It's that dreaded time of year again. No, I don't mean the three months you have between the realization about what all that winter comfort food did to your waistline and bikini season. The tax-return deadline is right around the corner.
If you go to an accountant, even a simple return will cost you around $200 for your federal and state.* If you're a freelancer or have complex tax issues, hiring a professional is probably the best course of action; he or she will save you tons of cash in the long run. But if you know that you have no real deductions, you might consider DIY tax preparation with these six tools.
Note that most free tools ask you to pay for your state tax preparation. The simple reason why is that not all people are required to file state taxes (for example, in Texas, no one pays state taxes, though there are other taxes that are paid throughout the year). You should also know that the free tools all have the same basic thresholds for free filing... the same ones that are on the IRS's free filing option.
In general, you qualify to file free if you're an individual or family who had a combined income of $58,000 or less in 2013. It's the other bells and whistles, which the IRS's option doesn't have, that may be different from company to company. Some companies may even have free filing options for those who make more.
Believe it or not, the IRS actually sponsors free tax help for low- to moderate-income families. If you qualify, volunteer tax counselors can help you file your own taxes and provide free basic income tax help. They won't be able to help you with state taxes, but they can offer you e-filing options, which help you get your refund (if you have one coming) faster.
MyFreeTaxes.com has handy checklists to help you gather everything up front, and it saves your work in case you do need a break. The software has error checkers and calculators to help you reduce the chances of making an error. This one does allow you to file your state taxes (even multiple state tax returns) for free.
TaxACT will let you e-file simple and complex tax returns free, regardless of your age or income level. It guarantees 100 percent accuracy and even gives free tax help and audit support. Filing your state taxes does cost $15 per state. It also has inexpensive deluxe options that include extra calculators and reports, bonus support options and the maximization of certain types of deductions.
Probably the most-recognizable online tax filing service, TurboTax will more than likely be more expensive for those who need to do state taxes. It's about double that of TaxACT. But it does have a really simple question-and-answer interface and live chat tax advice. There are additional packages available for those who need them, which range up to $100 for federal returns. These more-advanced deduction and donation calculators are for those with more complicated tax returns.
HRB doesn't just offer in-person preparation. You can use its free e-filing tool and get automated help and credit checks. You only get one session of live help via chat or e-mail, though. You'll pay about $28 for your state preparation.
This option is about the same in terms of price as TaxACT ($13), but you have to be under the age of 52 and have a maximum gross adjusted income of $57,000 or less (which is shy of the IRS's offering). The eSmart Tax option does support itemized deductions for those of you who have them, but it will cost you an extra $20. If you don't have itemized deductions, it has free informational importing, but it's only available in certain states.
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