Filing taxes on the internet from your home computer is a growing trend each year. The IRS reported that last year nearly 95 million Americans chose to take advantage of online tax filing. Each year, as more Americans have affordable access to computers and an internet connection, the number or online tax filers continues to grow.
When it comes to filing your income taxes online you basically have two options. Your first option is to purchase a tax filing software package from a retailer or download one online. Your second option is to purchase a web based tax preparation program on the internet. These programs are often offered in basic form for free by companies such as Turbotax, H&R block, or Taxact. Using a web based program is a fast easy way to prepare your taxes online without spending a lot of money purchasing tax software programs.
Using free online tax preparation software is a great option for filing your federal income taxes online. When filing your taxes, you will also likely need to file a state return. Almost every company that offers a free federal tax service also offers a state filing option for a small fee. Turbotax charges $27.95 per state return filed along with your free federal income tax return. For Home & Business, Deluxe, Premier, and Basic you will pay $36.95 per state. This fee is comparable to other major free federal filing websites. If you live in Alaska, Nevada, South Dakota, Texas, Washington, or Wyoming you don’t have to worry about paying any personal income tax to the state so these programs are entirely free for you.
What do you plan to do with your tax return this year? Healthy Financial Habits wants to know. We have created a poll located at the bottom right of this page. Here you are able to vote to let us know how you are going to spend your money and also view the poll results.
Author: Carla Kessler
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The cost for preparing, printing and filing state returns with TaxACT are dependent on the federal preparation product a customer chooses.
If a customer files with the Online Free Federal Edition their state return will cost $14.95 (includes 1 state e-file). If they file with TaxACT Online Deluxe their state return will cost $8, which also includes 1 state e-file. Online Deluxe and State are included with the TaxACT Online Ultimate Bundle, which costs $17.95
State preparation and filing prices are a little different with our desktop products. Adding a state return to our Free Federal and Deluxe ($12.95) download products costs $14.95 with an additional $7.95 for e-filing.
The Ultimate Bundle download ($19.95) includes both federal and state tax return preparation and one free federal e-file. State e-filing is an additional $7.95.