The Internal Revenue Service recently announced that its is going to begin processing 2021 tax returns. Most of us do not have our tax information yet, which is why it is the perfect time to decide who is going to complete your return this year.
Most people will automatically go back to who they used last year; however, that may be a mistake. It is important to remember that you and I are each responsible for filing an accurate tax return. So, before you get your tax information, start considering who should do your tax returns.
For those competent on the computer, there are many good tax programs to consider. These software packages are generally easy to use, particularly if you have straightforward tax situations. The tax software packages will absolutely work well for someone who has W-2 wages, 1099s from investments and is taking the standard deduction. However, there is another alternative you should consider and that is the IRS Free File program.
If your adjusted gross income is $73,000 or less, which it is for most Americans, you are eligible to take advantage of the IRS Free File program. The free file program is a public-private partnership between the IRS and many of the tax software companies. This program has been around for years but is often underutilized. The program allows taxpayers to use these private companies’ tax preparation software for free. In other words, it is not the IRS preparing your tax returns; rather, it’s one of the software companies….
