TAX TIP No. 9
Getting the most from tax software
Even if you're an
experienced filer and have used the same program in
past tax years, companies invariably tweak their products.
They also usually offer tips on ways to more easily
maneuver the new features. By taking a few minutes to
familiarize yourself with the program, you'll likely
save yourself some frustration later in the process.
the 'help' link
As you're learning about your new software, locate the "help" link. We're not talking the "tax tip" button, but rather the link that will take you to technical assistance staff. A sudden error message is never welcome, especially not when you're on line 57 of some detailed tax schedule.
Most software programs offer online and phone support for specific problems as well as a basic troubleshooting guide as part of the package. Know how you can get to this help before you need it.
Run the final form check
You're done! Not quite. Before you print out or e-file your return, run the "review" option. This feature is included on most packages. On some, it's automatic as soon as you fill in the last line of the last form.
Keep in mind, however, that what a software program flags may not necessarily be an error. Many times the reviews also point out reminders or suggestions related to certain entries. Run the review, consider whether the suggestions will help (or even apply to) you and correct any legitimate mistakes. You'll be glad you, rather than the tax examiner, caught them.
Save your work
When you're finished, don't be in a hurry
to shut down the software. Save your return
as a file on your PC, as a printed copy or
both. You'll want this confirmation in case
the IRS doesn't get your return, or worse,
has some questions about it. Most of us should
keep our tax
records for at least three years; hang
onto them for six if you may have underreported
income. That's how long the IRS has to take
a closer look at your filings.
Check out other options
Finally, consider the possibility
that you may not need to buy
tax software at all. The Free
File Alliance, a joint IRS
and tax software company program
that makes online tax preparation
and e-filing free to millions
of filers, kicks off the 2008
e-filing season Jan. 16.
Taxpayers who earned $56,000 or less last year might be able to electronically file their federal forms at no cost using Free File. If this online return preparation and filing appeals to you -- and you qualify to use it -- you'll definitely save some bucks as well as time.
If you're not eligible for Free File, you still may be able to get a deal by filing online for a fee. You don't have to purchase the software; simply go to the software company's Internet site and pay a fee to use the tax program. Your tax return then is filed electronically and your tax data is stored at the vendor's site.
But don't simply accept the first free, or discounted, tax-filing program you find. Even though you're not buying the software, you still need to make sure it fits your tax needs.
Updated: Jan. 15, 2009