Once again, it is time to dig deep for all of those receipts and brace yourself for another surprising tax bill that you are about to receive. Preparing your 2009 federal and state income taxes can be a difficult task if you are still filing your taxes using the traditional paper form method. There is an easier way to do your taxes this year and every year. We are talking about electronic tax preparation and just about anybody with basic computer knowledge can do it.


While filing your taxes online, you may have become confused by all of the tax filing software out there that claims to give you the best possible price on preparing your taxes using their site. There are a lot of good tax preparation sites out there that will get the job done at a reasonable price. Getting a reasonable price on your tax service is all dependent on how complicated your tax situation is.

Many websites offer free federal filing for individuals with simple tax situations. These free filing programs are usually more than adequate for a simple filer such as an individual who works and has no investments, credits, or deductions that they want to claim. Free programs are in fact free for federal filing, however, you will have to pay a fee anywhere from $10 up to $30 if you would like to electronically file your state returns.

Besides the free packages, many e filing websites offer other all inclusive packages that range in price from $14.95 up to $100.00. Once again, what is considered a “cheap” package will vary according to your individual tax needs.

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: Allen Dukes