If you ask adults what major event occurs on April 15th each year, they all grumble "income taxes are due". Why is it such a dreaded day? Well, nobody likes to have to pay taxes but we realize it's a part of our society so we do. What makes this date so horrible is that tax laws over the years have become so complicated that the average person needs to hire tax accountants and tax attorneys to decipher the tax rules established by local, state and federal governments. Tax preparation services as they are called can run $250 or more. Groups like H&R Block and Jackson Hewitt do millions of returns each year for Americans afraid to screw up their own returns and have the IRS come after them with an audit. Sounds scary and it can be if the government has to get involved in your finances. So we pay professional accountants and tax preparation specialist money to keep the IRS away. Unfortunately the tax laws are not getting simpler, only more complex which means we will all need tax help to solve our tax problems.
One good site, believe it or not, is the IRS.Gov site with tax forms, tax deduction tables, income tax brackets, and general information on filing tax returns. If you are lucky at the end of the yearly process, you get a tax refund which means the government pays you back money you overpaid them to begin with. It's a strange process and no doubt confusing to many of us. We plug in a bunch of #'s and our tax accountant or tax software spits out a # that correlates to our tax obligation for that year. We suggest finding a local tax accountant if you can (by word of mouth or the yellow pages) and stay away from the less personal H&R Block or Jackson Hewitt who rush people through their doors and make lots of money. There is a good website called CPAFinder.com which may help in your search.
Tax Return Help and Answers to Problems:
Unless your tax return is done on the 1040EZ form, you will probably run across tax problems and finding answers or getting tax help can be a hassle. Most tax services charge for even the simplest answers so we recommend using the internet to find answers to the easy questions you may have at sites like TaxHelpOnline.com or the IRS site listed above. It's important to find a local CPA or tax accountant or tax attorney who you feel is fair and have them do your tax returns each year. Many tax preparation services are reputable, but some charge much more than you need to pay. Not to say they take advantage of you, but each accountant looks at taxes and forms a little different and you need to find one that sees things from your perspective.
Tax Software - Turbo Tax - Tax Cut:
One solution to the whole tax mess come April is a good tax software program like Turbo Tax, Tax Cut, or Tax Act. All are pretty good with generic tax returns and they can even file your returns electronically which the IRS likes. Each year you need to download the latest updates to keep the software up to date on tax laws and changes. As long as you are organized and have your paperwork in order, the tax software that exists today is pretty good and should be easy to follow. For those of us who are less inclined to keep receipts and records of important financial data, perhaps a CPA or tax accountant can help sift through the returns with your minimal information and get them done. Give Turbo Tax a try one year and see if you like it. The interface lets you choose state forms, federal forms, and any local tax returns you may need. There is the TurboTax Online Essentials for $9.95, Basic for $19.95 and Premier for $39.95. Go to TurboTax.com to find out which one is best for you and download it for a free trial.
Where can I find IRS Tax Forms?
We've all been there come April each year, we ask ourselves "what the heck is form 1099-B?" and where do I find it. The IRS runs a great website dedicated to tax forms and what they are used for at IRS.Gov. You get an explanation of each form and you can print them out online if you need them. Just make sure you are well organized when you visit your tax preparation accountant each year so that nobody has to waste time weeding through paperwork to find the important documents.
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