What you need to know before doing your taxes online
Issue date: 2/7/10 Section: Business
(ARA) - It now takes more than 71,000 pages to cover and explain federal tax laws. So it's not surprising the vast majority of taxpayers look for help preparing and filing their tax returns. Use of online tax preparation and e-filing continues to grow at record rates. In fact, more than 32 million taxpayers e-filed their tax returns from home last year, according to the Internal Revenue Service.
"Online tax prep can take a lot of the hassle out of doing your taxes," says Gary Lundberg, product management director for CompleteTax (www.CompleteTax.com), an online income tax preparation and e-filing service. "But you want to make sure you use a program that best meets your needs."
A recent independently conducted survey of approximately 1,000 taxpayers found that the most important factors to taxpayers in getting their taxes done are:
+ Accuracy
+ Safety and security
+ Help and support
+ Affordability
+ Ease of use
+ The best refund
According to Lundberg, questions you should look to answer when evaluating online tax programs are:
Does the program automatically check for accuracy?
Data entry errors and failing to enter key information, such as Social Security numbers, are some of the most common mistakes people make in preparing their taxes. Make certain the program automatically checks for errors or oversights. The program should provide links to the problems to help you quickly correct potentially costly mistakes.
Is the site secure?
You want to use an online program that encrypts your data using recognized security standards. Only use e-file programs that have been tested and approved by the IRS. These will display the IRS e-file logo on their home page.
What are the help options?
Ideally, the program should be straightforward, allowing you to finish your tax returns on your own. But you will want comprehensive help should you run into a question you can't answer. So make sure the online tax program provides help resources on every page and offers support via e-mail or live online chat.
"Online tax prep can take a lot of the hassle out of doing your taxes," says Gary Lundberg, product management director for CompleteTax (www.CompleteTax.com), an online income tax preparation and e-filing service. "But you want to make sure you use a program that best meets your needs."
A recent independently conducted survey of approximately 1,000 taxpayers found that the most important factors to taxpayers in getting their taxes done are:
+ Accuracy
+ Safety and security
+ Help and support
+ Affordability
+ Ease of use
+ The best refund
According to Lundberg, questions you should look to answer when evaluating online tax programs are:
Does the program automatically check for accuracy?
Data entry errors and failing to enter key information, such as Social Security numbers, are some of the most common mistakes people make in preparing their taxes. Make certain the program automatically checks for errors or oversights. The program should provide links to the problems to help you quickly correct potentially costly mistakes.
Is the site secure?
You want to use an online program that encrypts your data using recognized security standards. Only use e-file programs that have been tested and approved by the IRS. These will display the IRS e-file logo on their home page.
What are the help options?
Ideally, the program should be straightforward, allowing you to finish your tax returns on your own. But you will want comprehensive help should you run into a question you can't answer. So make sure the online tax program provides help resources on every page and offers support via e-mail or live online chat.
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