Another year, another tax season.
Have the W2’s started cluttering your counter space yet? I know they’ve started to filter into my mail.
I panicked for a little because I’ve never done my own taxes before. My dad’s bailing me out this year and has offered to do them for me one last time.
But I can’t imagine I’m the only one who gets a little nervous at the prospect of having to do their taxes for the first time.
That leads me to our newest challenge to Daily Record readers. We are looking for someone who is planning on doing their own taxes for the first time this year. You can be someone who is sick of paying lots of money for an accountant or you can be a real first timer, who has never had to deal with your taxes at all before this year.
We want to be there from the get go, chronicling everything from purchasing and installing the software to the very last time you hit print to get your forms to mail. We want to learn how easy or hard it is for a first-timer to master the software and learn the answer to the eternal question, which is better, a person or a box?
If you are interested, e-mail me at jmilcetich@ydr.com. Include your name, age, municipality, why you are doing your taxes for the first time and why you think a software program is the better option.
Although I'm not a first-time tax payer and since you've received no other comments on this subject I'll toss in mine.
I've been using tax preparation software for about ten years and would urge anyone to use it to prepare their taxes. For one, it is the same basic software paid preparers use. There are advanced versions of most software for those whose tax preparation requires them. The software is very easy to use and not too unlike most other forms we have all completed online to register with a website, place an order, or such. The screens come up on one's computer, you fill in the blanks with the requested information and continue the process until the end when you will receive printouts of all the pages completed.
As the process continues thru page after page, your possible refund or tax due is shown at the top of the pages so that you know each step of the way. At the end you can decide then and there whether to file with the IRS on line, especially if a refund is due. My refunds are deposited into a bank account within days of e-filing. E-filing requires a small payment by credit card before it can be processed by the software. Fortunately for PA residents, on-line e-filing with the state is free so there's no need to purchase a state-filing software.
If e-filing isn't what you want to do, simply print out extra copies of all the forms to mail to IRS or the state.
A few hints to successful software use. Have all your information at the ready--W-2s & 1099-Rs and other verifications of all incomes; all 1099s showing investment incomes; a 1098 verifying mortgage interest and taxes paid. If you think enough medical out-of-pocket expenses have accrued to deduct, have those payment records readily available. Throughout the year I place every document into an envelope that verifies a paid & un reimbursable medical expense, including prescriptions and travel expenses to and from medical appointments. These expenses are not 100% deductible but if you're sure you might have enough it is a lot easier to begin tax preparation with the documents at hand.
I liken tax preparation to making a cake. One wouldn't begin to mix a cake batter without first making sure all the ingredients are available. Nor should one begin tax preparation without first checking to see if all the documents have been received.
Even if you decide this is the year to go it alone or to use software be sure to read thru the IRS book and one sent by the state you receive in the mail. Take this opportunity to become familiar with the tax jargon that will be with you the rest of your life.
I know people who paid $400 or more for years to have their taxes prepared and filed. Once I suggested they buy tax preparation software most never paid for preparation again.
(I use Turbotax and NEVER had to "talk to the box" to tell it I'm stuck!)