WalletRehab - Ways to save money

As Ben Franklin said, “In this world nothing is certain but death and taxes. ” Sure, you can’t avoid paying taxes, but you should do your best to avoid paying to file them. Having to pay for the right to pay taxes is simply Un-American!! Of course, you can mail your tax return in for free. However, I’ve always liked doing it from the comfort of my home. Knowing that I can send my return in that same night, without having to get out of my pajamas is a HUGE incentive.

Why should I file on-line?

You should file on-line for a range of reasons. To stop procrastination is my favorite one. But the main two reasons are:

You will receive your refund faster by filing on-line.

The best part about filing your tax return is your tax refund. Chances are you have overpaid your taxes through the year. The amount of taxes that were deducted from your paycheck during the year are likely greater than you owe. Given that the government owes you money, don’t you want that money back as quickly as possible? Filing on-line is bar-none the fastest way to receive a refund. Your tax return information is sent directly to the IRS for them to process. You can even submit your bank account number, and they’ll direct deposit it.

What’s not to like?

Track your filing status.

Whenever I file any important paperwork, I tend to get paranoid. Did I send it on time? Did I make any mistakes? Did I affix enough stamps? Sending my return on-line takes care of these little worries of mine. Once your refund is sent, you receive a tracking number. Through the IRS website, you can track the status of your refund, ensuring that it’s been received and processed.

Instead of worrying, I get to think about what to do with my refund.

File your Federal return for free.

So you want to file on-line, like all the cool kids. Other people will probably pay for the privilege, but I’ve worked to gather some ways to save money on the actual filing cost.

You can go directly to the IRS to file electronically for free via the website. That only requirement is that you have to have an adjusted gross income of less than$52,000. In other words, most of us can file for free via the IRS website.

Free File allows taxpayers with an Adjusted Gross Income (AGI) of $52,000 or less in 2006 to e-file their federal tax returns for free. That means 70 percent of all taxpayers – 95 million taxpayers – can take advantage of the Free File program.

Our buddy The Dough Saver tipped us off to the fact that TaxActOnline.com will file your taxes electronically for free. The website will from time to time ask you to upgrade to a “deluxe filing.” Just click on “No, thanks” when prompted.

You can also file your Federal return on-line for free via TurboTax.

Filing your State income tax return for free.

MyMoneyBlog was nice enough to list all of the free options for State Income tax returns for free.

Download Free Tax Preparation Software.

For those of us who have simple taxes, using a software program ensures that we don’t make any silly mistakes. Here are two offers for free tax software. These companies make their money through e-filing fees. Instead, when finished with all of the surveys and forms, the program will allow you to print a copy of your return. You can mail these forms in, OR, use the above methods to e-file your own return for free.

I received this link for free for being a TaxCut customer last year. I’m sure this link will work for any of you wishing to get a free copy of this software.

Intuit is offering a free copy of TurboTax.  You can e-file for free too!