(Newswire.net — January 12, 2015) —
Purchasing tax software to fit small business and personal filing needs can be a challenge. With literally dozens of tax software brands, versions, features and updates on the market for both paper and digital filings, it’s important to make the right choice for your filing needs. E-filed returns accounted for 96% of early 1040s as the IRS reported nearly a 4% increase of electronically submitted returns the first week of the 2014 filing season (more than 26 million).
In 2014, the average refund for the first week of tax filing season was reported as better than $3,300–a 4.6% increase over 2013, and early returns filed for the first week of 2014 were up 2.5% along with an 18% increase in those receiving a tax refund. Early filers will factor in added savings through the bigger discounts on tax software in January and February versus later in the season. Online resources like FatWallet.com and their savvy finance forum community can help early filers make smarter tax software choices by offering access to coupons, special seasonal discounts and cash back on tax software deals from top retailers like TaxAct, TurboTax and H&R Block.
Using tax software allows users flexibility to do their own taxes on their own time without the need for extensive tax knowledge and is considerably cost effective compared with hiring a tax firm or tax professional. Consider these tips before making a tax software purchase this year:
Personal vs. Business: Most often, personal income filings only require a standard or deluxe tax software solution. Small business filings require more specific tax software versions with forms and features that focus on single-owned LLCs, sole proprietors, consultants, contractors or other business models. Deciding this individual software need can save considerable money versus buying a complete package.
Free vs. Paid: The more complicated your tax situation, the more expensive the software can be. Free service options are available for simple personal filing situations from many online tax software entities, but they may not cover both federal and state filings and may require a filing fee. Making an upfront tax software investment can insure you’re getting all the features, and assistance, needed to file both federal and state efficiently, and correctly. Purchased software packages should include clarity of current tax laws, web access to IRS publications and it’s smart to consider software that includes a tax interview feature (best guide to quickly complete tax forms correctly).
Online vs. Desktop: The advantages of using online tax software can far out-weigh desktop versions, as tax code updates are automatic, as is back up of filings, which are encoded and very secure. The cost is often less for online and the service is immediate. Those seeking desktop software can download it or receive a physical version to put on their computer. The advantage of desktop software is that users have more control over how their records are stored and back up their files on a private storage device or server. Most software, whether online or desktop, offer excellent support. It’s always a good idea to refer to product reviews before making any purchases, if not to utilize finance resources and online communities for additional information.
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