So, you’re almost 4 months into 2010. Perhaps you’ve switched jobs, started a new business, invested in one, bought a new house, an eco-friendly car, or any number of big life changes. Just when you thought things are starting to settle down, it hits you: Uncle Sam’s big tax payday is right around the corner! So what’s a girl to do? If you’re one of the many who still haven’t done their taxes yet, don’t fret! Here are some awesome tips and resources to help you out.
There’s a few ways to do your taxes, such as using websites online, specialized tax software for your computer, or even just going into a tax consultant or accountant. (There’s also the old fashioned pen and paper and forms method, but if you’re still reading this, then that’s probably not the route for you.)
So which to choose?
If you’ve got a simple tax situation, such as you held the same job all throughout 2010, no major life changes like marriage, new children, new house, car, or anything else similar, then tax websites or software are probably right for you. They’ll save you the money of a tax consultant or accountant, are easy to use, and a lot of them now have some form of “Audit Protection” as well, should you be one of the random chosen few selected for an audit. Whether by website or software, They’ll ask you to have your W-2 form from the workplace in front of you, ask you for the numbers or amounts in each box on it, then some follow up questions to see if there’s anything you can deduct to give you the maximum possible refund if you’re entitled to one, or if you have to pay, make that amount as small as possible. All in all the process can take anywhere from 15-45 minutes and then you’re all set, in most cases they’ll even e-file for you, then let you setup how you want your refund (check, direct deposit, etc) and you’re all set and don’t have to lift a finger ‘til 2011.
But what if your situation isn’t as simple and you’ve had some major life changes? Maybe you did some consulting and have 1099’s to file as well, or started a new business and have to do taxes for that?
Online tax prep might not be right for you, but Tax Software might be. Most tax software can even import your information from financial software like quicken, money, QuickBooks, and more, to make the process even easier. They’ll walk you through every step of your situation to make sure you’re crossing all of your T’s and dotting all your I’s.
If all else fails and you’re still a little nervous about handling your taxes, let a tax professional handle them for you. This route will typically be much more expensive, and often more time consuming, but that’s the price tag that comes with getting a professional to make sure it’s done right.
Things to keep in mind this year:
- Home ownership has some great tax perks, especially this year. Due to the Economic stimulus package, if you purchased a home in 2009 or even closed on it before tax time this year, you’re entitled to a huge tax credit. You can also deduct property taxes, mortgage interest, and more.
- Pay tuition for school for yourself or a dependant? Another great deduction.
- Was your Adjusted Gross Income lower than $57,000 last year? You’re eligible for free federal tax prep and filing.
- Didn’t earn enough to pay taxes this year? You might still be in for some cash back due to the Earned Income Tax Credit. More info at http://www.irs.gov/eitc
And don’t forget if worse comes to worse and you know you won’t have your taxes done on time before the April 15th deadline, be sure to file an extension, and then get them done!
Popular Tax Websites & Software:
H&R Block
TaxAct
TurboTax
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