There are ways to cut down on your tax fees this year and save some of your hard-earned cash for more enjoyable things. I am going to share how to save you money on this year’s income tax costs so that you can enjoy some money.
Income tax fees preparation fees are expensive and should be limited, but sadly those people at the income tax offices have to make a living too. However, I do not need to pay the weekly salary of that income tax employee personally, as I felt I did this year.
There are several online sites that will help you file your income taxes, and like the software titles they will walk, you right through the complicated forms. I often do my income tax on line through turbo tax’s web site, and I did the same this year to an extent. You can file your income tax right online, and you can add in state income tax forms as well. You just have to complete your own local tax forms, which are easy with the calculations already on your federal and state income tax forms.
Had I did it this way I would have spend less then $70.00 on my income taxes as I worked in one state while living in another, thereby having to prepare two state income tax returns but one state and a federal return can be purchased for less then $40.00.
I also run a small business out of my home and I thought I needed a professional to complete the self-employment tax and schedule c. All of the situations the online software could have done for much cheaper then I paid an income tax professional.
Go to Wal-Mart, purchase the software, and do your own income taxes this year. Turbo tax and tax act will walk you through all the steps you need to take through the maze of income tax forms. Even if you own a small business, it is worth your time to buy and use this software to help you save money on this year’s income tax.
You can file your income taxes right through the software and save your self-time and money over going to the income tax professional. You can even create your state income tax form with the help of this software.
The software will cost you $40 to $60 depending on the location of the store.
If you feel the need to go to a tax professional, skip the rapid refund amount. Instead, have the check deposited into a checking or savings account, and save your self the 200 to 300 dollar loan payment.
I was denied the rapid refund loan because I did not get it last year, but I was charged $29.95 simply for trying to get this rapid refund. Sorry but that money could have been better spent elsewhere.
I went to the tax professionals locally because of being self employed, paying self-employment tax, filing two different state income tax returns, and well it was daunting to say the least.
Filing income taxes, this year was easy, and for once, it was mine to do as I pleased but it came with a $339 fee attached. The sad part of this $339 fee is that had the rapid refund loan been accepted it would have cost me $250 more to get my taxes done.
I could have continued filing it via the turbo tax web site, and paid the $70 and had it deposited into my bank account in seven to 10 days. That would have been the cheapest of the three alternatives mentioned within this article.
Instead, I paid $339 dollars to wait those seven to ten days, and had to waste even more money to go up and get the check. The money I would have saved almost equals a house payment for me; I was a fool to pay that much money for income tax preparation simply because I wanted my money NOW, not a week from filing.