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Tax time online

By Mark Reed

"In this world nothing can be said to be certain, except death and taxes." --Benjamin Franklin

Man and calculatorThe April 15th tax deadline is looming. You sit with pencil and calculator ready, complicated forms and files spread out across your desk, checking and double-checking figures, matching up lines and boxes and amounts--sometimes the only thing that really seems certain is losing an entire weekend. It’s little wonder that April is said to be the cruelest month.

It doesn’t have to be this way. Uncle Sam should tax your income, not your sanity. Luckily, help is right in front of you. Your computer won’t get you out of paying your taxes, but it can make the whole process much simpler and easier.

Uncle Sam gets a facelift with electronic filing
Anyone with a computer, an Internet connection, and some form of tax preparation software can file a tax return online with the Internal Revenue Service (IRS). According to the IRS, online filing promises faster processing, prompter refunds, lower cost, and greater accuracy than traditional paper filing. Although the IRS does not charge a fee of its own, you must submit your information through an online filing company or tax software program, and there is usually small fee built in for transmission.

There are numerous resources and tax preparation programs on the Web that will help you calculate your taxes and file your return electronically with the IRS. Tax software programs will ask you the same questions a tax preparation specialist would ask, then make the necessary calculations. The program will verify your data, maximize your deductions, and alert you to any questionable entries.

Save with Microsoft Tax Saver
One of the leading tax preparation tools is Microsoft TaxSaver. TaxSaver contains a wealth of resources including a full set of IRS forms, tax law information, expert advice and tips for saving money, sophisticated tax-planning tools, and simple step-by-step guidance—all to make tax preparation and filing as painless and accurate as possible.

TaxSaver includes an Answer Wizard that gives easy-to-understand responses to your tax questions, a Tax Glossary that provides quick definitions of tax terms and concepts, and you can research tax subjects further in the IRS instructions and publications included in TaxSaver. When you have completed and reviewed your tax return, TaxSaver enables you to file your tax return electronically with the IRS directly from your computer.

It’s tax time at Money Central
If you’d prefer to prepare your taxes without purchasing software, Microsoft Money Central is a great free resource. You’ll find all of the federal tax forms you’ll need, useful tax tips, up-to-date tax news and information from leading financial providers, and current listings of tax law changes. Use the quick reference to answer your tax questions and find tools and articles on deductions, estate planning, self-employment or property taxes--just about any tax scenario imaginable.

Other helpful features include the tax estimator, a tool that will give you an estimate of what your taxes will be and help you determine the best way to file. Insight is a complete tax workshop full of tax planning tips, ways to find deductions and reduce your taxes, related tools and articles, and helpful Web sites. When you’re ready to file, you’ll find a link to prepare and file your taxes online through H&R Block.

With the time and money--not to mention headaches--you’ll save by filing your taxes online, you’ll have plenty of extra time to decide how to spend your return, or to save up to pay what you owe. In the end, the process will be much less taxing, and you’ll have many happy returns.

 

Mark Reed

Mark Reed hopes his tax dollars are being put to good use.

Need help locating a tax program?

Download the free trial of TaxSaver Federal. It gives you everything you need to prepare your taxes completely and accurately. When you're ready to file online, you can convert your trial version to a fully functional product for only US$4.95.

In addition, the IRS Web site has lots of information, including a list of private sector partners who participate in the IRS e-file program and offer free and low-cost electronic filing options.

You’ll find a list of companies that make tax software to enable you prepare your taxes, as well as a list of companies that offer an online filing packages, complete with prices and Web addresses.