Advantages And Disadvantages Of Using Tax Software

Advantages And Disadvantages Of Using Tax Software

Advantages And Disadvantages Of Using Tax Software

Author: Gray Rollins

Each year millions of Americans have their taxes prepared by a professional tax preparer. Having tax returned professionally prepared reduces the likelihood of errors being reported on a tax return; however, professional tax preparation is often expensive. For this reason there are a large number of individuals who are making the decision to file their own federal and state tax returns. While it is possible to file tax returns the traditional way with paper tax forms there are now many taxpayers who are relying on tax preparation software to quickly and accurately prepare and file their taxes. Tax software programs have increased in popularity over the past few years; however, like many other software programs tax software programs have advantages and disadvantages.

Before learning about the different advantages and disadvantages of tax software it is important that taxpayers learn the different types of software programs that are available. There are a number of popular tax software programs that include Turbo Tax, TaxCut, TaxAct, and more. Each of these tax software programs are likely to offer multiple tax software versions. Many tax software programs come in a standard version, a deluxe version, or a premium version. Each brand of a tax software program may include different features under each tax version; however, many of the tax software programs operate in the same way. Standard or basic versions are likely to only include federal income tax return forms. Deluxe and premium software versions are likely to include both federal and state income tax forms. Premium tax software versions are likely to include additional help in finding tax credits and deductions.

One of the main advantages of using a tax software program is that they are fairly easy and quick to use. Tax software programs are usually step-by-step; therefore, many individuals can complete a tax return faster than on traditional paper and in less than half of time. Many taxpayers who use tax software prefer the software versions that offer both state and federal tax forms. The majority of software programs will transfer the information from a federal return over to a state tax return. This not only saves time, but it also guarantees that the information found on a state tax return is accurate.

Another advantage to using a tax preparation software program is that is costs less than hiring the services of a tax professional. Tax preparation fees generally depend on where the taxes are being prepared at and how many tax forms need to be filled out and how complicated they are. The majority of individuals end up paying one hundred dollars or more to have their taxes professional prepared. The price of a tax preparation software program can range from free all the way up to sixty dollars or more.

In the past few years e-filing has become popular. E-filing allows a tax return to be received and processed quicker which often results in taxpayers getting their tax refunds sooner. Even though e-filing has dramatically increased in popularity there are still a number of individuals who do not feel comfortable e-fling their taxes. These taxpayers are often worried about their personal information being transmitted over the internet. All tax software programs give users the options of e-filing their federal and state tax forms or printing them out.

While e-filing tax returns may be convenient there are many tax software programs that charge an additional e-filing fee. Taxpayers are encouraged to fully read the box of a tax software program or read the description of the software program online. It is not uncommon for many taxpayers to not realize that they will be charged an additional fee for e-filing. There are some tax preparation software programs that only mention the e-filing fee in the fine print of their product description. Even with the additional fee it is still likely that the majority of tax software programs are cheaper than having a tax return professionally filed. In addition to e-filing fees, taxpayers are encouraged to be on the lookout for any other hidden fees because there are likely to be some with many tax software programs.

With many tax software programs guaranteeing their work it is evident that tax software programs are easy to use and accurate. With mathematical checks and easy print offs for personal records it is obvious that there are many advantages to using a tax software program. Taxpayers are encouraged to weigh the above mentioned advantages and disadvantages of tax software programs and then make an informed decision on how their tax returns should be prepared and filed.

Article Source:

About the Author:

Gray Rollins is a featured writer for the To learn more about tax software and accounting software, please visit our site.

Doing Your Taxes Online Using Free Tax Software

Doing Your Taxes Online Using Free Tax Software

Author: Low Jeremy

An income tax is a financial charge imposed on the financial income of entities like persons and corporations. In short, any legal entity who has a value can be taxed which somehow makes sense. To see it in a positive light is to view tax as a contribution to society.

You give offerings and tithings to respective churches so why not give something back to the country you pledge allegiance to. If your church promises to improve some aspects of the religious community and as well as to give a portion of the church funds to the needy then the government supposedly does the same with the taxes. Improvement in roads and infrastructures along with programs related to health and education are all funded by tax money.

Tax is a complex manner. It is something you pay for out of duty that goes back to you in some other ways. There are however various income tax systems that exist. There is the flat tax, from the name itself a flat tax is a tax that is the same amount regardless of the income of the entity in question.

A progressive income tax is a tax that progresses depending on the income so naturally the more your income the more tax you have to pay. It is also sometimes referred to as the graduated income tax system and in this system, there are brackets for different financial incomes that will serve as a guide for the entities on how much they should file as income tax payable.

As mentioned earlier, any legal entity should pay tax. A business or a company pays what you call corporate tax, corporate income tax or corporation tax. An individual pays an income tax based on the total income of that particular individual.

There are some deductions permitted but you have to check for these tax deductions with your tax specialists. Even properties or inheritance have taxes so make sure that you are aware of these things not just because you own one but most especially in cases when you are acquiring new property for yourself or for your children.

An entity who wants to be a step ahead can download or get a copy of free income preparation tax software in the internet. Get a copy of the specific software that you need so that come time of filing tax you work is in fact already half done.

Undeniably, having a reliable online income tax software can infinitely speed up and simplify the usually tedious and complicated process of tax filing preparations. However, it must be stressed that you need a reliable online income tax software and not just some run of the mill kind that will cause you more headaches than you need.

Since it has been recognized that a lot of individuals do need the aid of a third party solutions provider to help with tax filing preparations, the tax preparation industry has realized that if they provide a product, they will have a market for their services. Some unscrupulous individuals will take advantage of this fact by offering substandard online income tax software and may even lure customers by offering the service free.

It is very important to protect yourself from tax liability because this will prove to be an even larger headache than tax filing preparation in the first place. Do not easily trust online income tax software providers. Do your research and verify that these programs are certified or back by good, solid companies that have been around the business for a while with no untoward cases of fraudulence.

To help you on your search, you may check out the links below and decide which online income tax software is the best to suit your needs.

Perhaps you should check out TaxCut online to cut tax filing preparation headaches away. This online income tax software is backed by a reliable company known for being good solutions provider when it comes to tax filing preparation. The online income tax software product comes with a guarantee that their company will not desert you in the rare event of an audit if you file your taxes through them.


You may also decide to try Intuit's TurboTax online income tax software because reviews by information technology experts as well as actual customers have given this program a thumbs up. It wins the market in terms of its very user friendly interface as well as its thoroughness and dependability as a tax filing preparation product.

Whatever online income tax software you decide to choose, do not forget to do proper research. Perhaps it would be wise to try out free trial versions of products first before deciding to purchase and invest in an online income tax software. However, if you were to choose between a PC based program and an online income tax software, it would be better to use an online program sometimes because of easier installation of upgrades.

About the Author:

This content is provided by Low Jeremy.

Hot Facts About Tax Software No One Else Will Tell you About

Hot Facts About Tax Software No One Else Will Tell you About

Author: Tomas Loden

Today you can get the same advantage that a professional tax expert even if you prepare your tax yourself. Helpful, fast and easy to use income tax software is readily available from various software companies online and offline. Various tax software programs can be downloaded for free, shareware or paid software. Just do a search online for "tax software review" and you will find many sites with great info, tips and advice.

There are many different brands of tax software available. Three companies lead the pack for desktop tax software. They are TurboTax, TaxCut and TaxAct.

TurboTax is a great tax software that is thorough and easy to use, even for complex returns. Simple returns can be completed very quickly, and complex returns can be completed more quickly than in past years. This year Turbo Tax is charging for e-filing: $14.95 for Federal and $14.95 for state..

TaxCut. This tax software is considered the best tax software for those on a small budget. It does not rank as high as TurboTax but it is much cheaper and that is worthwhile to many consumers. TaxCut offers almost everything that TurboTax offers except Year-to-Year Deduction Comparisons. TaxCut is an excellent tax product at a low price. TaxCut Premium + State is just $39.95.

TaxAct. This income tax software is available online for download and on CD-Rom. The basic tax software program is free, and the deluxe and ultimate bundles are cheap. Both the basic and the deluxe tax software packages compute federal tax with the state tax forms available for an additional fee. The advantage of the tax software version is you can use the same tax software program each year as long as you update the tax software. Deluxe and state editions are available at

Read more about tax software in our free guide by the author.

Tax Software    Main Page

Copyright © 2007  All Rights Reserved.