What The Tax Software Companies Don't Want You To Know
By Stephanie Gallagher, Fri Dec 9th
Haven’t done your taxes yet? No problem. Now there is a new wayyou can use top tax software programs, like TurboTax and H&RBlock, to get your taxes done quickly and easily. And the bestpart is it won’t cost you a thing.
The secret is an IRS program called Free File, that allows youto prepare and file your federal tax return electronically,using these and dozens of other popular tax software programs,for free!
Free File has been around for a few years, but it used to havevery stringent income requirements (i.e., only taxpayers whoseincomes were below a certain level could use it). This year isthe first time the service is being opened up to 99% oftaxpayers.
Important: You must go through the IRS official web site inorder to get this deal. Go to http://www.irs.gov and click onthe link at the top of the home page that says Free File. (Note:It’s not on the navigation bar. It’s on the home page itself.)
Next, you’ll want to click the gray button at the bottom of thepage that says, “Start Now.” At this point, you’ll have theoption of browsing all of the services offered or choosing touse the “Guide Me to a Service” wizard to help you select one.The wizard will ask you a few basic questions about your age andincome and then come back with a list of companies whose freeproducts meet your needs.
Why is the IRS doing this? In a nutshell, to save money. It’scheaper, faster and easier for them to process returnselectronically.
Why should you do it? Because it’s cheaper and easier to file,and you can get your refund faster.
Why are the big tax companies offering this deal? They’retrying to get you to upgrade to one of their deluxe products,which offer things like tax planning advice, the ability toimport data from software you used last year, etc.
Also, state tax programs are not included in this deal. So thecompanies probably figure that if you use their free federalprogram you’ll end up buying their state one.
Remember: You must go through the IRS official web site inorder to get this deal. If you go to the tax companies’ sites,you will not get this offer. In fact, some of these companiesnot only charge you to do your return online, but then they’llalso hit you with a fee once you try to file electronically. Soyou’ll pay twice if you don’t go through the IRS web site.
Happy tax preparing!
About the author:Stephanie Gallagher reveals her closely-guarded shopping secretsin her ezine, The Shopping Mom’s Weekly Tip. Get the eCookbooksRecipe Sampler Cookbook as a special gift when you subscribe.Send a blank email to: theshoppingmom@aweber.com
