"Free" IRS Tax Software

You may have heard the good news: the IRS has partnered with 20 tax software companies to provide software and e-filing services for "free," if your income is below $57,000 (generally).

Hmmmm, my skeptical mind wonders (I was an auditor for 4 years so I'm a well-trained skeptic) . . . 
     Sounds too good to be true? 
     The government offering something to you for free? 
     What's in it for them? 
     What's the catch?

Well, here the REAL story:
Determining your Income is usually VERY easy - W-2's, 1099's and mutual fund/brokerage statements show us (and the IRS) how much money came IN during the year.  It takes virtually NO knowledge of the tax law to report these amounts on your tax return - and pay taxes on these amounts, less the "standard" deductions and exemptions which are built into the tax forms and software.  SO, if it's so easy to determine your income, where are you likely to go WRONG?

RIGHT - Which deductions, exemptions and credits are you entitled to?  The tax software might make some suggestions, but it's what's NOT known that will leave you paying more taxes than you have to.  Tax attorneys and CPAs with master's degrees study and practice the tax law FULL-TIME, year-'round.  Why?  Because it's complicated!  There are many activities which affect the amount you pay in taxes, and it's the job of CPAs to help you keep the most amount of your money, not only by preparing your tax return, but by consulting with you periodically throughout the year.

My (admittedly self-serving) conclusion:  Forget about using "free" things like tax software from the government.  It really is too good to be true and you'll end up giving the government more of your money in taxes than if you had used an experienced, qualified CPA to prepare your tax return and to advise you on choices you can make to keep more of your money - at tax time and throughout the year.

Contact me:
kfolberg@mynetcpa.com
(262) 421-1170 Office
(877) 277-7151 Fax