The IRS has extended your due date to July 15th, 2020 but don’t wait till last minute.
These tax software reviews are based on my ~20 years of filing tax returns online while running my businesses and as an employee. Also do my sister’s tax returns who’s health issues kept her below the poverty level. Have encountered several challenging situations was able to solve and file using different programs. Don’t overpay to get them done. Most people can do this easily without the upgrades offered to you.
Stimulus Checks, for people who don’t file taxes: IRS.GOV website front page there is a box “Non-Fillers: Enter Payment Here”. Simply enter your bank’s routing number and account number. Both are on your checks, or you can look them up online. Don’t pay anyone to send in this information.
If your Adjusted Gross Income (AGI) is under $69,000 and you use the standard deduction, filing your federal taxes are free. Normally a fee to do state taxes. AGI is your gross income less 401K/HSA deductions plus interest & investment income. If your income is over $69,000 you can shop several programs below to save. With higher standard deductions of $12,200 for single and $24,400 for married couples, approximately 90% of filers only need standard 1040A.
On the IRS.GOV home page click the box “Do Your Taxes for Free”. Click the box “Choose a Free File Online Product”. Then you can read which programs you qualify for. IRS.GOV provides “Lookup Tool” to prequalify you showing which programs work for you.
The terminology of taxes is confusing. The IRS provides Publication 17 “Your Federal Income Tax (for Individuals)”. It is free and explains plain language with more detail what you need to do in each tax section and box no. if you are confused. This was my bible from the days of preparing my taxes on paper. Between Publication 17 and Google have figured out several complicated situations correctly.
FreeTaxUSA.com - did my sister’s taxes in about half hour. This year she needed to cash in a savings bond and required filing Schedule B Interest form. FreeTaxUSA has simple navigation between sections and help explanations were short and easy to read. Comfortable to use. Uploading last year’s PDF form failed, but no issue entering data. If you have any experience with a 1040A provides basic support State return costs $14.99.
TaxSlayer.com - have not used yet but gets great reviews. $0 Simple tax return including state tax return. If you don’t qualify starts at $17 plus additional for state return. Premium is $37 and Self Employed is $47. Will work for most people who are comfortable filling out forms with basic support.
TaxACT.com - used for my sister’s return until this year. The fee they wanted for a Schedule B Interest form drove me to research FreeTaxUSA and TaxSlayer. Good program for those who are comfortable filling out forms with basic support.
CreditKarma.com - has expanded into tax preparation. All basic federal and state returns are free. Has a new entrant only a few reviews, but a good choice if you made over $69,000.
H&R Block (hrblock.com) Online & Phone App - On of the largest nationwide tax preparer organizations. Their training is the standard CPAs often take annually to know updates. Have not used myself, but Dad and Mom worked for H&R Block after retiring. Reviews are good too. Online provides Free, Deluxe, Premium and Self Employed levels that are higher priced. If your situation is more complicated may well be worth the money.
TurboTax.com Online & Phone App - been using for almost 20 years now and is my favorite. Software suggests deductions you may have missed. Excellent online and community support if you have a questions. Makes filing painless. If you have business, investments, side hustles and itemize worth the money. However the upsell offers are Annoying! Why do I have to answer the same question multiple times? Do take advantage of any discount from credit union, Costco or filing early.
CPA/Tax Preparers - If you have multiple businesses, investments or rental properties well worth the investment for advice, professional contacts and guidance. Recommend my former CPA in CA any day. Wish had those investments.
Enjoy using online tax software since they are updated daily, very accurate, and catches my errors and typos. E-filing and direct deposit is the way to go. For most of us this is a simple process of less than 2 hours. Start with all your forms, because hunting for forms just make data entry and tax filing seem to go on forever.
No comments:
Post a Comment