Save Money on Tax Prep and Get Your Refund
Faster (ARA) - Regardless of whether you are entitled to a refund or owe money, you can easily save some cash this tax season by using tax preparation software. And thanks to electronic filing offered by the IRS, receiving your refund faster has never been easier. Virtually all taxpayers can prepare, print and e-file their federal return for free by using tax preparation software offered by the Free File Alliance LLC, an IRS-approved group of private sector tax software companies. Taxpayers can choose whatever program they prefer. For taxpayers who must also submit a state return, most alliance members offer a low-cost way to transfer their federal data to quickly complete the state form. "Tax preparation software makes preparing returns easy and fast through simple interview questions and robust tools to identify deductions for the largest possible refund,” explains Leigh Aragon, spokeswoman for 2nd Story Software, Inc. “The current economy has helped many taxpayers realize that using a quality product like TaxACT is less expensive and just as accurate as having your taxes prepared by an accountant or CPA." The average tax-preparer fee for an itemized 1040 Form with Schedule A and a state tax return is about $205, according to a survey by the National Society of Accountants. The average cost to prepare a Form 1040 and state return without itemized deductions is $115. On the other hand, using tax preparation software to prepare your Federal and State returns can cost as little as $13.95 (when using TaxACT Standard to prepare your federal return for free and to e-file your state return for $13.95). To receive your refund in the fastest way possible, the IRS recommends e-filing with direct deposit. "These are tough times, and e-file is the best way for people to get cash in their pocket quickly," says IRS Commissioner Doug Shulman. "Filing electronically with direct deposit can get refunds to taxpayers in as few as 10 days. Combined with important changes in the Free File program, we believe e-file is a better option than ever before for the nation's taxpayers." It can take four to six weeks to receive a refund check if a return is sent via standard mail. E-filing is considered just as safe -- if not safer -- than mailing your return because the data is encrypted. E-filing helps the IRS process returns faster, allowing you to receive your refund sooner. Even taxpayers who owe money are encouraged to e-file now and pay later (on April 15) via direct withdrawal. The use of e-filing has steadily increased over the last few years, thanks in part to the partnership between the IRS and the Free File Alliance LLC. Since the alliance was created in 2003, more than 24 million returns have been prepared and e-filed through the program, with nearly 4.8 million tax returns filed through Free File last year. More information about e-filing and a list of all companies participating in the Free File Alliance can be found at www.IRS.gov.. Courtesy of ARAcontent |