To buy or not to buy: Tax Preparation Software.
There’s a lot of tax preparation software in today’s market. But why use one at all when you can do it with a simple pen and paper. Here’s a quick rundown of the pros and cons of using tax preparation software.
Pros: Data entry has been made easy for users since most tax preparation software comes in four levels of guidance covering simple 1040 EZ form returns to the more complex. The needed information is asked and automatically filled out on the appropriate schedules and supplemental forms.
Tax preparation can be stored on your computer as well as other storage media which enables your tax preparation to be filed through the IRS E-file for free or at less cost by a specific tax preparation software package and registered e-file provider. This can also give you a refund that only takes 8 days. You can then save multiple copies which is handy in case of a disaster.
Printed out files are more neat to look at and prevents it from becoming illegible,making it hard to understand.
The cost of Tax preparation software is part of the Job Expenses and Miscellaneous expenses. If 2% of your Adjusted Gross Income is less than the number under Job Expenses and Miscellaneous expenses, it can be deducted but just the same,you should consult an accredited Tax Preparer or CPA.
There's a lot more of savings you would gain when using a tax preparation software rather than hiring an Taxation professional.
Advantages: It's too much to use software for filing simple returns. The more complex returns have to be checked still by a CPA or accredited Tax Preparer if current tax codes that apply to you have changed since the last time you filed your taxes.
Features such as importing investments that are bundled with the program can be a hassle to learn and are sometimes not up to date with current tax codes regarding differences in investments.
The same as Pro #4, but if 2% of your Adjusted Gross Income is GREATER than the number under Job Expenses and Miscellaneous expenses, it is NOT deductible but to make sure, you should still consult an accredited Tax Preparer or CPA.
Software concerns created with the help of taxation experts are not really that recent and will only be updated with a newer version.
With these in mind, you can decide on your own if using tax preparation software helps or hinders you.
A Final Word
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