Why Tax Software and E-file are Easier than Ever

May 22, 2008; 01:55 AM

Tax software and electronic tax filing (e-filing) have astoundingly changed the way we do our taxes. Gone are the days of hunkering down in a pile of file folders and paper receipts, of arriving to the post office late and stressed.

According to the IRS, in 2007 a record-breaking 76.7 million individual tax filers—22.5 million filing from home—submitted their forms online. Numbering 2.5 million more than last year, these tax e-filers have effectively overshadowed the few of those still living in the Paper Age of taxes.

Tax preparation software deserves all the credit--pun intended. The Urban Institute states that only 13% of self-prepared tax returns were prepared without tax software in 2003. Since 2003, more and more people have utilized tax software products, which streamline the process of tax preparation. Convenient and easy to use, tax software products provide step-by-step navigation through the often complicated tax preparation process.

Offering plans ranging from standard to premium, tax software providers can address a range of consumer incomes and needs. And yet, 13% of individual taxpayers have not used tax software, according to the IRS. Perhaps this group consists of CPAs, number-munching whizzes of the old school or those plainly unaware of the advantages and details of the differing tax software services.

Now, those who have not tried tax software, as well as those who have, will no longer have to spend time researching information on tax software and its advantages. Tax-compare.com is a site that gives them all of the necessary information. A self-proclaimed “apples to apples” comparison of tax software, the website offers a detailed list of different software plans and advantages, along with reviews that will assist buyers in selecting the product they need.

The reviews are based on key characteristics of tax preparation software, which include:

• Accuracy: All tax software products should check for errors. Accuracy is essential because mistakes waste time (require an audit) and are expensive money (IRS fee) and generally withhold the tax payer’s refund.
• Help with deductions: Tax software supplies tax payers with tools for maximizing deductions. More deductions equal more savings.
• Affordability: Standard plans can be as low as $15-$20 for the most basic services.

These key characteristics are immediately apparent in software plans of market leaders such as TurboTax, TaxCut, TaxBrain, and TaxAct—which are all IRS authorized e-file providers. They also collectively boast customer support services and payment of IRS penalties, among other benefits.

Even with new resources like Tax-compare.com and tax software tools some people will choose to hire an accountant But hiring an accountant can often be more expensive than self-preparation and is generally not recommended.

For the rest of us, however, using tax software and E-file is an easy choice. We will save time, money, and even trees by doing it ourselves.

For additional information regarding online tax services, visit
www.Tax-Compare.com.

Zilker Ventures, LLC is a web publisher that consolidates information and reviews various business and financial products.

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Gaines Kilpatrick, CEO
Zilker Ventures, LLC
(512) 448-9031