This is a guest post written by the team from efile.com

Every year between January and April 15 (this year in 2011 it’s actually April 18) most of us prepare our Federal and/or State Tax Return. The bad news is Taxes are getting more complex and there are more tax regulations (you know the “if this then that” stuff) than ever. The good news is there is help, online tax preparation and efile options. Like with most other things these days you can just jump on your browser and type in www.efile.com and you are on your way to get your taxes done, let’s say less taxing.

Did you know that last year almost 70% of all American individual taxpayers either efiled their taxes themselves or efiled through a tax professional? That’s almost 100 million people! These numbers speak for themselves and here is why:

1. IRS-efile is more accurate than filling out a tax return on paper because the online efile software reduces filing and math errors by 20 % (and it’s good for the environment, saves lots of paper/trees).  You will be guided through an easy to understand online tax interview were you only answer with yes or no and based on your answers the software will ask you to enter your tax information. This also means that you will not miss deductions or you will be made aware of possible deducitons you might have overlooked in the past. Once you are done with that the efile tax software will perform all necessary calculations for you, so there are no math errors to be made, and it will let you know if you are missing necessary information on any forms. Learn more here about the benefits and how online taxes and efile work in greater detail.

2. efile Is More Secure because efiling is much safer and more secure than old-fashioned paper filing.  Simply because your tax return will be safely encrypted and transmitted to the IRS. When you efile, nothing will get lost, damaged, or stolen in the mail. The privacy and confidentiality of your personal information will be protected when you efile. After your tax return was accepted by the IRS you can download the completed and accepted tax return online.

3. Faster and Maximum Tax Refund with efile: Yes, you will not only get your tax return to the IRS faster than the Postal Service you will also get your tax refund much faster as well. With direct bank deposit you can have your tax refund in as few as 8 days from the time the IRS accepts your efiled return.

Start and Try efile free without any obligations

You can prepare and efile a simple tax return for free on efile.com The FREE FEDERAL EDITION includes the tax form 1040EZ and is absolutely free and guides you through a simple online tax interview.  The efile.com software will upgrade you automatically to the 1040 or 1040A should this be required based on your tax answers; in this case a preparation fee will apply and you will be immediately notified about this.

Since most of us don’t want to do tax returns but must do so in order to avoid penalties or even prison efile.com is a safe choice by offering these 3 piece of mind promises:

1. Guaranteed Biggest Refund         2. 100% Calculation Accuracy      3. Tax Audit Assistance

Less Taxing. More Value with an IRS-approved, trustworthy efile provider like efile.com.

Get 10 % OFF on all paid Tax Services on efile.com with this special Limited Time (expires Feb. 21, 2011) promo code offer: fb10efile

]]> http://savingmoneytoday.net/one-of-the-2-certain-things-in-life-is-certain-again-tax-day/feed/ 1 http://savingmoneytoday.net/do-you-do-your-own-taxes/ http://savingmoneytoday.net/do-you-do-your-own-taxes/#comments Sat, 15 Jan 2011 13:07:32 +0000 Mike http://savingmoneytoday.net/?p=1775

In the past, I’ve always done our taxes myself, but this is the first year that we’re actually planning to use an accountant.

When I first started working and earning an income I was young and had nothing to deduct.  I was able to use the good old 1040EZ form which was a piece of cake to fill out.

As the years went by our situation gradually became more and more complicated with kids, a house, mortgage interest, student loan interest, and medical expenses.  Even when I first started my online business and had to worry about income, expenses, and business taxes…I still didn’t have much trouble doing my own taxes because TurboTax and tools like W2 Instructions made it really simple.

But with my father-in-law’s passing away last year we have a whole bunch of things up in the air.  Some stuff is in his name, some is in my wife’s name, some we’re not even sure who has to pay the taxes on some stuff.  Plus as my online profits continue to rise I want to make sure I’ve got everything covered.

So since my time is stretched thin already these days and I’m not even sure how 2011 tax changes would affect us, I think we’re better off getting some professional advice.  Who knows, maybe he can find some business expense or tax credit that I’ve been missing out on or show us how to save through other deductions.  Plus, I want to find out if some of the home improvement work we have planned is eligible for energy tax credits in 2011.

What about you?  Who does your taxes?

It’s a hypothetical question of course…but one worth considering. After all, many people move to Florida when they retire to avoid state income taxes, but will federal tax rates ever reach the point where people actually decide to pack up and leave the country?

As I write this the current US deficit is $13,734,305,801,350.45.

That’s close to 14 billion dollars…and growing. If you divided that equally across the estimated population of the United States, each of us would owe over $44,000!

Now there are all sorts of stories on the news about tax increases, the reduction of Social Security benefits, and various spending cuts to get our budgets in line (I think all politicians should have to take a class on how to budget). So basically we’re looking at a situation where we could be spending more and getting less in return. That’s not exactly a formula for success and contentment.

But what are the alternatives? We can’t just continue digging ourselves deeper and deeper into debt can we?

Would you ever consider moving to another country to avoid taxes? How much would taxes have to increase before you start researching various tax rates by country to find a new place to live?

And where would you go? My wife has family in Italy and I’ve always wanted to visit, but I’m not sure I’d want to up and move. What about you?

Lawmakers are considering legislation that would delay eligibility for full Social Security benefits until age 70 for millions of young Americans.

Today the full Social Security benefit retirement age is 66 for people born between 1943 and 1954.  It gradually increases by 2 months per birth year until reaching age 67 for those born in 1960 or after.

I’m only 33, so if the retirement age is delayed to age 70 I will certainly be affected.  But you know what?  I think I’m ok with it.

Let’s face reality.  The Social Security program is in serious trouble.  According to the Trustees Report, the Social Security trust fund is scheduled to run out by 2037, at which point there will only be enough taxable income to pay about 75% of scheduled benefits.

It’s obvious that something needs to be done, and since life expectancy is much higher today than it was back in FDR’s day it makes sense that the retirement age is adjusted accordingly.

But I don’t think that’s enough.  I’d also like to see an increase in the taxable maximum.

Social Security is financed through a dedicated payroll tax. Employers and employees each pay 6.2 percent of wages up to the taxable maximum of $106,800 (in 2010), while the self-employed pay 12.4 percent.  So if you make less than the taxable maximum your entire salary is taxed.  But if you make more than that, anything over the maximum is not taxed.

I’ve never really understood why the burden of paying for Social Security was almost entirely on the shoulders of the working class.  Why should a middle class worker making $106,800 pay the same amount ($6,621.60) in Social Security taxes as LeBron James?

You don’t think the wealthy are using smart Social Security strategies to ensure they receive the benefits they’re entitled to?  Of course they are…they didn’t get wealthy by making poor financial decisions and leaving money on the table.

I say up the taxable maximum.  It will increase the amount of taxable income without devastating the middle class and working poor.  And it will help insure that Social Security benefits are still around for the people who need them most.

What are your thoughts?  Are you willing to push your retirement back a few years or pay more in taxes if you earn over the taxable maximum?

If you’re like most people you can expect to receive an annual tax return between $2,000 and $3,000.   While that’s not exactly a life-changing sum, it is enough to shore up your financial situation a bit if you use it wisely.

Here are 7 smart things you can do with your tax return:

1.  Start an emergency fund.   Most people don’t have an emergency fund and if you’re one of them you could be in trouble if you suddenly find yourself out of work.  Set aside your tax return to start an emergency fund or add to one you already have.

2.  Pay down your debt.   It may just be a drop in the bucket compared to what you owe, but your tax return can at least put a dent in your credit card debt.

3.  Make a principal-only payment on your mortgage.   If you can manage to do this annually you’ll pay off your mortgage years early and save thousands of dollars in interest.   Just make sure your lender applies the entire amount to principal.

4.  Start a college fund for your kids.  Face it…college isn’t cheap and it’s getting more and more expensive every year.   Take your tax return and open up a 529 plan to help pay those expenses when your little ones are older.

5.  Sock it away for retirement.    Open up an IRA account for you or your spouse (or both) and deposit your tax return so it can grow until you’re ready to retire.

6.  Use it to improve yourself.   Take a class and learn something new.  It’s important to invest in yourself…improve your skills, make yourself more marketable and increase your earning power.

7.  Send it to me as a gift! Just kidding…I’m sure I could put your tax return to good use but you’re better off using it to improve your own financial situation.

Months ago my town announced they had commissioned a reassessment of all property values within the city limits.  Every property in town would be appraised and everyone’s property taxes would be adjusted based on the revised assessment.

The total amount of property taxes collected by the town would stay the same, only our individual shares would be increased or decreased based on our new property values. 

Needless to say I was a little nervous when I learned that our property value had increased from $146,000 to $278,000.  How much was this gonna cost me!

Well as it turns out I’m actually going to save a few bucks.  $961 to be exact! 

That’s right, after years of watching my property tax bill shoot up higher and higher I finally get to see a decrease from just under $9000 to just under $8000.   That’s still a lot compared to most of the country but in Northen New Jersey it is the going rate for a modest sized home.