Pages

Subscribe:

Online Tax Return Preparation.

This year you can join the 53 million taxpayers who selected online tax returns last year. These people spent a lot less time than you did with your paper form. They also had better support than you had when you were sitting at the dining room table under a mound of paper. They often paid less than you did if you went to an accountant. In short, the process was fast, easy, secure, and affordable.

It just makes good sense to do your Tax Return Filing online, and you have apparently figured that out because you're looking for an online tax prep vendor. Before you pick one, you should gather together all of the tax documents you received from work, your banks, your student loan lender, and any other documents that will support the deductions you want to claim. Next you can select a vendor based on whatever features you most need. If you live in a state that requires you to pay a state income tax, you should look for a vendor that offers that service and compare rates.

Completing Your Online Tax Return

The process itself is pretty simple. All you have to do is to enter the data from your tax documents into the appropriate fields on your computer screen. The program will actually walk you through each line of the 1040 form best suited to your financial situation. Once all of the boxes are filled in, the program will offer to review your return to look for any unusual entries that might alert you to an error. This is a very important step because studies have already shown that online returns have fewer errors than manual ones. That means fewer problems with the IRS and faster refunds.

If you're satisfied with your return, you can pay for the service at that point. This will allow you to select your preferred method of Tax Filling. You will be able to print your completed return, and you should make a paper copy of it for your records whether you choose to snail mail it or to file in electronically. If you elect the latter option, you will have to provide an "electronic signature." That means you must provide specific information from a specific line on your previous year's return. Once your form is sent to the IRS, you'll even get a confirmation of receipt directly from the IRS. Finally, you can pay your tax online in a variety of ways, or, if you have a refund coming, you can have it in days with direct deposit.

Tips for Finding the Right Tax Accountant

Taxpayers of all types can benefit from hiring a tax accountant. But before you spend your hard-earned cash, here's some simple steps you can take to protect yourself, to find the right professional for your situation, and some questions to ask.

Understand Why You Need a Tax Accountant

You should take some time to focus on exactly what you need your tax accountant to do. Here are some common situations:

  • Preparing your own taxes is time-consuming, stressful, or confusing.

  • You want to make sure your tax returns are accurate.

  • Your tax situation is pretty complex, and you need specialized advice and tips.

  • You would like to pay as little taxes as possible, and need detailed planning and advice.

  • You are facing a tax problem, such as filing back taxes, paying off a tax debt, or fighting an IRS audit.

  • You run a business, invest in the stock market, own rental property, or live outside the United States.

Questions to Ask a Tax Accountant

The tax industry is constantly changing and tax professionals are subject to various federal and state regulations. Here are some questions you can ask to help ensure you find an experienced, trustworthy tax accountant:

  • What licenses or designations do you have?

  • How long have you been in the tax business?

  • What tax issues do you specialize in?

  • Do you have the knowledge and experience to handle my tax situation?

  • What are your fees?

  • Do you outsource any of your work? Do you perform the work personally? If not, what is the review process? Who signs the returns?

  • How long, approximately, will it take to finish my taxes?

  • What's your privacy policy? Will you share my tax information with any third-parties?

  • Do you believe I'm paying too much, too little, or just the right amount of tax?

Tax accountants come from a wide variety of backgrounds, and have different attitudes about the US tax system. The idea is that you should find an experienced, competent tax account who specializes in the areas you need help with, and someone who believes in helping you to minimize your taxes and Get your Tax Refunds at a faster rates.

After your interview, you'll want to perform a quick background check. Contact your state's board of accountancy to check the status of a CPA's license, or to find out if any disciplinary action taken against the CPA.