Searching for the best cheap online tax filing software?
Tax time is a necessary evil. Between the stacks of paperwork, tight deadlines and endless confusing forms, there are many reasons people groan when the first of April rolls around.
But don’t lose hope just yet…
There’s good news for cash-strapped taxpayers. You no longer need to hire a costly professional accountant to manage your taxes. Affordable online tax filing software has given everyday people the ability to file quickly, accurately and without spending a small fortune.
And what’s even better?
It’s easier than you might think.
What You’ll Learn:
- Why affordable tax software makes sense
- Key features to look for
- How to choose the right software for you
- Tips for getting the best results
Why Affordable Tax Software Makes Sense
Let’s be real…
Paying a professional accountant to handle your tax filing is expensive. A professional filing a basic return can cost anywhere from $200 to $500 or more. It adds up quick when you have to pay every year.
Affordable online tax filing software gives you the same service for a fraction of the price. Options range from under $50 up to a little more for professional packages. You can even get free filing if you qualify.
The thing that’s really powerful about this:
Tax software takes you through every step of the process. It asks basic questions about your income, deductions, and credits. Then it does all the calculations for you.
Tax degree required? No way.
When looking for the least expensive online tax filing option, consider what you need versus what you don’t. Not every taxpayer needs advanced features. If you have a simple return, a basic affordable online tax filing software package will be sufficient.
Pretty sweet, right?
The Rise Of Digital Tax Filing
The digital tax filing revolution has been huge.
According to IBISWorld, self-prepared tax returns increased from 50 million in 2015 to over 66 million by 2024. That’s a huge uptick over a nine-year period.
But why the massive jump?
The majority of people realized they could do their own taxes. It no longer made sense to pay someone else when you could do it yourself. The software has evolved to be smarter, more accurate, and super user friendly.
Governments have also pushed taxpayers to use e-filing options. In fact, over 78% of U.S. taxpayers use some form of digital to prepare and file their taxes. The great majority of returns are processed electronically which speeds refunds.
Key Features To Look For
Not all cheap online tax filing software is created equal.
Some services offer tons of features and support. Others are basic platforms. The key is finding the right balance for your needs.
Here are the essential features you should look for:
- Step-by-step guidance: The software should walk you through each section clearly
- Error checking: It should have built-in checks to find errors before you file
- Import capabilities: The software should automatically import W-2s and other forms
- Deduction finder: Look for credits and deductions the software can help you find
- E-filing included: It should be able to submit directly to the IRS with no additional fees
Certain platforms also offer live support from a tax professional. That can be handy if you get stuck or have questions…
But it usually costs extra.
How To Choose The Right Software For You
The best cheap online tax filing software for you depends entirely on your tax situation. A freelancer is going to have a completely different tax situation than someone with a simple W-2.
Ask yourself the following questions:
Do you have self-employment income? You’ll need software that understands Schedule C forms and business deductions.
Do you own property or have investments? Look for platforms that handle Schedule D and property tax deductions.
Is your return straightforward? A basic free version might be all you need.
Match the software to your complexity level.
Don’t pay for features you won’t use. But don’t also skimp if you have a complicated tax return. The wrong software can cost you money in lost deductions.
Getting The Best Results From Your Software
Cheap online tax filing software is only as good as the information you feed it.
Here are some tips to maximize your results:
Gather all your documents first. This means W-2s, 1099s, receipts for deductions and any other paperwork you may have. Have it all ready and the process goes much smoother.
Take your time with each question. The software asks specific questions for a reason. Trying to rush through the process will lead to errors or missed opportunities.
Double-check before you submit. Most software has a review feature before sending it off to the IRS. Use it. A small error can delay your refund or even trigger an audit.
Save records of everything. Keep a copy of your completed return and all supporting documents. If questions come up later you’ll be glad you did.
The Security Factor
Afraid to give your personal information over to some online software?
It’s a fair concern. But good, well-respected affordable online tax filing software has security that is on par with banks. The big platforms use top-notch security experts. There’s good chance your information is safer with them than in a filing cabinet at home.
Look for these security features:
- Multi-factor authentication
- Encrypted data transfer
- Secure storage of your data
- Clear privacy policies
The major players in the field invest heavily in keeping your information safe. On top of that, many have guarantees in place if there’s a breach.
Common Mistakes To Avoid
Even with great software, mistakes can be made.
Here are the most common to keep an eye out for:
Forgetting income sources. Every W-2 and 1099 counts. The IRS knows they were sent to you, so report them.
Missing deduction opportunities. The software can only find deductions you tell it about. Charitable donations, medical expenses, home office costs and more can add up. Don’t forget to report them.
Filing too quickly. Rushing to beat the deadline often means errors. Start early and give yourself time to review everything.
Not updating personal information. Marriage, kids, new addresses or other life changes can impact your return. Ensure your info is up to date.
When To Consider Professional Help
Cheap online tax filing software works great for most taxpayers.
But there are some complex situations that are genuinely difficult to manage. If you own a business with employees, receive foreign income, have major life changes (divorce, inheritance)…
It might be time to bring in a professional.
The good news is you can still use software for the basic prep. Then have a tax pro review the work. This hybrid approach will save you money while ensuring your return is correct.
Wrapping Things Up
Cheap online tax filing software has been a game-changer for millions of taxpayers. It’s way cheaper than hiring a pro. It’s easier than sifting through piles of paper and guessing on forms. And when used correctly, it’s shockingly accurate.
To recap quickly:
- Choose software that matches your tax complexity
- Gather all documents before starting
- Take your time, double check and make use of built-in security
- Know when to seek professional help
The days of hating tax time are behind you. With the right cheap online tax filing software, you can file with confidence, in record time and without draining your wallet.
Get started on your search today. Your bank account will thank you come April.