Do you have a simple tax return to prepare? Those with very simple, basic tax return, only need the free tax software which is sometimes provided by tax software web sites, e.g., Turbo Tax, H&R Block and Tax ACT. You also most likely quality the IRS Free File program. Keep an eye out for added costs when it come to e-filing and state taxes. If the prices seem very high, then bottom line the service is not free at all!

The complexity of your personal finance and investments will in large part determine your need for tax preparation software. Let’s say you are employed with a take home pay of $45,000, run a home based business say with Arbonne International that brings in a good income of about $50,000 a year. In addition to that you have rental property and you are also a whiz at playing the stock market. It is very clear then that the level of tax-prep assistance you need can best be provided by a CPA. You my friend will need excellent tax preparation, advice and planning.

On the other hand if all you have is a job with a W-2, own a home maybe a side gig of some sorts that brings you money then your tax returns are going to relatively simple and straight-forward. A simple tax preparation software will suite you just fine.

Software programs may make more sense if your tax-related paperwork is organized, forms don’t intimidate you, and you know where to turn online to determine the tax deductions, credits and rebates that are available to you.

How do you want to file your taxes? If you want to File Electronically, then you will need an online tax preparation software which will most likely include the cost of the software itself, sometimes e-filing charges and most often State filing comes at an additional fee. If you do your own returns, the IRS offers free live tax assistance (800-829-1040).

Another important consideration is the fact that tax laws are ever changing. That said DO NOT buy the previous years Tax preparation Software. The tax preparation software should indicate clearly what year it is to be used for as well as the tax references for the year prior. For example in the year 2009, you will be preparing income taxes for the year 2008. Do not ignore this piece of advice. Many stores will be selling lasts years software at a discount. Consider this a word to the wise (you only need purchase if you are doing back taxes).

In summary if you use tax preparation software to get your taxes done, then every year you will need to upgrade. If your taxes are straight forward and simple, you need the basic software programs. If your taxes are more involved with investments and properties you will need deluxe, premier and where applicable the home-based business options. Anything that exceeds the scope of this, then you my good friend must be Bill Gates or Oprah Winfrey Or Warren Buffet. In which case you need CPAs. Tax lawyers and host of other things that tax preparation software will not provide!

Don’t wait until April 14 to get started. If you know you are going to need an extension file early. This is the era of personal responsibility. I didn’t know does not have an air of credibility to it, neither will it hold up with it comes to dealing with Uncle Sam! The following Income Tax preparation tips should help you have the most painless experience for filing your taxes.

1. Visit www.irs.gov , this will be the best resource for what you need to know and you can file your taxes with them. The IRS “Free File” offers free tax preparation software to prepare and e-file your 1040. State taxes come with an additional cost tacked on.

2. Whenever possible file your own taxes. You can do this using any tax preparation software. After which you can have a professional look it over to give you peace of mind. Be sure to use a reputable tax professional who signs the tax return and provides a copy.

3. If you do choose to go with an income tax professional be very cautious of tax preparers who claim they can obtain larger refunds than other preparers. It is advisable to avoid preparers who base their fee on a percentage of the refund.

4. Gather the correct tax documents for your income tax preparations, W-2 vs. 1099, receipts, medical bills whatever you deem necessary for your taxes have it handy.

5. If you are going to used tax software to prepare your taxes make sure it is a licensed copy bought by you. If you go the online route use only trusted and reputable companies such as Turbo Tax, H&R Block or your favorite. Do not give out your personal information.

6. File Online. No only will you save time, receive instant confirmation that the IRS received your tax forms on time but you will also speed up the refund process because it takes less time for the IRS to receive your taxes. All tax preparing professionals should be able to file your taxes online for you. Just ask and make sure you get documentation that your taxes were indeed e-filed.

7. Take Advantage of Direct Deposit. Remember how I said you will speed up the refund process earlier? If you file for direct deposit, you will receive your refund much more quickly. Just be sure to provide the correct details for the money to be sent to you. How will you know when you get it? Well…it’s going to be a nice huge sum that how you know. You will need your bank’s routing number and your account number. Both of these numbers are available on your ONLY on checks.

8. Avoid the temptation and beware of fast pay loan options

You will pay an exorbitant amount in fees and interest to receive your refund just a week faster than normal. With the ability to file online, and with the amount being direct deposited into your account, the estimated time to receive your refund is about ten days. This is a reasonable amount of time to wait. A little patience in the matter will save you hundreds of dollars. You’ll be glad you slept on it!