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Frugal Benefits of Filing Your Taxes Online

Posted 10:00AM 01/25/13 Savings Experiment |
Savings Experiment: Filing Your Taxes Online

Do you file your taxes online?

Did you find our video on online taxes helpful?

It's tax season, and chances are you're already thinking about how you will file this year. Hiring an accountant is one option, but Andrew Schrage, co-owner of MoneyCrashers.com, says you can save big by filing your taxes online by yourself.

In writing reviews of different tax programs, Schrage realized that he was missing out on "huge benefits" by hiring a CPA. Now that he files online, he says he's discovered new insights into his personal income and taxes as a whole.

"Many people are intimidated by the idea of filing their taxes online without an accountant, but these online programs have built-in guides, built-in Q&As, and they also have user forums to help you and hold your hand all the way through to the end," he explains.

These programs often offer access to tax experts, too, so you know you're getting professional advice. Personally, Schrage uses Turbotax, which he says has a great interface, as well as built-in business products to help him file taxes for his company in one shot.

The cost of tax software can range from free to $100. In order to find the best program for you, compare what's out there and read user reviews, Schrage suggests. It's important to find the one that works best for your financial situation.

Turbo TaxOnce you find one that you like, you will start seeing benefits over the years. Many programs carry over information from the previous year, which will save you time on your future returns. These are just a few of the benefits that online filing provides.

In Schrage's case, filing on his own has saved him $500-$600 per year, and taught him information about his income, the deductions he can take and how to reduce the chances of being audited. In the end, filing online has helped him to save money and gain valuable knowledge, which you can easily do, too.

For more tax advice, tax program reviews, filing tips and financial strategies, visit MoneyCrashers.com.

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meansph

Filing your taxes on line puts your financial data on the internet and wants it is on the internet it is always on the internet. I mail in my tax returns.

February 21 2013 at 11:51 PM Report abuse rate up rate down Reply
lmgi001

People who do not understand taxes should not "Go it Alone". You don't cut your own hair. Don't do your own taxes.

February 21 2013 at 3:19 PM Report abuse rate up rate down Reply
arenadood

We use Turbo Tax and file online, if a refund is coming We use the direct deposit. It is all quick and easy and have been doing so for many years. Not a single problem in all that time.

February 21 2013 at 10:24 AM Report abuse rate up rate down Reply
bilhee

THe one thing that filing taxes ion-line is that IT IS NOT EASY..YOu have to do the same amount of work to organize your return. In addition, Turbo Tax splits stuff like medical deductions an charitable deductions in strange ways. Also they try to sneak simple returns like Pa State income taxes into their program and charge an additional $19,99 or so to do it, instead of just printing out a couple of simple forms..or the turbo tax forms and mailing them in..Just be careful..They continually try to upgrade your on-line tax programs and charge you more. Despite this I've filed on-line for three or four years, but like any on-line products, consumer beware

February 21 2013 at 8:36 AM Report abuse rate up rate down Reply
moretrorun

Wrong. 1) You have to buy a computer 2) You have to subscribe to a service 3) You likely have to pay for additional software 4) Correcting your errors is not always possible without additional filing if you hit the button too early 5) IRS computers may not be available or otherwise be able to access your return 6) Yes, CPAs charge too much. But the software only does what the user tells it to do. 'Garbage in, garbage out'. Mistakes are still possible and even likely. Is that all? Costly and just as error producing. There's no status to e-filing.

February 20 2013 at 9:59 AM Report abuse rate up rate down Reply
dltanner7

I've been filing online since 1998, except for 2 years when I was battling cancer. Those two years, I paid a H&R Block and I paid 4X as much as Turbo Tax and both times ended up writing big checks to Uncle Sam. It's secure and I have never been ripped off by scammers. I've been paying bills, banking and investing online since the mid 90's and have yet to been ripped off. I figure if someone hacked into my accounts they'd feel sorry for me and give me money.

February 20 2013 at 9:39 AM Report abuse rate up rate down Reply
mrshohn

I don't have a problem with filing online, but I end up doing basic tax forms every year for people who are so intimidated by the 'simple form' that they pay rip off tax preparers $50 or more to fill out forms that take 5 minutes, if that, for those preparers to fill out. It's ridiculous. Finding an honest preparer who charges a fair price is right up there with finding an honest dentist or mechanic.. Yes, I have all three actually, but it took years to find them. And I don't do my one taxes because they are not one form easy and most IRS instructions may as well be written in Chinese.

February 20 2013 at 8:06 AM Report abuse rate up rate down Reply
1 reply to mrshohn's comment
Allie

For those of us who work for tax companies like Jackson Hewitt, we have no control over the pricing. It is computed internally and has to be high enough to pay the software developers too. Those guys hae to know computer code and tax code, so they cost a pretty penny.

February 21 2013 at 12:08 PM Report abuse rate up rate down Reply
rncine

Sure make it easier for the scam artist who have stolen your social security number to get paid faster.

February 14 2013 at 6:03 PM Report abuse rate up rate down Reply
1 reply to rncine's comment
mizzjan56

You sound just like me! I would NEVER file on-line!

February 14 2013 at 7:09 PM Report abuse rate up rate down Reply
Henry ptnm

I went to a CPA whom my father and my step-mother recommended. They had their taxes done by him. After my father and his wife moved to Maine, I stayed with this CPA until he passed away. I found another CPA and I went to school with his brother. My new CPA looked at my taxes and saw tremendous mistakes what the old CPA did. It took quite a while to straighten out the mess what the old CPA did. The old CPA didn't include the legal deductions which I only got small refunds because of it. I have been with my new CPA for over 10 years. I even recommended him to my co-workers and they even took their tax work to him. I just had my taxes done by him and for the first time E-File was used. I felt saddness my father and his wife recommended this CPA and I told my father about what he did and my father shook his head. I still prefer a CPA because they know tax laws. Filing taxes online may look easy but mistakes can happen. My old CPA was too much old school.

February 14 2013 at 5:35 PM Report abuse rate up rate down Reply
irnmk50

TaxACT upgrade did get the $11. I used the TaxACT upgrade to verify. But did not pay for it.

February 14 2013 at 10:32 AM Report abuse rate up rate down Reply

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