What Is the Best Tax Software to Be Using in 2019?

Published on: 28 March 2019 Last Updated on: 04 November 2024

If you fail to file your taxes correctly, the IRS can fine you a penalty up to 20% of the amount you owe.

Taxes are a complete nightmare for many people especially if you can’t pay them. And the last thing you want to deal with is owing even more money to the government.

That’s why the emergence of tax software has helped so many people. It helps you make sense of the confusing terminology, perform calculations, and break the process down into easy steps.

But what is the best tax software and how does it help simplify everything? This article covers everything you need to know.

The Criteria for Best Tax Software:

Everyone is different and the tax software available now tends to be tailored to different audiences with bank products and other solutions available.

For example, a family of four with a house and one income earner will have a fairly straightforward process. But what about someone who is self-employed or a small business owner? In these cases, some companies offer tiered pricing models that can quickly become expensive.

When asking questions like “Why would anyone use a bank product?” or “Is this service right for me?” it’s important to consider the following.

Ease of Use:

There’s no point paying for a system that is just as confusing as the tax forms themselves. Check out reviews from other people to see what their experiences with the company were. Or watch a ‘how to’ video for a preview of the software.

Are Your Taxes Complicated:

Between deductibles, donations, and multiple sources of income, taxes can get complex very quickly. If you’re unsure what you qualify for and what options are available to you then tax software may be the way to go.

Look at State Tax Prices:

Some tax software companies include state tax in their services free of charge. Others ask for a fee and class it as an additional service. Be sure to look into the costs behind each one to be sure.

With that said, here are the best online tax filing options out there.

TurboTax:

Known for its simplicity and ease of use, TurboTax has many features and designs to help you file without a headache.

The use a simple step by step process that puts questions in laymen’s terms and does the hard work and calculations for you. They even offer a W-2 scanner where upload a photo of your form and it automatically sorts the information on your tax forms.

They have a free option for getting your taxes ready to file. But can charge past $100 if you want more premium services like a tax specialist to talk to.

Tax Act:

Similar to TurboTax, TaxAct offers a sliding scale of costs for users depending on the level of service they want.

Their layout makes it easy to input data and offers free state tax returns for simple forms. If you’re a homeowner or business owner however, then you will have to pay a fee for state taxes.

If you are unhappy with the service you’ve received from other tax software companies, TaxAct makes it easy to import your old information over to them.

H&R Block:

Known for their stand-out customer support, H&R Block takes the uncertainty out of the equation with tax specialists on call and online.

It has a similar model and pricing structure to the previous companies but also offers up to $3000 of interest-free loans to anyone entitled to federal tax refunds.

Shop Around:

Knowing what the best tax software is for you takes time and research.

This list helped narrow things down but you should still look into each company in more detail to see what will work best for you.

Check out our other finance articles for more tips and advice.

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Investing in Precious Metals

Add precious metals to your investment portfolio for diversification and security, but make sure to select wisely as each type of metal and investment vehicle has its own set of benefits, risks, and drawbacks. Protection From Economic Uncertainty Gold and silver have long been seen as symbols of wealth and currency, providing safe investments during times of economic instability. Furthermore, these precious metals have numerous industrial uses including jewelry production and electronics manufacturing that keeps demand for them at an all-time high. This demand ensures their prices will always remain elevated. Gold and silver investments are also an excellent way to diversify your portfolio, according to many financial advisors. Diversifying includes stocks, bonds, mutual funds, and exchange-traded funds as an overall approach, but adding gold or silver may further lower risk by spreading out your investments across many asset classes. There are various methods of investing in these types of assets, from purchasing physical bullion (gold, silver and platinum coins and bars) to investing in mining companies that produce these products. You can click here to learn more about investing in mining companies. Both options provide tangible investments but some may incur higher storage and insurance costs. Furthermore, physical bullion is subject to higher capital gains tax rates when sold compared with other investments. Alternative purchasing options exist through rare earth elements royalty and streaming companies. These firms own the right to receive set quantities of these assets over time for a fee, offering diversification without incurring additional risks in owning physical bullion. An alternative approach to precious metal investment is investing through your 401(k) or another retirement account, providing diversification with tax-deferred savings benefits. However, before making any decisions related to your retirement plan it is advisable to seek guidance from an independent advisor. Others choose to partner with a well-known company like Goldco for their investments. It is important to do research on any company or advisor you are considering working with. Diversification Diversifying your portfolio is one of the main tenets of investing, as this helps reduce risk when stock markets crash or unexpected market events take place. One way of diversifying is adding precious metals as their price usually follows different market trends from stocks and bonds. You can click the link: https://www.investor.gov/what-diversification for more information. Investors can purchase physical rare earth elements such as gold, silver and palladium or invest in investment products derived from these assets - including mining stocks, streaming companies or royalty companies that generate revenue through sales of rare earth elements, ETFs and mutual funds that specialize in these types of investments, and futures contracts. All these options provide investors with the diversification benefits they seek, yet each presents unique risks and opportunities. Gold bullion, for instance, is one of the direct forms of investments, but requires significant storage space to hold. Furthermore, its initial costs may make entry more challenging. Precious metals-based investment products offer lower barriers to entry, but can still carry risks, including those related to mining companies' share prices falling due to cost overruns, mismanagement or financial issues. Gold and silver tend to increase in value during periods of economic unease as they serve as safe havens. Furthermore, their widespread applications such as jewellery making, electronics production and batteries make them likely safe bets as the world continues its advancement and progresses further. Investors can also use precious metals as a hedge against inflation and to preserve their purchasing power over time. As interest rates and printing of money by the Federal Reserve increase and cause the dollar's value to decline, the price of commodities such as gold and silver are impacted. Exchange Rates Precious metals provide an alternative form of money that's resistant to inflation and economic uncertainty. Due to their intrinsic value and the "safe haven" reputation they enjoy as investments, physical bullion may make for an excellent addition to any portfolio - though investors should carefully consider their financial situation, strategy, and long-term goals before making decisions regarding these types of investments. Precious metals have become an increasingly popular investment choice among investors looking to protect their wealth against economic instability and inflation. Precious metals provide investors with an effective, stable way of diversifying their wealth as they are less volatile than stocks or other investments which may experience sudden drops. Furthermore, precious metals provide tangible assets which can easily be converted to cash. Investing in precious metals is an excellent way to safeguard against inflation and other economic risks; however, it is wise to conduct thorough market research before making decisions and consulting an expert about which options are suitable for your particular situation. Security Even though precious metals can be bought through traditional brokerage accounts, most investors prefer investing directly in physical precious metals by purchasing and storing physical precious metals themselves. While this method may be more costly than trading stocks or bond ETFs or mutual funds, having physical precious metals in your hands provides instantaneous access when economic uncertainty strikes - an invaluable asset during times of economic uncertainty. Physical precious metal investments offer another distinct advantage: They're private assets. You are the only one who knows exactly the details of your portfolio, which makes it more secure than many modern investments. This feature is especially advantageous for families that wish to shield their wealth from outside financial consultants or government agencies. Each metal has different economic sensitivities, technical properties and uses. Gold is often used for ornamental purposes in jewelry design while silver has multiple industrial applications including electrical appliances, medical applications and batteries. Meanwhile, palladium shares many of the characteristics found in platinum but has even greater industrial uses as it's used in automotive catalytic converters, ceramic capacitors in chargeable electronics systems, groundwater treatment processes and manufacturing processes. Though investing in precious metals may provide many advantages, it is also crucial to be aware of any associated risks. Diversifying your portfolio and finding a dependable broker or dealer is crucial when purchasing and selling precious metals. Read Also: Is Investment Bankers/Brokers/Service A Good Career Path In 2021? 5 Reasons Why Bitcoins Are Considered Reliable Investments 5 New Assets To Diversify Your Investments In 2021

7 Reasons Why Teenagers Pay Extra For Car Insurance

Car insurance for teenagers is more expensive than experienced drivers. Teenagers, who are at a very young and vulnerable stage of life, often lack any formal driving experience. They learn the skills of driving in this age and polish it with practice. The motor vehicle associations understand the susceptibility of their age and therefore the cost of car insurance for teenagers is higher. In order to understand this concept in detail, we have laid down 7 reasons that “why teenagers pay extra for car insurance”: No Proven Track Record of Driving The insurance companies consider the driving history of the applicant before issuing insurance premiums. In the case of teenagers, there is no proven track record of driving. Since they are at the beginner’s stage of learning, there is no evidence to support their expertise on the road. The risk factor stays high in this case. In general, the people who have proven driving track record without any mention of traffic violations and accidents in their names can avail significant discounts on their car insurance policies. The insurance companies need some statistical proof to make a judgment about the driving skills of applicants- which is not possible in the case of teenagers. Therefore, they cannot assume whether the teenage driver is a safe or reckless driver. In order to cover their risk, they raise the cost of car insurance for teenagers to ensure some safety measures. However, at the age of 19, the insurance plan becomes affordable as you already have 1-2 years driving experience by this time. You can get car insurance here for 19 years olds. Lack of Experience It takes time in learning a skill and achieving expertise in it. Learning to drive certainly takes more time and effort as we face different situations every day on the road. The young drivers need to dedicate a lot of practice hours to polish their skills before they can take their own vehicle independently on the road. The amount of time spent behind the wheel is a considerable factor in enhancing the driving abilities of young drivers. In the case of teenagers, their lack of experience can put them to test while facing real-life driving situations. Their reaction time may be slower than an experienced driver which is much needed when you are in actual driving practice. It is often seen that the young drivers get into a panic very easily when they face unusual situations on the roads. There are research studies to support the fact that most of the accidents that involve youngsters are due to their delay in reaction to the situations that prevail. Emotional Distraction Young people often get stuck with emotional issues. Their vulnerable age often brings out the “rebellious” attitude which may result in anger, sadness, extreme happiness, excitement, overreaction, anxiety, etc. They have very less understanding of dealing with their own emotions which may cause serious troubles while driving. For example- despite many public advertisements, youngsters use their mobile phones while driving. The overconfidence can lead to the accident-prone situation very easily. Youngsters often pool their vehicles and go for diving expeditions. Mutual talking and discussions while driving can distract their attention from the road. It is also common for youngsters to appreciate unusual sights on the road and get diverted from their driving spree. Insurance companies take these facts into account and use substantial proofs to put forth their risk level before issuing car insurance to teenagers. Increased Tendency Towards Speed and Racing There is no denial of the fact that teenagers love formula races and speed games. When they sit behind the steering, they get tempted to race with the cars on their track. Sometimes they have their own bunch of friends racing while driving. The scientific studies have reported that teenagers are easily aggravated by smoking, drugs and alcoholic tendencies. Under the influence of these factors, they may be instigated to adopt risky behaviors while driving. The understanding of the risks and their implications can be attained only with age and experience. The insurance companies state that the lower rates of premiums for the experienced drivers are supported by the statistics that prove that they are less prone to accidents as compared to teenage drivers. The Risk of the Insurance Companies The teenage drivers are at a higher state of financial risks for the insurance companies. The higher the probability of being at risk of accidents raises the probability of higher expenditure of the insurance companies. Therefore, in an attempt to cover the risks associated with the young drivers, they raise the cost of the policy. The Statistical Proofs We have already discussed various factors that may cause teenagers to become riskier while driving. It should be mentioned that our studies are based on statistical findings from various reports. These reports emphasize the high probability of teenage drivers being involved in road accidents. The data has been collected by the years of research that bring the car insurance firms at a higher edge of risk. The Make and Model of the Vehicle We often get to hear that the teenagers are gifted their “favorite vehicle” on their birthday or any other occasions. Although this practice is popular in rich and affluent families, these days even the middle-class segment has roped into the trend. Thanks to the easy loaning facilities! However, parents often forget about the risk associated with allowing teenagers to drive new and expensive cars with high-speed parameters. The insurance companies charge more from their clients who want to purchase insurance of a premium car for their teenager ward. The reason is clearly stated- higher speed parameters of the vehicle are directly proportional to the high financial risk factor of insurance companies. Conclusion Teenagers pay extra for car insurance due to the high amount of risk associated with their age and the levels of maturity. There are facts to support the rash driving incidents leading to fatal accidents in many cases that involve teenagers. Therefore, the higher rates of insurance are just a precautionary measure by the insurance companies. They intend to ensure that the applicant, as well as the company, must be fully prepared to deal with the possible risky outcomes due to driving errors. Higher is the risk of the insurance company, higher is the cost of the premium. Read Also : Tips For Reducing Car Insurance Costs Tips To Lower Your Insurance Costs

Smart Ways to Invest in Gold

Gold has been in existence for many years and its market has been quite stable. Unlike other assets, it is not volatile and doesn’t fluctuate. It can also give huge returns when held for a long time. In this article, we will explore the benefits and methods of investing in yellow metal. Benefits of Investing in Gold The benefits of investing in gold are: 1. It Holds Value Unlike paper assets, gold is an age-long method of storing wealth. It maintains its value for a longer period. It is the complete physical qualities of Gold that make it highly esteemed. For instance, it is resistant to corrosion. Goldsmiths can work on the metal and turn it into different articles. 2. Serves as a Hedge Against Economic Instability Gold is well known to protect wealth against inflation. During periods of economic downturns, currencies might be devalued but with gold, things are different. Its value will never become zero. In the past, we saw stocks rise and fall, but gold prices soared because people buy more gold when they anticipate economic instability. 3. Protects Against Political Instability When there is a political crisis, governments place stringent measures to increase revenue. For example, they may stop people from accessing the money in their accounts. But if you own physical gold, you can always collect it and move to another country. How to Invest in Gold The following are smart ways to invest in gold: 1. Physical Bars and Coins Unlike other commodities, investors can easily access gold in the form of bars and coins. They can buy them from brokerage firms, banks, or online bullion dealers. Bullion bars come in a brick of 400 ounces or a quarter of an ounce wafer. When buying coins, you need to be sure of what you are purchasing. There are regular coins and vintage numismatic commodities that are priced based on how much gold they contain. However, if you intend to sell your assets quickly, stick to coins that are in circulation. These include the Canadian Maple Leaf, South African Krugerrand, and the American Eagle. Another important point to note when buying physical bullion is the dealer. Whether you want to buy from an online dealer or a physical store, ensure the dealer is reliable. Also, make sure you get insurance for your bullion because you need to keep them safe. You can read this article to learn how to secure your bullion. Additionally, you can invest in jewelry. Many people enjoy wearing gold jewelry, so they can show off their wealth to friends and onlookers. These pieces of jewelry could be combined with silver, platinum, or precious gems to improve their aesthetics, making them more valuable. In some families, pieces of jewelry are passed down from one generation to another. As a result, the sentiment that family members attach to the pieces increases down the line even beyond the real value of the jewelry. If you are looking to invest in gold jewelry, make sure you know the purity level of the commodity. For instance, if you are paying for 24 karats, be sure that the dealer is not selling 18 karats pieces to you. Many insurance policies cover jewelry. So, make sure to insure your precious pieces in case they go missing. 2. Gold Funds If you do not want to go through the stress of owning physical bullion, you can invest in gold funds. These include ETFs (exchange-traded funds) and mutual funds. These funds follow the price movement of the metal and are traded on the Stock Exchange like stock. Some ETFs offer shares that are equivalent to a tenth of an ounce of gold. So, if the yellow metal trades at $1200 per ounce, each share will be approximately $120. Some ETFs invest in physical precious metals on behalf of investors, giving them exposure to gold’s price movements. Others invest in both bullion and shares of companies involved in mining and refining precious metals. Usually, stocks fluctuate faster than gold’s spot price. Also, companies may be affected by political, economic, and environmental problems that are not related to the price of bullion. However, these should not discourage you from investing in gold funds. ETFs have the potential to appreciate than when you invest in physical bullion. You can check out https://www.thebalance.com/ to get more information about ETFs. 3. Stocks of Gold Mining Companies Investors who cannot access physical precious metals can invest in stocks of gold mining companies. However, you should know that these stocks do not move with the prices of gold. This is because the success or failure of a mining company depends on its management. This affects how the company utilizes funds and makes profits. Therefore, if the company is unsuccessful, you can’t lay claim on the metal. Which Gold Investment Method is the Best for Beginners? There is no best way to hold gold because each method has pros and cons. However, you may want to consider investing in physical gold through a self-directed individual retirement account or a precious metal IRA. This gives you a tax advantage because you won’t pay income tax on your assets until you want to withdraw. Usually, distributions are allowed during retirement or as soon as you attain fifty-nine and a half years. Precious metal IRAs are good for long-term holdings, thereby, increasing the value of your investment. For instance, if you purchased bullion at $1000 per ounce before you retire, the price may have tripled. But you must make sure the IRA custodian you choose is reliable. Reading reviews like the USAGold review will help you make the right choice when selecting a company to invest with. Gold investment is purely based on speculation, which is not outrightly bad. But you do not need to fill up your portfolio with only one type of asset. It is advisable to have about 4 to 5 percent gold investment in your portfolio to balance the other classes of assets you may already own such as stocks, bonds, and mutual funds. Read Also: Mutual Funds Vs Stocks: Which One Is The Best Option For You How To Start Your Investor Journey: 5 Credible Options To Explore Which Type Of Portfolio Might A Young Investor Who Is Not Afraid Of Risk Choose? What Investors Should Know about Investment in Gold and Silver Assets

What Is the Best Tax Software to Be Using in 2019?