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Home » Business And Finance Articles » Do Your Own Taxes With Online Software

Do Your Own Taxes with Online Software

Taxes are so complicated that it has become a year-round job just to keep up. Everything you do throughout the year has an impact on your taxes. Did you get married? Did you buy/sell a home? Did you have children? Did you change jobs? Did you put any money into a retirement account? Did you donate to charity? And on...and on...and on.

Thousands and thousands of laws for Federal filing alone, but in fact State tax codes are often even more cumbersome, and everyone wants to get your business. Tax preparation has become a multi-billion dollar a year business in this country. You have to get all the paperwork together and spend several hours of your time in an office just to pay someone else $100 to $300.

Luckily, technology has caught on and can save you both time and money. New online and downloadable software has become so advanced that anyone can use it. Yes, ANYONE.

BENEFITS OF DO IT YOURSELF TAX SOFTWARE

• Fast, easy and accurate

• Do it from the comfort of your own home

• Offers many different options

• Very user friendly

• Costs 50% to 90% less than going to a local preparer

• Most are guaranteed

HOW TO USE TAX SOFTWARE

• Gather up all of the paperwork you would normally bring to a professional

o W-2 (from employer)

o 1099 (shows interest)

o Receipts for charitable contributions

o Doctors receipts

o Etc.

• Find a reputable company

• Purchase the software (you will have the option of doing it online or downloading software)

• Follow the easy step-by-step instructions

• Mail-in or e-file your forms

You are probably thinking it's too good to be true, but it's not. It's actually quit brilliant. The biggest expense for tax preparation companies is overhead (office, office supplies, desks, computers, etc.) and labor. By giving you the power to do your own taxes these companies have virtually cut their costs up to 80% and are passing the savings on to you. Go to http://www.moneytopics101.com/taxes.html to learn more.

And here is another random article you might be interested in...

Don't Sell Your House--Ever!

Keeping your existing house when you buy a new one could be THE most profitable financial decision you could make. Consider the following:

1. Second stream of income: When you move to another place and keep your current house as a rental, this gives you an extra stream of income.

2. Pay less tax: Your rental property produces business income. When you have a business, you are entitled to tax write-offs. This could save you a lot of money that you would normally pay to CCRA (Revenue Canada).

3. Fast wealth: Tenants will pay off your mortgage in a rental property. Your net-worth will grow without you having to save out of your own income. When you have one or more tenants there is a team effort in building your wealth, fast!

4. Bargain priced: You will never again be able to buy the same type of property for the amount you paid for it originally. The value of all the other houses have gone up along with yours. You already own what an investor would consider a bargain in the current market.

5. High rate of return: The rent you can charge for your house is based on the current market. Rents have gone up but the cost of your house is still what you originally paid for it. You are getting a higher return on investment. In the current market you would have to spend a lot more to get the same rental income.

6. Guaranteed income: If you are willing to make some small changes to your house so it meets the standards required for disabled people, you will have a long list of potential tenants waiting for you. In many cases, some government agency will be paying their rent. You will get a good, stable, low-maintenance tenant. You will also be helping someone in need. If you need money for the renovations, you can re-finance as much as 90% to 100% of the market value of your house. Government grants may also be available.

7. Increased tax write-offs: In most cases, you can write off the interest paid on the mortgage of a rental property. If you keep the mortgage as high as possible, you maximize the tax write-offs.

8. Pay off your own home faster: Keep the mortgage on the rental property as high as possible by re-financing to the max as the value goes up. Use that equity to pay off the home you live in, faster.

9. Tax-free retirement income: After your house is paid off quickly by using the equity in the rental property, you may be able to use the refinanced cash as a tax-free retirement income. Borrowed money may or may not be taxable. Check with your accountant.

10. Gain freedom from the slavery of a J.O.B.: It takes far less time to maintain rental properties than the amount of time you would spend in a job. If you build up your portfolio of rental properties to 5 or 10 and pay them off (or keep refinancing), you will have as much or more income than your present job. You can be your own boss, work only a few hours, spend time with your family, and really enjoy your life.

These strategies will not work for everyone. Before you implement your plans, check with an accountant, lawyer, mortgage broker or other professional. You may need to work with someone. Use your children, parents, brothers, sisters, good friends as a co-signer or co-investor. Grow wealthy together, with the people you love.

To qualify for the lowest mortgage rate in Canada, go to http://www.mortgage-rate-canada.com and click on Canadian "Mortgage Calculators". Check out the "Pre-Approvals" and "Credit Problems" pages to get the banker's perspective on your credit profile.

For ideas on how to set up a reliable monthly income from rental properties when you have very little time or money go to: http://www.netman-ecommerce-guru.com/rental-strategies

Warm Regards,

Neeraj Varma