As April is approaching, the tax preparers are waiting with their doors wide open for those who are looking forward to file when the IRS or the Internal Revenue Service starts accepting returns on the 31st of January, 2014. Due to the sluggish economic condition in the US, most taxpayers aren’t able to bear the hefty price that comes with professional tax preparation. In fact, according to the reports of the National Society of Accountants, the average cost that you may require to prepare a 1040 tax form including all the itemized deductions and a state tax return is around $261.
On the other hand, the cost involved in preparing a non-itemized 1040 and state tax return is around $152. Are you someone who is looking forward to save money on tax return preparation in 2014? If answered yes, you can take into account some tips mentioned below to know how you can get your taxes done without spending a dime.
1. Income tax counseling for the seniors: It has been seen that most often people who are above 60 and older than that find difficulty while preparing their tax returns as they don’t remember the nitty-gritty details of the entire process. The Tax Counseling for the Elderly by IRS, which is abbreviated as the TCE program, offers IRS-certified and accredited volunteers through AARP to assist the people who are above 60 to prepare their tax returns and answer any other tax-related queries about retirement plans or pension accounts. You can visit the official website of AARP or even search by the address of the county.
2. Volunteer Income Tax Assistance program: If the annual income that you make in a year is less than $52,000, you may qualify for e-filing and free tax return preparation from volunteers certified by IRS, through the Volunteer Income Tax Assistance program, abbreviated as the VITA. The tax preparers can ensure that you don’t miss some valuable tax credits which you qualify for, like the Earned Income Tax Credit and the Child Tax Credit. If you’re looking for the VITA centers, you can get them anywhere located throughout the US. Be sure you gather all the paperwork before you pay them for their visit.
3. IRS Free File: What if you’re not able to qualify for the assistance through VITA due to high income? You need not fret as you can still be able to prepare and e-file your federal return through IRS Free File leveraging the tax preparation software from the companies that have already partnered with the IRS. However, here too there is a restraint as you won’t be able to qualify for this if your annual income exceeds $58,000. The participating firms may include TurboTax. H&R Block, Free File Alliance and TaxAct. The free editions are best for all the first-time income tax filers or those who are filing some simple tax returns.
4. IRS Free Fillable forms: The IRS Free File program offers a Fillable Form component that you may use to prepare and file your IRS income tax return online. This will be free of cost, irrespective of your annual income. However, it is unfortunate that this option doesn’t offer on-screen assistance or state return filing options, unlike those that are offered through the software programs.
The entire process of filing your income tax return is complex enough and it should be executed with enough care and concern. A single mistake anywhere can make you vulnerable and susceptible to an IRS audit. Hence. get in touch with a knowledgeable professional as cutting corners with someone with not enough experience may cost you more money at the end of the process.