Online Tax Services
Some taxpayers find themselves intimidated by the process of e-filing, since the entire responsibility of filling out information and calculating figures is based entirely on them. According to the Wall Street Journal, an astounding 80 percent of individual returns were e-filed in 2012. Whether you're new to online tax services or want to get the most out of your next e-file, these three tips can help you prepare for April 15th.
1. Take precautions
Tax identity theft has skyrocketed from 51,700 in 2008 to 1.1 million in 2011, according to the Treasury Inspector General for Tax Administration. When filing taxes online, make sure your service provider offers protection from identity theft, and avoid pop-up ads that ask for your personal information.
2. Get your bases covered
There's nothing worse than filling out your entire federal return only to find that your service provider doesn't support filing for state returns. For example, at e-file-tax-returns.org, filers are charged between $19.95 and $29.95 to prepare and file state returns, but some states' forms aren't even on the list. Review the state tax filing services in particular when analyzing different service providers.
3. Use technology
E-filing isn't the only form of technology you can use when you do taxes online. The app ItsDeductible offers accurate pricing of your charitable donations, with convenient organizing folders to keep better records. The app works with any online tax-filing service. Shoeboxed is another useful app that keeps digital records of all your receipts, so you don't have to resort to the old shoebox method.
If you're not an expert on filing federal taxes online, our online tax pros can provide personal advice and services when the technology falls short. If a trained professional isn't helping you every step of the way, taxpayers are responsible to ensure their taxes are filed safely and accurately. At H&R Block, we offer in-person and online tax services, so you can choose what works best for you.