This desire for convenience permeates into almost all aspects of our lives today. For example, most people find completing and filing their tax returns both tough and troublesome and want to find a better way to do it.
Businesses and computer programmers have fortunately noticed this desire for convenience and have come up with a solution: Online tax preparation. There are now dozens of websites that provide this service, and the great thing about them is that you don't have to download any software. Every step can be completed online, from entering all the relevant information to the actual filing of the tax forms, for both government and state.
Most people hate the tax season and feel pressured by the looming April 14 deadline, and hate having to fill in all those forms and mail them in. Online tax preparation has obviously made life a lot easier for a lot of people, and cuts down their stress level.
However, there are some key steps one should take before using any online tax preparation program. The obvious one being to make sure that the website you plan to use for your tax preparation is run by a respected company. Remember, you will have to enter both personal and financial information, so it's crucial that the website you choose to use is secure. Only use reputable companies to entrust your private and confidential information to. Make sure you have heard of both the company and their website so can be sure they are genuine. So, read the small print on their website carefully and ensure they have good Internet security to protect your information. Having done so then go ahead and use the service. You will save a lot of time, and maybe money, doing so.
It's a good idea to start off by visiting the IRS website as there can be found a list of tax preparation sites they deem to be safe to use. They also have a list of websites that provide tax preparation for free. Not all free tax preparation websites will also file your tax return for free, so a good idea to check before starting to use that website. Before getting too involved with your chosen 'free' website it would be a good idea to make sure both the tax preparation and filing are free!
1) Finalize your previous year's earnings as soon as possible.
Don't wait for the last minute to compute your previous year's earnings. Work with your accountant to get your accounts straight. How much did you earn from your businesses? What is your self employed income? Are you earning more than $100k, or less than $100k? Having the right numbers at your finger tips will make it much easier for you to file for your taxes online.
For one, you will know which form you need to use. For instance, if you earn more than $100k, you should be using the 1040 form. If you earn less than $100k, you will be using either the 1040EZ form, or the 1040A form. If you don't have the necessary information, you won't know which form to use.
The eFile system is there for your convenience. But it won't do your sums for you. That is your job. The sooner you have the numbers ready, the quicker you can complete filing for tax returns.
2) Set aside time for efiling.
The main reason why many people submit their tax returns late is because they don't make a conscious effort to set aside time for tax purposes. Make an appointment with yourself to efile. Don't set the date too close to the deadline. The deadline is 15th April, midnight. So don't choose to efile on 14th April or 13th April. Try to set the date at least 2 to 3 weeks before the deadline. That way, even when you make some mistakes, there is time for making corrections.
When efiling, block out at least a couple of hours, and choose a place where you will get the least interruption. The work place may not be an ideal place to efile because you tend to get interrupted quite often by colleagues, phone calls, etc. Do it on a late evening, when all the kids are out or asleep so that you can concentrate on the efiling.
3) Have all the necessary information ready.
Make sure that you have all your financial reports with you as you efile. You will be referring to these reports very often to try and figure out which number to use. If possible, let your accountant know that you are efiling, and that you may need some help. Have your accountant on stand by.
The efiling process can take just a couple of hours, or it could take days. If you prepare well for the filing, you will save yourself a lot of time.
Both Peter Blake & Gen Wright are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Peter Blake has sinced written about articles on various topics from Stress Management, After Divorce and tax. Peter Blake is an Englishman currently based in London, and writes on family and home issues. Professional help can be got by going to this website: