Simply Junior

In 2011, online tax return softwares will be used by millions of people in USA. These softwares have become very popular not just because they make process of filing very easy, but also because through most of them tax refunds are received very quickly.

But for 2011, there are more than 10 tax filing software that are available in the USA. They are all good and are user friendly.

But, you want to select the best online tax software for 2011 returns.

How to select one? Let me give you 3 important tips to help you make that decision -

1. Guarantee associated with the software – The 1st and foremost you should check is what form of guarantees are given by the tax software company. Some companies will give guarantee that you will receive the highest tax refund for 2011 returns. Others will give you guarantee that using their software you’ll receive the fastest refunds. Of course, select the one that gives you the highest tax refunds

2. Best Customer support – Even though the 2011 tax softwares a very user friendly, often you’ll have some questions about some of the data or amount that you must enter when preparing returns. During such cases, a good customer support is very necessary. The support can be through forums where you can post tax related questions, can be a helpline telephone number or a customer support desk which answers your questions over email.

3. Ease of use and Feedback – It is highly necessary that the 2011 online income tax software is very user friendly and has very good feedback from users. You don’t want the software to stop working or crashes in the middle of your filing. Do you? So definitely check out the review of the Tax software.

• Generally most 2010 individual tax returns are due on the 31st of October 2010 unless you are granted an extension (most Accountants get an extension for their clients till the 15th of May 2011 however it is important that you request this before the 31st of October)
• Group Certificates should already be sent out to employees and the summary report is due on the 15th of August (send directly to the ATO)
• For most Business Activity Statement (BAS) lodgers (quarterly) your BASs are due this year on; June 2010 BAS 28th of July, September 2010 BAS 28th of October, December 2010 BAS 28th of February and the March 2011 BAS is due on the 28th of April. All of our clients get an extra 14 days beyond those given above if lodged by us.
• For annual BAS lodgers your 2010 annual BAS is due at the same time as you tax return.
• For other return types (ie Companies, Partnerships and Trusts) your due date can vary from the 28th of February 2011 through to the 6th of June 2011 depending on your business, lodgment history and your accountant’s lodgment schedule. If in doubt ask your Accountant or get your work in before Christmas to allow time to complete your work.

Remember if you are having trouble meeting these lodgment due dates get in touch with us or your Accountant as we can either help or request an extension of your lodgment due date to keep you out of trouble with the ATO.

Tax Deduction Checklist

The best tax deductions checklists are found in three places:

Your past years’ tax returns; With your tax professional; and Through an online tax website

Past Years’ Returns

Just by looking at the deductions you have been able to take in the past, you will get a good idea of what deductions you can take this year. If you had mortgage interest, real estate taxes, IRA contributions, and charitable contributions last year – you probably have them this year as well. The same is true of medical expenses, various taxes, that safe deposit box you keep, and if you are required to pay certain expenses, like alimony. Finally, any business deductions you have taken in the past, for a home office, travel, mileage, etc. is likely to follow a pattern you have created and budgeted consistently.

Tax Advisors

Tax professionals are great at helping you identify deductions for one time occurrences and helping you organize your records and thoughts on how to approach the deductions that are available. You may need advice on issues that you have never faced before and those that run the risk of gaining or losing large sums of money. If so, your tax advisor is a great resource for addressing these issues.

Online Help

TurboTax Online, for example, has exceptional checklists for going over everything you need to consider before preparing your return and making sure you don’t miss anything important. It asks interactive questions, points out possible deductions you may forget, and reminds of the things you need to have or consider when taking a specific deduction.

Tax laws change around year end just in time to take advantage of year end planning. This year is no exception. Congress has been busy making new laws that may affect your tax bill when you file your tax return in 2006. Some taxpayers will benefit from these new laws. Inflation adjustments for personal exemptions have increased, as well as standard itemized deductions, tax bracket adjustments, and annual gift tax exemption.

One of the most favorable law changes affecting most taxpayers is the new automatic extension for taxpayers who cannot file their tax returns by the April 15th deadline. The new law became effective in November, 2005 for returns filed in 2006. Prior law gave the taxpayer an automatic extension of four months after the April 15th deadline or August 15th. If the taxpayer needed more time to file after August 15th, they could file for another extension but needed a good reason. The IRS also had to accept that reason and grant the second extension. The new law does away with the second extension and allows an automatic six month extension or until October 15th. The new automatic six month extension does not require a reason to extend. As always, the extension is for additional time to fill. All taxes owed at the time of extension should be paid.

Laws that affect the victims of hurricane Katrina have dominated this year. The IRS was set up to handle registration calls of victims of Katrina for FEMA. If anyone had to call the IRS this past summer and fall, they meet with long hold times and overworked IRS agents. There are a number of tax law provisions that have been enacted to help the victims of Katrina get back to a normal life. If these people had retirement plans, laws were relaxed to help them obtain loans from the retirement plans. Deadlines to file and pay taxes were set to February 28, 2006 for victims of Katrina. Anyone that has been affected by either hurricane Katrina, Rita or Wilma are urged to seek help from the IRS or other organizations who have aligned themselves with the IRS volunteering time to give them free assistance with their tax questions.

Taxpayers who use their personal vehicle for work either as an employee or in their own business and use the standard mileage rate will receive tax benefits from the increase of the standard mileage rate due to increased fuel prices. The mileage rate for the first eight months of 2005 will be 40.5 cents per business miles and 48.5 cents per business miles driven the last four months of 2005 when gasoline was topping $3.00 a gallon during the hurricane season. Starting in January 2006, the optional standard mileage rate will be 44.5 cents per business mile driven. Medical mileage was also adjusted. Charitable miles remained at 14 cents a mile driven except for mileage in connection with Katrina hurricane relief efforts.

The IRS has announced the Free Filing Alliance. This is an alliance with private companies who offer free tax filing for certain taxpayers who meet the eligibility requirements to e-file at no cost to them. This must be done through the IRS website and the Free Filing Alliance at the IRS website. For additional information on eligibility, check at the IRS website, http://www.irs.gov.

Online tax filing provides an easy, hassle-free way of filing your taxes. Even if you’ve never filed taxes before, online tax filing will get you through the process, quickly and affordably.

Why file taxes online?

There is little reason to file your taxes the traditional way ever again! With online tax filing, you are guided step by step to ensure that your tax returns are accurate. Help is always available at the click of a button through an interactive system built directly into the program. Because everything is outlined for you, you’ll only need your W2s, 1099s, and other documents to complete your taxes.

Online tax filing makes your life easier. It works with the IRS system, eFile, which electronically files your tax returns. There is no need to worry about missed deadlines because you won’t have to send them by mail. At the end, you only need to click a button to send your tax returns. You can also print out a copy for your records.

With online tax filing, you won’t have to pay a tax accountant’s professional fees to get your taxes filed. Online tax filing is as low as $20, which saves you money. Because online tax filing systems are designed to catch errors, you don’t have to worry about your information being wrong. Also, online tax filing offers deductions tools so you can accurately enter your deductions and maximize your tax refund.

You can also opt to receive your tax refund check via direct deposit. With online tax filing, all you have to do is enter your bank account and routing numbers to request a direct deposit. The best part is that you’ll receive your refund check in half the time. Plus, you can skip the line at the bank and the time it takes for the check to clear.

What do I need to file my taxes online?

Just gather your W2′s, 1099s, receipts, and other necessary documents. All the information you need is contained within these documents. Online tax filing systems will guide you through the documents. Online tax filing allows you to look in the correct area and fill in the number on the online form. You won’t have to worry about reading the wrong box or entering the wrong number. Everything is outlined so you can quickly and easily file your taxes.

Online tax filing programs come equipped with a deduction finder. This ensures that you have fully taken advantage of every available deduction. Just answer yes or no questions and the online tax filing program will guide you to the right deductions. With a system so accurate, there is no need to worry about missed deductions.

The Bottom Line

Online tax filing is the easiest way to file your taxes and offers the best way to pay your taxes and receive your refund check. If you want a hassle-free, easy way to file your taxes, give online tax filing programs a try.