A tax software takes away the manual rigors of filing your tax returns solo or spending much to have a professional run it for you. Also, tax software makes handling self-employment tax as a solopreneur pretty easy.
People struggle with filing tax returns for many reasons besides earning issues. Perhaps tax concepts are pretty tough to understand, and the complications associated with completing tax forms make tax software a handy tool for the average taxpayer.
As you continue to file your tax returns, you might notice that you are eligible for some tax refunds. While tax refunds are exciting to get, are there other ways of maximizing your tax refund? Using tax software can be a great idea here, because you have the opportunity to get those refunds and ensure you access an exceptional value and result here. It will take a bit of time to get used to tax software, because these tools can be very complex.
Yet even in those cases, it becomes a really good idea to use tax software, because it will help you save a significant amount of time and effort. It’s a stellar option for regular tax payers, but especially businesses with lots of accounting data on hand.
This blog post is all about maximizing your tax refunds and the top-rated tax software to make it possible. So read on to learn more!
What is tax software?
Tax software is an electronic device or application that automatically helps taxpayers file their taxes. It assists you with preparing and tracking your tax liability to help you stay on top of things. You are less likely to make as many errors when preparing and filing your tax returns with tax software. That’s because the software is already good to go and set up. It has all the stuff you need to get started when it comes to filing taxes. And while you still need to make some changes, you have a much better and more cohesive starting point. That’s where it all comes together and gives you the utmost value.
Essentially, tax software is both a tax guide, calculator, and organizer to eliminate the manual inconvenience of tax returns. The general effect of tax software is to gain DIY experience handling your taxes. However, you can also use them to boost your tax refund.
If you are supposed to get a tax refund and get none or get lower than you should, there could be a significant problem with your filing. Every tax process starts with the filing, calculation, and accurately completing the necessary forms.
For instance, if your boss erroneously fills your Form W-2 as an employee, you could be losing a lot after generating each paystub. Similarly, if you wrongly fill your 1099 as a self-employed individual, you could get very low tax refunds or none at all. Therefore, you should accurately complete your form W-4 and other IRS tax forms to create the basis for getting a tax refund.
How tax software works to maximize your tax refund
The basic design of tax software addresses the nuances associated with tax returns for taxpayers. This way, people don't have to deal with the complexity of tax codes, their implication, and calculation. Most tax software will use complex math and programming to ensure everything is accurate. The benefit here is that it’s all set up and ready. You just install the software and use it. Yes, it’s much easier than what you had to do years ago when you filed everything manually. Now the process is more convenient and streamlined.
Essentially, the tax software runs all income tax calculations for you, including completing the necessary tax authority forms. The software works in line with the IRS tax codes to analyze your financial information and give you the safest legal ways to lower your tax bills and get tax deductions—Maximum tax refunds!
The tax software will either employ the interview method or the form method to assist you with your tax returns. Both methods are efficient, but they are suitable in certain situations. That’s why it’s a good idea to learn what they are. Here is how both ways work.
The interview method is like a question-and-answer process. However, this method does not require the taxpayer to know the different sections on a tax form. Instead, the system will ask you a series of questions that you should answer and automatically complete your forms and calculate your tax liability for you.
The form method
The form method duplicates or mimics various tax forms from tax authorities for you to fill out. By accurately completing the forms, you invariably complete the primary tax forms. This way, the government has your accurate information and can determine if you are eligible for a tax refund.
Now that you have a general knowledge of tax software and how it works, let's look at three of the top-rated options to help you maximize your tax refund. First, it's important to note that most tax software provides a free and paid user experience!
Review of the three top-rated tax software to maximize your tax refund
According to popular opinion, turbo tax is rated as the best tax software for most users. Although it is pretty more expensive than other options, it still offers a free version for simple taxes. Also, the question-and-answer user experience is pretty relatable and does not require much tax knowledge.
Turbo Tax stands out as a comprehensive tax solution, it has tax calculators and other tools to help streamline and manage your taxes. They also have live tax experts you can talk with, and guidance on how to file your taxes appropriately. It also comes down to its features, this is the most complex software for anyone that wants to file and manage their taxes.
Not only that, but this tax software is used by many tax experts with decades of experience in the industry. Yes, it can be very complex, but also very intuitive for people that want something simple and seamless. We think it’s a great piece of software for anyone that needs professional tax software and adequate tax filing.
- Easy-to-use interview format
- Accurate and reliable calculations
- Free assistance with tax audit support
- Guarantees maximum refund
- Live on-demand expert tax advice
- More expensive than other options
- Expert tax advice attracts extra cost
H&R takes care of most taxpayer issues at competitive prices with other options available. They offer a satisfactory user experience while offering paid and free service versions. The free version only takes care of simple tax returns, and you can get expert professional assistance for an extra fee.
Aside from taxes, this tax software also helps you with finances and it even delivers small business support. If you want to file taxes with a pro, it will cost you a bit, however the benefit is that you will have your hands off, while someone takes care of your taxes. And yes, the experience is also heavily personalized.
The fact that you can receive guidance for free and see results in real-time is a major benefit here. Since this tax software helps you do everything online, it certainly adds to the value you receive from preparing your taxes this way. They do have transparent pricing, however it can be quite costly in some cases. But even then, for a beginner or a small business trying to file their taxes, this can be very useful.
- It covers loads of tax forms and situations
- Web-based options if you don't want the app
- Maximum refunds, including your subscription plan fees
- Video chat with experts for help
- Industry competitive prices
- Relatively costly for most users
- High Per state filing cost
Even though filing costs per state differ, Tax slayer is still one of the most affordable options available. Also, they support a wide range of tax situations. The guidance offered by this tax software is among some of the best in the industry. They do an exceptional job at guiding you through the process and making sure you will have access to all credits, deductions and forms you may need.
There is a free option you can test out. However, it’s limited, yet it can give you a good idea of how the software works and what you can expect from it. With that being said, paid options will give you access to a variety of extra features. One of the packages has live chat and tax pro assistance, skip the line phone, and also email support. All of these are extremely important, and you will see how much they can help a newcomer.
Another thing we need to add here is the fact that they have a free app for tax filing. So if you want, you can use this tax software on the go. It certainly helps and it delivers an extraordinary experience and quality. On top of that, the tax refunds are very quick, and you won’t have to deal with out of pocket fees. They also guarantee maximum refund, so if you are eligible for a tax refund, they will do their best to give you the max value.
- Lower subscription price compared to other competitors
- Maximum refunds, including subscription fees
- A lower state filing cost
- Offers IRS inquiry and audit support
- Offers expert chat only on their premium plan
- Limited customer support services
Your claim to more tax refunds starts with doing a proper tax return. While there are other options for automatically preparing and calculating your taxes, we have only concentrated our review on the top three in the industry. Your choice on what tax software to use depends on how much you are willing to pay for subscription costs, state costs, and your tax filing needs.
What factors are likely to increase my tax refunds?
In general, any action that reduces your taxable income increases your income tax refund. As a result, you should get more tax credits, tax deductions and endeavor to itemize tax returns on your income. This way, you get higher tax refunds.
How much does a tax preparer make?
On average, a tax preparer earns about $46 800, according to the Bureau of Labour Statistics. However, tax preparers make more than the median salary, especially those with additional academic qualifications and work experience. Also, if you work in a firm in a city with a higher cost of living, you could earn more than the average pay.
How long is the Tax season?
The beginning of every year is when tax season starts and lasts for about three-and-a-half months. It is usually a hectic period for everyone, including accountants, tax preparers, and taxpayers.