Surefire Methods for preparing your taxes without coming out of pocket
In 1789 one of our founding fathers Benjamin Franklin wrote “[sic]in this world nothing can be said to be certain, except death and taxes.” More than 230 years later, you would be hard-pressed to find a more accurate statement. Of all the government agencies, the IRS is among the most feared. It is nearly palpable among the population. I once received an unexpected letter from the IRS and my heart immediately sank. As it turned out it was nothing to be alarmed about, but if I were to get another unexpected letter from them, I would most likely have the exact same reaction. Nevertheless, every year like all of you I have to reconcile my financials with the IRS. A big chunk of people get a refund from the IRS every year and look forward to tax time. No matter what side of the fence you are on, it’s likely you’re not an accountant and need some kind of help to do your taxes.
Tax Software Secret
The vast majority of people are regular W2 or 1099 employees who can easily do their taxes with one of the many tax software programs out there. Many of you pay the roughly $10-$50 fee without giving it a second thought. After all, $10-$50 to keep the IRS off your back or get a hefty tax refund is a fair trade, right? What if I told you there was a way to get your taxes done using the same tax software or one of the other popular tax software programs for absolutely $0, no catch, no strings. A few years ago I found out about a little know program the IRS offers. It has no advertising budget so virtually no one knows about it. The crazy thing is that -according to their website, 70% of taxpayers qualify for it! There are a few variables between the individual companies but the main caveat is your adjusted gross income (AGI) must be $72,000 or less. If your AGI is over $72,000 there are free fillable forms available that give general guidance but they are not as robust as the software programs. The individual software companies have their own restrictions. For example, for some of them, you need to be under a certain age to qualify. Fear not, the Cheap-O Dad will help you navigate these complicated waters. For starters, you can go here for an overview of the program https://www.irs.gov/filing/free-file-do-your-federal-taxes-for-free. As previously mentioned the different companies have some of their own criteria. The IRS has a fantastic eligibility checker to help you see which software program could be the best option for you. You just fill in some information and it spits out which of the individual software companies you would be eligible to use for free. You can use that here https://apps.irs.gov/app/freeFile
For Those Who Aren’t Comfortable Doing Taxes On Their Own
My entire adult life I have always done my own taxes using various popular software programs. 2021 will be my fourth year working as a self-employed full-time real estate agent. About two years ago I finally had to hire out my taxes being done. For those like me who are not comfortable doing their own taxes, the IRS offers the Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) programs offer free basic tax return preparation to qualified individuals. According to their website, “The VITA program has operated for over 50 years, offering free tax help to:
People who generally make $57,000 or less
Persons with disabilities; and
Limited English-speaking taxpayers
who need assistance in preparing their own tax returns.” You can find out more information about that here https://www.irs.gov/individuals/free-tax-return-preparation-for-qualifying-taxpayers. If you do not qualify there may be non-profits in your area. You may have to do a little digging but there are options out there. For example, my local library offers some free tax preparation services. Strangely enough, my local power company was even offering tax preparation services, not directly obviously but it was a surprising source, to say the least. Whatever course of action you decide to take, make sure it ends with you completing your taxes every year. Uncle Sam is not an entity you want to be cross.