Internal Revenue Service 2012 tax season opened on January 17 and income tax preparation is now a priority. But at least you can save on the significant cost of having your return done for you. You can e-file your own income tax return free if you’re one of the taxpayers who qualify (most do). If you don’t qualify, there are other ways you can reduce your costs.
If your adjusted gross revenue (AGI) in 2011 was $57,000 or less, then you qualify to use the Internal Revenue Service free file mini-site. This is a free tax preparation and digital submitting site for those taxpayers who fall under the AGI limit which was developed by a partnership among the Internal Revenue Service and tax software program companies. If you qualify, you can find a free file corporation thru the Internal Revenue Service.
If your Adjusted Gross Income is above the limit, you can still e-file your income tax return free thru online tax preparation companies – but you will have to pay to file your state tax return. So you need to consider how much filing your state tax return will cost. Of training course, this isn’t a problem for those who live in a state with very low or no state taxes.
You can also use a Free File Fillable Form to do your filing. This is like a paper federal tax return but you can fill it in on the net and file it free of charge, You do need to be able to prepare your own return, but you can use the free on the internet tax estimation software package and transfer the information and you should have preceding tax returns as a guide, especially if very Minor has changed. However, this also does not include your state tax return.
If your tax situation is complex, you can probably justify the cost and might be safer with a tax preparer who is familiar with your particular situation and who has verified reliability. But you could try negotiating a lower price. Otherwise an on the net investigation will turn up a number of different companies whose costs may vary considerably. Again, these fees are based on an ordinary tax situation; anything more complex will attract added costs.
You should also consider the qualifications and experience of the tax preparer and not just go for the lowest costs. Remember, you could be lured in by low marketed charges but could find on your own having to pay additional for services which would normally be included. Make sure up front exactly what will be included in the fee. Remember, you could find your self spending a lot more in tax than the funds you save by using an inferior tax prepare who makes a mistake with your tax return.
Whatever you do, don’t go for a federal tax refund anticipation loan, as you will get your refund very speedily (usually within a week or two) thru e-submitting anyway if you elect to have the income tax refund directly deposited to your account, and these are expensive options.
All in all, doing your taxes is not a task anyone truly looks forward to. But if you are arranged and keep on top of it, you can pay very Little or even get your tax preparation free, and this makes the effort worthwhile,