How to File IRS Taxes? Which Method Works Best?

Last Revised on November 29, 2010

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Every year we have to file taxes for the money we earned from working or howsoever. Some will pay the IRS while others will get the refund check. There are also many different ways to file taxes and not all the method works best for everyone.

How to file taxes?

There are many options to file a tax return. Each one offers its own benefits and disadvantages such as cost, amount of time it takes to complete the process, accuracy, etc. We will explore all these pros and cons here.

1. Tax Forms.
2. Hire an Accountant such as CPA.
3. Tax Preparation Company like H & R Block
4. Computer Tax Software like TurboTax
5. Online Tax services like TaxSlayer
6. File it next year.

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6 Responses to “How to File IRS Taxes? Which Method Works Best?”

  1. h&r block software Says:
    November 29th, 2010 at 11:39 am

    i like the software best. Why? It’s so easy even the caveman can do it. Seriously, unless you run a big corporate business, you only need the software even if you are just an employee making good income. It is cheaper than the service you are paying for. I mean you can buy their exact software and pay far less the price. And once you fill out all the information, if you still worried about messing them up you can still buy something similar to their peace of mind guarantee so you don’t have to worry. It is simply more efficient too; you just download it and no need to spend time wasting on going to tax professional.

  2. Judy Says:
    November 29th, 2010 at 11:39 am

    The “peace of mind” guarantee only pays anything if the error is H&R Block’s, not if you make the error.

    You have another option if your income is under about $40,000. Find a VITA or TCE site – see irs.gov for more information. Trained volunteers will prepare your taxes at no charge.

  3. Ways to file taxes reviewed Says:
    November 29th, 2010 at 11:39 am

    Here is my brief review and explanation about various methods I have used in the past. Turbo tax works like a charm, never had any bad experience thus far. It is so user friendly and easy to use, it has error checks built in which helps a lot, and asks you a lot of simple straight forward questions like tax return forms seem to ask in a complicated way. If you haven’t used Turbo Tax, I would suggest don’t fear using it having used myself for more than 10 years now and every year it just gets better and easier.

    The hardest part of doing your taxes is gathering together and organizing all your paperwork … and you have to do that whether you use Turbotax or take them to HR block, or whatever so why pay the huge fees to have a tax preparer do what you can do yourself in just a few hours using Turbotax. It’s a great program and once you’ve tried it you’ll wonder why you ever wasted the money going to a tax preparer.

    My comparison of the options are listed as follows:

    1) A Tax Preparer like H & R Block. Waste of money. Over priced and all they are doing is asking you the same questions you get asked by the software program. It could be expensive. Some say they charge you fees based on your tax refund amount.

    2) Online Tax Service, also known as efile. You can use this but if you do, go to a well known, reputable company such as TaxSlayer online so you KNOW that the forms are up to date and all the latest tax law changes are incorporated. The Turbotax software automatically checks for updates several times in the process.

    3) Computer Software. Highly recommended and go with Turbotax not Taxcut unless you get it for cheap (H&R Block’s version not as highly rated as Turbotax). Only one other software package is consistently rated higher than Turbotax (I believe it’s Kiplingers) and that costs a LOT more than turbotax not worth the money.

    4) Snail mail. This is the old conventional method of filling in tax forms and sending it through a mail. You don’t pay a dime for this, except the postage stamp. Don’t use this unless you have such simple taxes you can file the 1040EZ form. The odds of you making an error are much too great and all the double checking and working through tables of numbers to find the tax, etc. is NOT worth it. Using the paper method it can take anywhere between 5 to 10 hours to do taxes depending upon your own personal experience. However, with Turbotax it can be done within 2 to 3 hours, if not less, depending on your tax situation in a given year. I have fairly complex taxes and Turbotax cuts the time into one-third of what is required by others..

    5) Accountant. This is a good option but not the best. only if you have extremely difficult taxes such as small business’s tax, otherwise they charge lofty fees. Most people don’t need to go to the cost of an accountant.

    And above all (because I have to throw in this plug … SUPPORT THE FAIR TAX. It will create economic growth in this country, reduce all our taxes, abolish the need for the IRS, and save 2 billion dollars of costs used to process tax returns every year!!

    Sincerely, Jeff Sweetner.

  4. Jen Says:
    November 29th, 2010 at 11:39 am

    i have a CPA do it. he’s a family friend. my whole family does it with them (my great grandmother on down) and he gives us a discount. way better then going to H&R block. he knows tax law inside and out. i used H&r block softwear one year and totaly screwed it up.

  5. tax payment down at the rate of Penny on the dollar? Says:
    December 7th, 2010 at 7:45 pm

    Ok here my question that has been worrying me a lot. i owe some taxes, it is not a lot but little bit more than i can pay. I have already file the tax and have now received a letter from irs which states that if I make payment arrangements I will be paying more penalties and interest than what i owe. therefore, do you think it is better for me to cal irs and see what i can work out with them on this or hire a tax specialist who claims he will be able to get the tax bill down to pennies on the dollar and remove most or all of the interest and penalties? it sounds so simple and too good to be true, but i have heard people have done it before. thank you so much in advance. I really appreciate any help.

  6. Best way to file taxes is Doing It Yourself Says:
    December 15th, 2010 at 10:03 am

    I have been a DIY man my whole life, and five years ago I learned to file taxes myself. It’s not that filing taxes are difficult, but if you own businesses and have various streams of income and expenditure going on things get quite complicated. That’s why it took me long to get my act together. I personally won’t suggest everybody to file taxes themselves, especially if you own a small business; it might not be worth all the stress and hassle of making mistakes and getting audited by IRS later on. Instead best way to file tax is to buy tax software such as Turbo Tax or HR Block; it will be accurate, amount you owe or the refund checks you are supposed to get will be calculated more accurately than by a tax professional. You can use them over and over for a small price. Rolland Price.

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