Are you prepared to spend more than a full day filling out your tax return? That's the IRS' estimate of how long it will take the average taxpayer to complete Form 1040.
Sure, that includes the time it takes to pull together and sort through all your necessary tax receipts and records, learn about the Form 1040, decipher its instructions, copy the completed form and send it in. But even discounting these ancillary duties, the IRS figures it still will take around four hours just to fill out this most popular income tax return.
And if you have additional schedules or tax credits to file, you might be measuring your tax time by the calendar instead of the clock.
Don't want to spend that much time with your 1040? Then tax-preparation software may be the answer. These packages promise to save you time and money by putting tax law and the forms you need at your fingertips. And some tax-prep devotees contend they can even save your sanity during tax season.
If you decide this year to join the millions who do taxes on a computer instead of paper, here are some ways to make the process go more smoothly.
Determine your needs
Not too long ago, there were only a few choices when it came to doing your taxes by computer. But nowadays, a new tax-prep package seems to appear daily between Jan. 1 and the filing deadline. That means you must do some homework before you pick a program.
First, evaluate your personal situation. Are your taxes relatively simple or do you have a lot of considerations, such as a freelance job on the side, that could add to or cut your tax bill and filing requirements? Not exactly sure? Then look for a program with lots of explanations that walk you through the process step by step.
If, however, you're an old hand at tax filing but want the software calculators that double-check your math, look for a package that lets you easily skip over sections.
And don't forget the technical requirements. Make sure your computer can handle the software: that it has enough memory, the proper operating system, etc. Nothing's more frustrating than getting a product home and finding out you can't use it.
Read more: What You Need to Know About Tax-Prep Software
Sure, that includes the time it takes to pull together and sort through all your necessary tax receipts and records, learn about the Form 1040, decipher its instructions, copy the completed form and send it in. But even discounting these ancillary duties, the IRS figures it still will take around four hours just to fill out this most popular income tax return.
And if you have additional schedules or tax credits to file, you might be measuring your tax time by the calendar instead of the clock.
Don't want to spend that much time with your 1040? Then tax-preparation software may be the answer. These packages promise to save you time and money by putting tax law and the forms you need at your fingertips. And some tax-prep devotees contend they can even save your sanity during tax season.
If you decide this year to join the millions who do taxes on a computer instead of paper, here are some ways to make the process go more smoothly.
Determine your needs
Not too long ago, there were only a few choices when it came to doing your taxes by computer. But nowadays, a new tax-prep package seems to appear daily between Jan. 1 and the filing deadline. That means you must do some homework before you pick a program.
First, evaluate your personal situation. Are your taxes relatively simple or do you have a lot of considerations, such as a freelance job on the side, that could add to or cut your tax bill and filing requirements? Not exactly sure? Then look for a program with lots of explanations that walk you through the process step by step.
If, however, you're an old hand at tax filing but want the software calculators that double-check your math, look for a package that lets you easily skip over sections.
And don't forget the technical requirements. Make sure your computer can handle the software: that it has enough memory, the proper operating system, etc. Nothing's more frustrating than getting a product home and finding out you can't use it.
Read more: What You Need to Know About Tax-Prep Software