How to Compare Tax Filing Options

As a taxpayer, you have several different ways to pay your taxes. The service you choose is entirely up to you, but some methods can get a refund in your hand a lot quicker. As more and more Americans e-file their taxes, the process becomes less intimidating. This is true even if you do your own taxes.

Difficulty: Easy

Instructions

1. Consider whether or not to hire the services of a tax professional. Some tax professionals just take the information you provide and e-file it. Others take your information and look for a variety of tax breaks that you might ordinarily miss. All tax professionals should be able to e-file your taxes for you. Even though tax preparation services are deductible, be sure to inquire about costs up front so you don't have any surprises.

2. Purchase tax-filing software and install it on your computer. Some software programs work hand-in-hand with accounting programs to pull out the necessary numbers for your tax return. It's just a simple matter of filing your returns.

3. Go to an online tax filing service, type in the raw data and e-file directly. There is a fee for this service, but it's usually cheaper than buying software for your computer. Be sure to pick a reputable company if you choose this option. Be especially sure that you know what happens to your personal information.

4. Check your eligibility for the Free File Alliance. The IRS website lists participating locations.

5. File your taxes via the mail. If you have a simple, straightforward tax return to prepare just do it yourself, sign it, and put it in the mail with the proper postage.

Tips & Warnings

• Remember to provide all the proper forms, especially W-2s. Also remember to sign your tax return.