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  • The Tax Man Cometh

    The commercials are starting to scare you early this year.  Many are eagerly waiting to get their returns back so they can have the extra case to pay bills, perhaps even to pay off their Christmas.  So, should I listen to all the commercials and hire someone else to figure  out my taxes?  It depends on how much money you make and how complicated your return is.

    If you have a very simple return, one or two jobs and you are taking the standard deduction then it would be a waste of money to pay someone else to do your return.  If the sight of those forms at the Post Office gives you a headache, check out the IRS website.

    http://www.irs.gov/efile/article/0,,id=118986,00.html

    This website lets you choose from a variety of online sights to complete your tax returns.  The online versions are much easier than the paper forms.  You just follow the steps and answer the questions asked.  In addition, citizens with an adjusted gross income of less than $56,000 can use the software for free.  Most websites charge a fee for state taxes and a fee if you want to file the return via e-file.

    Personally, I prefer e-file.  While it may cost a couple of dollars, it usually is not very much and may even be free and is much easier than mailing the paper return as you then need to send in all the additional schedules, copies of your W-2s, and make sure to make copies of everything.

    If you are still concerned about filing your tax return, check out VITA at http://www.irs.gov/individuals/article/0,,id=107626,00.html.  This website tells low to moderate income individuals, military personnel, and individuals 60 or older where they can get their taxes done by volunteers for free.

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