Finding The Proper Earnings Tax Preparation Software - Know Your Tax Needs

By Author: Jen Silva
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As more and more taxpayers choose to prepare their own taxes, the choice of software becomes more and more important. There are a number of fine products from which to choose. But before you choose a program, it is best to take a few minutes and evaluate your own tax situation.

Different people lead different lifestyles, and have different tax preparation needs. Just as the IRS has a multitude of different forms and schedules, income tax preparation software contains different features. Review your past returns, and consider your tax needs, before looking for software.

Are You Experienced in Preparing your Income Taxes?

If this is the first time preparing your own taxes, you should consider using software that provides a detailed question and answer dialogue for your preparation, and a tutorial, along with tax tips in a separate pop up window.

Most of the more popular software companies provide excellent guides for the beginner. The better programs for the beginner will have an initial 'interview' or question and answer session, to be used before the return is prepared. The program will select the ...
... proper form and schedule to use when the interview session is complete.

Do you prefer to prepare your taxes online?

Most income tax preparation software companies have an online version, where your return is prepared and stored in cyberspace. With an online version, you are provided a user name and password. You can complete a portion of your return, save it, and return later by signing in at a later session.

Some do not wish to have their financial information on the web, no matter how securely the information is stored. And yes, each online provider must follow strict IRS rules for data storage.

But if you still prefer to retain your information exclusively on your desktop, each provider will have a desktop version of their software to install on your computer. The installed versions have 2 advantages. First, the desktop version is often quicker to use than the online version. With an online version, there are often a number of delays between screen pages, mostly do to security encryption. The other advantage is that most desktop versions will allow you to prepare multiple returns. For instance, a desktop version may allow you to prepare up to 5 returns for family members in the software package. The desktop version will provide you with the ability to file online.

Does the Software Provide Online Support?

This is an important feature in choosing a software program. When faced with an unfamiliar situation, online support can be an invaluable asset, and will save hours of time. The larger software companies provide access to online forums for those with questions. Often, there is a good chance that someone has the same question as you. If not, you can post a topic and receive a sufficient answer.

Are your returns complex?

Some of the software is geared towards the average tax filer, one or more W-2's, homeownership deductions, tax credits for children and common deductions. All should perform adequately in this regard. If your return is relatively simple, you may consider one of the less expensive brands with a simple user interface.

More people are becoming self employed, own home based businesses, and require additional schedules to complete. Look for a version that caters to business deductions and business tax planning. A few have deluxe version that will allow you to prepare partnership and C corporation returns. If you are new to owning your own business, find a version that also provides tax planning strategies for future reference. Though the software will not, for instance, provide recommendations of business entity formation, many will provide advice on the best method to maximize deductions.

When choosing an automobile for purchase, a buyer will consider their needs, the vehicle features, and whether certain options are needed. The idea of what type of vehicle is desired is thought out before hitting the car lots or classified. The same thoughts should go into purchasing income tax preparation software. Consider your needs before you begin to shop for software, and you will find the right program.
About Author:
The author is a contributor for the site http://800-numbers.pbxcompare.com and specialist of small business resources and options on subjects such as income tax preparation software. Please visit http://www.tax-compare.com for more information on Tax Software.