Tax filing season is well underway, and whether you’re young with a relatively simple return or you’ve been around the block and have dozens of pages of documents, the annual ritual tends to give most people an ample dose of anxiety. But as the IRS works to keep up with our technologically-savvy society, tax preparation is gradually becoming less unnerving for most Americans.
The tax-filing process for people with relatively uncomplicated financial lives has hit a new level of simplicity. Apps like TurboTax’s SnapTax and H&R Block’s Block At Home 10-40 EZ Tax App allow 1040EZ filers to file directly from a smartphone. These are taxpayers who don’t own a home or have kids; only have W-2, interest or unemployment income to report; and they earned less than $100,000, or $120,000 if married. Once you download the apps, all you do is snap a photo of your W-2 to import your information, answer a few questions and review what you’ve entered. That’s it! By the way, using H&R Block’s app is free through the end of February, so get to it!
You can also interact with the IRS through your smartphone. The agency’s free app IRS2Go allows users to check the status of their federal income tax refund. If you e-file your return, you can check the status within a few days, but with a paper tax return you have to wait three to four weeks. The app does require you to enter your Social Security Number, and although it’s encrypted, make sure to use a secure wireless connection to protect yourself and your personal information.
The IRS recently released a new version of IRS2Go with three new features:
Even without a smartphone, for most Americans the process of filing federal taxes online is the easiest way to go. The IRS encourages taxpayers to e-file and says it’s the best way to ensure accurate tax returns and get faster refunds. Everyone can use the IRS Free File program to file federal taxes online. Taxpayers who make $57,000 or less a year can choose from about 20 different free tax preparation software providers. People with larger incomes who still have relatively simple returns can use the Free File Fillable Forms, which are electronic versions of traditional IRS paper forms.
If you have a relatively simple financial life, HLN Money Expert Clark Howard says do not pay someone to do your taxes. But even with simple returns, it’s easy to make big mistakes. Not everything is available online, so make sure you have everything you need, including documentation of anything that qualifies as a deduction or credit, which is usually still only available via snail mail.
You have until Tuesday, April 17 to file your 2011 tax returns. If you aren’t familiar with the process and don’t know what qualifies as taxable, check out the tax guide for individuals on the IRS website that provides the basics for new filers.
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