common than not in the current economic climate. And it comes with it's own set of questions about how this might affect your 2009 tax filing requirements. If you spent some (or all) of 2009 unemployed and want to know if you need to file, we break down the basics below.
Federal Filing
1. Do I need to file taxes for 2009? The federal government requires that single persons who made over $9,350 in 2009 file. If you're married, file a joint return, and both of you are under 65 you must file if your gross income was over $18,700. IRS pub 501 clearly lays out whether you need to file federal taxes or not, so check there to see if you need to file.
2. What about unemployment benefits? For 2009, you must include all unemployment compensation you received over $2,400. That means you can deduct $2,400 from the total benefit amount you received, and you only need to pay federal taxes on the remainder. IRS pub 17 (hint: look at page 94) discusses the subject in more detail.
3. Can I deduct job search expenses? The good news is that you can deduct job search expenses, but like everything else in taxland, this comes with a number of caveats. To qualify, you need to be looking for a job that is in your present occupation. You can't deduct first time job hunt expenses (sorry recent college grads!). And you can't deduct if there was a "substantial break" between the end of your most recent job and the time you start looking for another job. You also need to have spent more than 2% of your adjusted gross income. If you meet all these criteria, you're in luck. IRS pub 529 has a complete list of job search expenses you can deduct.
State Filing
1. Do I need to file taxes for 2009? This is a slightly more complicated question, as each state has it's own guidelines. In general, you must file a state tax return if your gross income or adjusted gross income was more than the amount defined by your state's law. Check with the revenue/tax department for your state to see if you need to file.
If you're not an accountant, tax time can be very confusing and there are lots of complicated regulations. Whether you're employed or not, if you're looking to maximize your deductions you'll usually benefit by using an efiling service like TurboTax to file your taxes. TurboTax will guide you through the ins and outs of filing your federal and state taxes, and make sure you're getting all the deductions for which you qualify.
How to file a student loan deduction on your taxes.
February 19th, 2010 - Posted by Tasha
The following post in our Reader Question series is an actual user submitted question:
Q: I am a single student. What forms do I file to get my student loan deduction?
A: A student loan deduction is a federal tax deduction for qualified student loans. The specifics of what does and doesn't meet the definition of a "qualified student loan" are spelled out in the Student Loan Interest portion of the Form 1040. We suggest you look there to see if your situation qualifies you for the deduction.
If you are qualified, The IRS further states that you can claim the deduction if the following items apply.
- You paid interest on a qualified student loan in tax year 2009
- Your filing status is not married filing separately
- Your modified adjusted gross income is less than $70,000 ($145,000 if filing jointly)
- You and your spouse, if filing jointly, cannot be claimed as dependents on someone else's return
If you've cleared the hurdle and met all these conditions, can proceed with claiming the deduction on your Form 1040. You can also refer to Publication 970 for the complete IRS run down on the educational deductions and credits.
It may be that you qualify for additional credits or that other credits will be more financially beneficial to you. Because everyone's situation is different and it's hard to say what the best strategy is unless you're a tax professional, we recommend using an online tax preparation service to complete and file your tax returns. TurboTax has the most robust automated deduction tools of any of the providers we reviewed and will walk you through which deductions you may qualify for. They also guarantee you'll receive the maximum tax refund you can.
How much will it cost me to file with TurboTax?
April 9th, 2009 - Posted by Caitlin
The following post in our Reader Question series is an actual user submitted question. To maintain the integrity of the original question, we do not edit or change reader questions in any way.
Q: So, I will have to pay a federal fee of $49.95 and a state fee of up to $39.95 to file? I will be using the [TurboTax] Home & Business program for the first time.
A: The prices listed on the comparison chart refer to our suggested TurboTax package, the Deluxe package, which does cost $49.95 for the federal return, plus $39.95 for a state return. The Home & Business package is more expensive, because it offers a wider range of features and tools in order to handle more complex financial situations. For the Home & Business package, the federal return fee is $99.95, plus an additional $39.95 for a state return. Like many other tax preparation services, TurboTax has raised their prices as April 15, the tax filing deadline, approaches.
To learn more about TurboTax and to compare it with other online tax preparation services, see our reviews and comparison chart.
Is a free, online tax preparation service a good choice?
February 19th, 2009 - Posted by Caitlin
The following post in our Reader Question series is an actual user submitted question. To maintain the integrity of the original question, we do not edit or change reader questions in any way.
Q: Is a free tax service online (TaxAct) just as good as buying a program like TurboTax?
A: TurboTax, H&R Block and TaxAct all offer various online packages, including a free, very basic option for filing a federal return, as well as physical software. (The reviews on NextAdvisor.com are for the online services only.) If you only need to file a 1040EZ, you can use any of the free options. If a 1040EZ is not adequate for your tax needs, but you would still like to file your federal return for free, TaxAct's online service is your best option. All of these services will charge you a fee if you also need to file a state return. If you would prefer physical software to an online service, you can download a tax program or order software on a CD-ROM from TurboTax, H&R Block or TurboTax. This software will be more or less the same as the equivalent online tax preparation package.
So, yes, an online service is just as good as a physical program. But no, a free service is not just as good as one that you pay for, because it will only include a very basic federal return, and not a state return. The tax preparation package that you choose should correspond to the complexity of your financial situation. If you own a home business, for example, there are tax preparation packages specifically tailored to your needs, but they will be more expensive.
To learn more about online tax preparation services, see our reviews and comparison chart.
Choosing the right tax preparation service
February 18th, 2009 - Posted by Caitlin
I have never done my own taxes. And unfortunately, it's not because I have so much money and so many investments that I require the assistance of a professional. No, it's because up until now, my parents have always filed for me.
This year, though, is going to be different. This year I am doing my own taxes, for the first time ever. Since I'm feeling rather daunted by this intimidating task, I definitely want a tax preparation service to help me out. So naturally, I'm turning to the NextAdvisor.com reviews and comparison chart to help me decide which tax preparation service is right for me.
I need to file a federal return as well as a California state return. Since I need to file a state return, filing for free is not an option. But I would still rather pay a relatively low fee, especially since my financial situation is fairly simple. On the other hand, since I've never filed my own tax return before, I would prefer a service that will provide thorough and reassuring guidance throughout the process.
After reviewing the tax preparation and filing services comparison chart, I initially considered TaxBrain, because of my uncertainty about my financial needs. Rather than choosing a tax package right away, you fill out a short questionnaire and then TaxBrain generates the appropriate forms for your specific financial situation. I found this unique feature appealing. But after reading the tax preparation and filing services FAQ page, I determined that I should be able to fill out a 1040EZ, since my income is less than $100,000 per year, my taxable interest is not over $1,500, I have no dependents and I do not need to itemize my deductions. Since TaxBrain charges $14.95 to file a 1040EZ, while most of the other tax preparation services allow you to file one for free, I decided that TaxBrain would not be a cost effective choice for me.
Next, I considered TurboTax, because it is the top ranked tax preparation service on NextAdvisor.com, and according to the bottom line, it is the easiest service to use and offers the best online deduction finder tools. TurboTax also includes audit protection. However, I found TurboTax's state only fees to be a bit high, at $34.95. Also, since I am planning to file a 1040EZ, I won't be itemizing my deductions, so I would not benefit from that feature of TurboTax.
I then considered TaxAct, which is the cheapest of the services reviewed on NextAdvisor.com and, according to the bottom line, offers the best overall value for online tax preparation and filing. TaxAct does not offer audit protection, which would be nice to have, but given my financial situation, I am reluctant to spend the extra money for this assurance. TaxAct does offer unlimited email support, which I appreciate, since the process of filing tax returns is new to me.
After considering my options, I have decided to use TaxAct to file my federal and state returns. Although I would prefer a service with audit protection, I am willing to go without it in order to save money. With TaxAct, I can file my federal return for free and pay only $13.95 for my state return, which is definitely a good value. I am confident that TaxAct is the right tax preparation service for my needs.
To learn more about tax preparation and filing services, see our reviews and comparison chart.
Categories
Blog Archives
Popular Services Reviewed:
Credit Monitoring Services |
Find Us On:
Copyright© 2006 - 2012 NextAdvisor.com - All rights reserved.
Disclosure: NextAdvisor.com is a consumer information site that offers free, independent reviews and ratings of online services. We receive advertising revenue from most of the services we review. Our editors thoroughly research and whenever possible test each service we review and offer their honest opinions about each one. We are independently owned and operated and all opinions expressed on this site are our own.