Many people waste money every year by paying an accountant to do what they can easily do themselves.
If you know how to choose a good income tax preparation software, you will be able to easily fire your accountant with no worries.
1.
Do you want an online based software, or one that installs on your computer? Both have their pros and cons.
An online software doesn't take up any space on your hard drive and once you have saved your tax return you can go back to it from any computer.
I have had to do this multiple times.
A lot of the time, you can get an online based software for free if you are just doing the basics.
Some people are worried about safety, and would rather their information be kept only on their computer, this is understandable considering identity theft.
It truly depends on what you are most comfortable with.
2.
Do you require any 'specialty' filing? Usually this means anything beyond a 1040.
If you don't know what than means don't panic.
Once you have answered the software's first several questions you will know what you need to fill out.
'Specialty' filing includes self-employed, small business, very large incomes, and some other irregular situations.
Make sure the software you choose supports whatever you need.
There are many free online income tax preparation software programs, but you may have to pay extra to file some of these more elaborate forms.
3.
Does it support federal and state tax forms? In most states you will be required to fill out an income tax return.
Most income tax preparation software programs will do this filing for an extra fee, but make sure to double check.
There is nothing worse than filling out your entire federal return only to realize you are going to have to use a different software to fill out an entire state return.