Income Tax Preparation Software

Paying taxes is something that everybody must do and most people fear. We look at that April 15th deadline like it was the end of the world and usually try to avoid it at all costs. I am here to tell you that with all the online income tax preparation software packages out there, you need not fear the IRS any longer. All you need to do is get your stuff together then go to the program of your choice and you will be walked through the process of filing your tax return.

Here is a basic list of things you will need to do your taxes. This is the same whether you are doing them yourself, at the local tax professional, or with online income tax preparation software. If you have all of these documents handy, you will zip right through your tax return.

The first thing you need is your income documents. You will need your W-2 from your employer as well as statements for any interest you received from your bank, earnings from investments, and your state tax refund from last year.

The second thing you need is your deductible expenses. If you are paying a mortgage, you will get a statement from your bank telling how much interest you paid. If you donated to charity, your church for example, you should get a statement from them documenting how much you donated. If you are paying off a student loan which has interest on it, again, you should get a statement. You may also have other deductions that you may not have a receipt for. One example I can think of is Good Will donations which are deductible, but you won't get a statement from them. You should have gotten a receipt of sorts when you donated, but you will have to estimate the value of what you donated.

The last information you will need is information on your dependants. You will have to enter social security numbers and information for your spouse and kids in order to claim them and get the appropriate deductions. If you choose a good online tax preparation site, you will be able create an account that will save your information for next year so you won't have to re-enter this information.

Once you have all of these documents, just go to the online income tax preparation software program you choose and start entering the information. The program you choose should walk you through filling out the information and e-file for you so you won't even have to mail in your return. Easy as 1,2 3 as long as you have all your documents together.

For the record, I am not giving specific tax advice and recommend using software or a tax professional to make sure you are following all the applicable rules. This will help you stay out of trouble with the IRS.