Learn Top 10 Advantages of Using Tax Software

If security is a major concern for you, check to see if your tax software manufacturer has a desktop version of their software. Rather than accessing the program through the Internet, you can download it straight to your computer’s hard disk. When you use the application to enter your tax information, the generated data is stored on your computer and is not sent somewhere else. Only when it comes time to file your taxes with the IRS will you need to send your sensitive information anyplace else—and this process, too, is highly secure.

4. It is free of errors

Over 9 million people committed math errors on their tax forms last year. Making the necessary changes might be frustrating and time-consuming for some. For example, you may be required to file an updated reform, pay additional taxes, or perhaps face fines or penalties.

You put yourself at risk of inaccuracy if you complete your taxes by hand and perform computations by hand. Tax software, on the other hand, is not affected by this issue. Most software will walk you through your tax return step by step, and all you have to do is follow the instructions while it handles the calculations.

Tax software works because it is programmed to perform extremely particular duties with pinpoint accuracy. So, if you don’t want to double- or triple-check every line of your tax return, use tax software—it’ll get it correctly the first time.

Furthermore, all major tax software companies provide guarantees. If the program ever makes an error on your tax return, the corporation will pay all associated fines and penalties.

5. It means quicker refunds.

Everything is done electronically when you use tax software. There will be no more snail mail, postage, or the other annoyances that come with doing your taxes by hand. Your paperwork will be processed faster—and your refund will be paid sooner—because your tax software automatically e-files your tax return. Choose to have your refund deposited directly into your bank account for the greatest results.

6. It can help you save time and money

Some tax software packages can cost up to $100, but if your tax situation is straightforward, you may be able to get by with free tax software.

Leading tax preparation companies such as TurboTax and H&R Block provide free federal and state filing for taxpayers with simple tax returns (W-2 earners claiming the standard deduction fall into this group).

If your AGI is less than $73,000, you can also file your tax return directly with the IRS using IRS Free File.

Taxpayers with more complex tax situations, such as freelancers, self-employed individuals, and small business owners, can also benefit from tax software to save time, money, and energy. Instead of manually recording deductions, mileage, credits, and other items, tax software can do it for you. Simply keep track of your expenses online, and you’ll have the information you need ready for tax season—rather than the other way around.