The old way of doing your taxes with a pen, paper, and calculator is certainly not the easiest. With everything going digital, it should be no surprise that tax forms are too. Using tax software will simplify the usually dreaded process of filling out your tax returns.
Two of the most common tax form tools are:
W-2
The W-2 form is a requirement. It shows how much you have earned and how much taxes you have paid during the last taxable year. Usually, it’s your employer who will send them to you, but if you’re self-employed you are responsible for paying your own taxes and you can do this easily when you create w2 forms online.
The auto-calculator will ensure no errors as long as the information you filled in is correct. It’s important that if you’ve been working two jobs over the past year, you will need to fill out two forms. If you’ve left a job somewhere in the middle of the year, you will still need to fill out the form up till the time you were working in that particular job.
1099-Misc form
If you’re self-employed, you will need to receive a 1099 form from each client that pays you at least $600 during a taxable year.
A tax form isn’t that different from filling out a questionnaire, but it is quite long. You simply enter the information required in the blank fields. The software will give you the options and you just do the clicking. You just keep doing this on each page of questions until you finish. You don’t have to know anything about the IRS form when working with the software. You won’t even have to see it, but you can usually find that option if you want.
Filling out tax reforms is a tedious process. It involves a lot of details and lots of shuffling between papers if done manually. As you would expect, you can easily fill out forms with software. Some of the most obvious perks in these tax form tools include:
- Speed: People get concerned with how long it will take to fill out forms, but with tax form tools you can fill out forms in a breeze. In a matter of minutes, you can find all the forms you need, because the software makes the process faster. Add to that, it saves the information and could give you notification reminders of forms still needed to be filled or incomplete forms.
- User-friendly: Probably what you want most from the tool is for it to be user-friendly. It will guide you in the step by step procedure. It should be easy in navigation and in filling out the form. You want to be confident about your return, so the best tool will make sure what you filled is error-free.
There are different ways to do your taxes. You can do them on your own, but risk the errors meaning risking an audit. You can hire a professional, but that can be costly. And you can try user-friendly software that is inexpensive and gets the job done.