Here’s why the right tax preparation software is better than using a pencil and paper.
As tax season looms near, you’ll start hearing more about tax preparation software. But should you make the switch? If you’re like the majority of people, the thought of doing your taxes makes your heart skip a beat—and not in a romantic comedy sort of way. You may even put it off until the last minute out of fear. Instead of working harder on your taxes, however, it’s time to work smarter. Here’s why changing your tax preparation method to use the right tax preparation software will help reduce your stress levels on April 15th this year.
Understands the Tax Codes
Does it seem like the IRS wants to watch you suffer during tax season? The ever-changing tax codes make it almost impossible to know how to file. As soon as you get comfortable with the current regulations, the government changes something. Instead of pulling your hair out this year, let a software program handle the updated rules for you.
The best programs automatically update whenever the IRS revises a form or regulation. But, you should still always double-check for any updates and invest in any new software releases before you start your return. As long as you enter your numbers correctly, you can rest assured your computer will handle the rest.
Less Room for Error
Avoidable mistakes top the list of reasons for individual tax audits. The IRS doesn’t make it easy to file your taxes. Long forms, confusing jargon, and complicated rules increase the odds of making an error along the way. And if you still do your taxes with an ancient abacus, it’s time to step into the current century.
Calculators and pencils are a thing of the past. Using a software program to handle your taxes is much more reliable. You type in the numbers, and the computer calculates the results. Never again will you skip a line or forget to sign. The more accurate your taxes, the less likely you’ll receive an audit notification.
Remembers Your Information
How much money did you donate to charity this year? What was your tax burden two years ago? Like most people, you probably can’t answer these questions without pulling up old files and paperwork. However, if you used a computer program to complete your taxes, you can find the answers with a few clicks.
Once you enter information into your tax software account, it’s there unless you delete it. This benefit makes it easier to do your taxes throughout the year. Instead of waiting until the deadline, enter any expenses or deductions as they occur. Press the save button, and voila! Your information will still be there when you finally decide to finish your taxes.
Is Computer Software the Best Tax Solution?
While it’s true that purchasing a tax program is better than filling out the forms by hand, it may not be the right choice for you. Yes, computers are pretty much perfect, but humans are not. There is still a risk that you may forget to report something on your taxes. Even worse, you may end up using outdated software without realizing it. Letting a tax professional handle your return is the fool-proof way to ensure you file your taxes correctly and on time.
Incompass Tax, Estate & Business Solutions takes the guesswork out of doing your taxes. Having access to a living, breathing person makes it easy to get answers to your burning IRS questions. We have decades of tax experience, and we can handle any tax situation. Get in touch with our experts before you invest in what you think is the right tax preparation software.