April 15 will be here before you know it, and if you haven’t made a decision on how you’ll prepare your taxes this year, here are a few tips that may push you toward a DIY approach.
Shop Around for Software
TurboTax (www.turbotax.com) is generally the most popular and trusted tax software option, but you’ll typically have to pay around $60.00 per year. It may be worth your time to shop around for some free options. Many tax prep software applications are free up to a certain income threshold, and your costs will also vary depending on the sources of your income. A person with a single W-2 form will usually pay less than a person with multiple W-2s, 1099s, investment income, and other income sources.
Take Advantage of Homeownership
If you’re reading this newsletter, there’s a good chance you’re a homeowner. Tax time is one of those events that show the benefits of homeownership, because you can get some major tax deductions. Mortgage interest, property taxes, and some home-buying costs are among the deductions you may be eligible for. Your tax preparation software should guide you through these deductions.
DIY Is Great, But So Is A Tax Professional
DIY tax preparation isn’t for everyone. Though tax software companies offer audit assistance for an extra fee, some people enjoy the peace of mind that comes with meeting a tax professional and being able to ask questions about their taxes in person.
A tax professional is particularly helpful if your taxes recently became more complicated, such as if you started a business or completed several real estate transactions.
