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TaxAct: You Can File Your Taxes Online

Posted in Money Management. on Tuesday, March 17th, 2009 by Thursday Tags: taxact, taxes
Mar 17

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If you’re expected to pay taxes in the U.S., April 15th is approaching rapidly. Whether or not you’re actually in the country, you’re probably thinking about how you can get your taxes done. Preparing a tax return can be a struggle, whether you’re a freelancer figuring out self-employment taxes from Europe or a telecommuter calculating a deduction for the business use of your apartment in Australia. If you have all your paperwork gathered up, though, you can file your federal income tax return for free online with TaxAct.

For the most part, TaxAct’s online application is able to help you prepare your taxes. While most online filing services are limited to taxpayers with relatively simple returns — working for one employer with only standard deductions — TaxAct allows you to complete a wide variety of forms online. Those include the forms associated with business expenses, as well as employment expenses: TaxAct makes over 70 forms available through its free version.

To fill out the forms, you’ll need a few forms of your own. Depending on your income sources, you’ll need your 1099s or W-4s. And if you’re planning to claim any expenses as deductions, you’ll want to have those numbers at hand. Once you click on the ‘Start Return’ button, you’ll be asked a series of questions about your income, expenses and eligibility for certain credits. Based on those answers, TaxAct will fill out the forms for you. Considering that you can often get clients or employers to email you forms as PDFs, you may not need a single piece of paper to complete your tax return this year.

TaxAct makes use of the IRS’ eFile service to directly file your federal tax return. Tax returns filed through eFile typically receive their refunds in eight to 15 days, directly deposited to your bank account. Because not all states have joined the eFile program, it can take much longer to process your state taxes. While TaxAct uses the information you provide for your federal income tax return to complete your state return, it cannot eFile all state returns. However, the application does make preparing non-resident and part-year resident state returns — the bane of web workers living in one state but officially working in another — simple.

Like most web applications these days, TaxAct does offer premium versions of its service along with the free option. The Deluxe option includes tools for those individuals who made numerous donations, need to complete the FAFSA or need additional support from tax specialists — all for $9.95. The Ultimate version, priced at $16.95 includes expert help, a guarantee that your return will be accurate and includes the state return. If you choose the free version, preparing your state income tax return will cost an additional $13.95.

While you may have some concerns about completing your tax return online — you do have to type in your Social Security number, after all — the TaxAct site is considered secure. Its security measures have been verified by the same companies that verify sites that access bank account information, like Mint.com, as well as by other organizations. In general, it is a safe option for completing your taxes.

2 Comments

  1. Working at Home Blog Carnival-129th Edition on March 20th, 2009

    [...] Bram presents TaxAct: You Can File Your Taxes Online posted at Working Your Way Around The [...]

  2. Real Words at the Blog Carnival | Real Words on March 23rd, 2009

    [...] addition to this advice section there were sections on business tips (like taxes and outsourcing) and home tips. And there was a general section with tons of articles on topics [...]



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