Preparing and filing tax returns has never been easy for us. Especially to those who are not from an accounting background or have analytical bend of mind find it difficult to understand the provisions of income tax laws and how they can get benefit from them. As a result many people do not calculate their taxes correctly; they end up paying more or less to IRS. To make life easy for all the taxpayers IRS has developed computer software which guides you through the steps of preparing income tax and even submits the same to IRS online. This option is less cumbersome and comes almost free of cost for eligible taxpayers. Broadly speaking there are two options available through which one can file their tax returns online:
- Those with Adjusted Gross Income of $ 58,000 or less – In case your Adjusted Gross income is lesser than $ 58,000 have the option of choosing one of IRS recommended software which will help them prepare and file their income tax returns. One can visit the official website of IRS to get the list of software which is recommended by them. The website also has ample amount of information which will help you select the software which will suit your requirements. Once you select your software you will be further directed to the company which has developed that particular software where you will be further guided on your income tax preparation.
- Those with Adjusted Gross Income above $ 58,000 – Such taxpayers cannot make use of the above option for filing their returns electronically. They can still visit the IRS’s website where free forms are available. They can fill the details in those forms and file their returns online. They will not be assisted by any software in this process though.