Tax

Many of us became used to paying an accountant or tax preparer when it came that time of year. It was so much easier to pay someone than to have to sit down for hours and figure out all of the many forms that the IRS places before us. Doing it ourselves also meant keeping up with the tax laws that changed every year, but things have become easier in the 21st century.

Even if you are a small business owner, you can save money on tax preparation using one of the programs on the market such as Tax Cut or Turbo Tax. Some people have concerns because they have business expenses and income to report, but those who have used these programs can attest to the fact that the programs ask the same questions that an account or tax preparer asks. This gives even the small business owner an opportunity to save some money when preparing taxes by taking advantage of tax preparation software that is made specifically for the small business owner.

For the individual taxpayer, there are several options. Certainly you can choose to pay someone to do everything for you, and even if you have various deductions and investments, you can learn how to do it yourself with tax preparation software. For individuals, the programs average under $50, and when you compare that to what you pay someone to do it for you, that's a huge savings. If you have a simple tax form, you can get assistance from the IRS for filing.

One option of which many people are unaware is that of the free e-Filing through the IRS website. If your adjusted gross income is under $52,000 a year, you qualify for free E-filing. There are several different tax preparation programs you can use including Tax Cut, Turbo Tax, and Tax Act. Some allow higher income levels than others such as Turbo Tax, which allows only $28,500 while most of the other programs allow the $52,000. You can also file your state return at the same time, though not all of the states have contracted for free e-Filing.

With the ease and minimal expense of tax preparation programs, it is senseless to pay someone hundreds of dollars to do what you can do yourself. If you think you may be audited, you want someone who will back you up in court, but for the average person, that is not an issue.