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Doing your tax return online can't be free!May 31 '01 Write an essay on this topic.The Bottom Line Taxpayers should expect to pay to get their return to the IRS online. Returns will be more accurate and good companies will offer support for free. Taxpayers don't seem to mind paying a few bucks for e-filing as long as the service is free, but that's exactly what the IRS wants preparers to offer for free. Online tax preparation companies that offer e-filing are certainly put in a position when trying to determine what to charge their customers. The IRS wants the companies to offer e-filing for free but paying a small e-file fee really doesn't seem to bother individual taxpayers. What bugs taxpayers most is paying for the service of having the tax return prepared for them. After all many of them have already done their own return and just want to e-file it for a faster refund. So how are the online companies supposed to make money? They want to please the IRS in order to be listed on their web site, but they also want to please the taxpayer so the taxpayer will use their service. At the same time the company has to earn some amount of money in order to stay in business. The way some companies have worked around this is to offer the preparation of a tax return at a low cost and e-file for free. Or they offer a very low cost to the preparation of the return and a higher cost to e-file the return to the IRS. Some services have gone so far as to offer the entire return and e-file for free. But many reports claim that those companies have poor products and even poorer customer support. The bottom line here is you can't expect to go online and prepare your tax return for free. There is going to be a cost associated with it. What you need to determine is the total price you are willing to pay to get your return to the IRS. it shouldn't really matter how much of the cost is associated with the preparation of the return or how much of the cost is associated with the return being e-filed. The actual amount that matters is your total, out of pocket expense to get your return in on time - and accurately! One of the main benefits of inputting your information into an online program is that every single line amount is going to be checked by the company's computers. Tax laws change often and a deduction you took last year may not be something you qualify for this year. On the same token there could be a deduction or benefit you have been missing out on for years because you never knew you qualified - and these online programs are going to pick it up for you. Two of the most common credit errors on a tax return are the EIC (Earned Income Credit) and the Education Credits. Both credits have strict guidelines that often leave taxpayers confused about what amounts, if any, they actually qualify for. The Education Credits phase out when you reach a certain income level. The Earned Income Credit actually has to be figured twice, once from your 1040 line 22 amount and then from your 1040 line 34 amount. Taxpayers only qualify for the lesser of those two amounts. Overall taxpayers need to expect to pay some amount of money to get their return to the IRS online. it may not be free but it is accurate and if it's a good company they will be there to help you out every step of the way - for free.  |
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