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

28 March 2019

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.

Read Also:

Ariana Smith

I enjoy writing and I write quality guest posts on topics of my interest and passion. I have been doing this since my college days. My special interests are in health, fitness, food and following the latest trends in these areas. I am an editor at Content Rally.

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How to Start Your Career as a Financial Advisor?

Over the next 30 years, the baby boomers are expected to transfer approximately 30 trillion dollars of wealth to the millennial. Financial advisors are at an all-time advantageous position because they will help manage that money. The Bureau of Labor Statistics projects a 27% job growth for advisors between 2012 and 2022. The average job is suggested to be about $99,920. However, this career is not an easy one. While there are a lot of career openings for finance sector,It is constantly changing. If you are interested in the profession, here are a few tips on the educational requirements, salary packages and the certification that will help you understand what you will need to be a successful financial advisor or start a financial planning career. Who is a financial advisor? Just as the name suggests, financial advisors provide advice to clients on how they can handle their money better. 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The financial management course will focus on financial planning, investments and risk management. While you are studying, make sure that you take advantage of the support resources offered by most universities. Resources such as resume writing guidance for professional CV writing service, job assistance, getting interview leads and writing cover letters will be beneficial when you are building your career. You may also want to develop your marketing skills as you study since you will be tasked with the responsibility to connect with clients through marketing your advisory services in networking avenues, workshops and seminars. It is critical for you to start learning the different marketing strategies early. They will be helpful when you are looking for clients to represent. Depending on the country and the state you reside, you will be needed to get licenses and certifications. The license you get will depend on the types of assets you want to handle. 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6 Tips on How to Pay Off Your Tax Debt

For the tax year 2015, the IRS reported that taxpayers filed 150.5 million individual income tax returns, which is an increase of 1.3 percent compared to the previous year. This yielded $10.4 trillion income for the said tax year and also a 4.5 percent increase from 2014. Here’s the thing: not everyone is able to file and pay taxes for the income earned. If you happen to be one of them, then you need to read this post to find out how you can pay off your tax debt and prevent penalties, possible jail time, and garnishment of your assets: 1. Know how much you owe : You can’t just pay any amount just to “lower” your tax debt. Paying the amount stated on the letter from IRS doesn’t automatically mean it reflects the actual tax debt since you could be eligible for a tax credit (or IRS could be wrong too). Therefore, find out first how much you actually owe for each tax year. This will give you a summary of your tax situation, thereby making it easier for you and your tax debt lawyers to come up with strategies that lower your debt. You can also use a tax calculator online to give you an idea of your total tax debt. 2. Consolidate the tax debt with your credit card : First things first, it is not advisable to pay off one debt using another debt. If you owe something especially taxes, then you might want to break this rule. IRS accepts all major credit cards like MasterCard or Visa to pay off your tax debt. Simply go to the payment page of the IRS to make a payment. Keep in mind that IRS doesn’t charge a fee for doing such transaction, although processing companies who process the payment charge up to as much as 2.35 percent. Nevertheless, make sure to pay your credit card in time. 3. Try refinancing your home : Why not? Believe it or not, the IRS could recommend re-financing depending on the situation. If you happen to have equity such as a house and you can afford it, then you can use your assets to pay off your existing tax debt. The good thing about this movie is that mortgage rates are typically lower compared to the rate charged by credit card companies. Also, you can take away home mortgage interest on your income tax return – and how can you say no to that? 4. Apply for Short-Term Extension to Pay : This is only applicable if you can pay your tax debt in 120 days or less. The good thing about this arrangement is that there is no set-up fee and you can apply either online by filling out the Online Payment Agreement application or by phone. Penalties and interest fees are likewise lower, so make sure you pay within the given period granted to you. 5. Enter into an installment agreement : Ideally, you would be able to pay off your tax debt at once. On the other hand, there are instances when you need a little more time to pay it off. In that case, consider entering into an installment agreement with the IRS. The good thing about installment agreement is that you can apply either online or by mail. You don’t have to worry about reminders and missed payments, especially if you sign up for the monthly payment plan. You can apply for the installment agreement if you owe $50,000 or less, which already includes combined individual income tax, interest, and penalties. When you apply for this, make sure that you filed all of your returns in order to qualify for this agreement. How does installment agreement work? A direct debit payment plan is highly recommended because of the lower cost, hassle-free payment, and the cost for a set-up fee is more affordable compared to other payment plans. What if you have more than $50,000 tax debt? In that case, the next tip would be your most feasible option. 6. Consider an Officer in Compromise : Also known as OIC, this strategy could also be helpful if you want to pay off your tax debt. Unlike the Installment Agreement, Officer in Compromise is more applicable for a larger amount of tax debt. How does this work? OIC will allow you to settle your tax debt for less than the full amount you actually owe. Filing of an income tax return and payment requirements must also be updated. Nonetheless, there are several factors IRS looks into before they agree to this kind of arrangement. This includes, but not limited to: Income Expenses Asset equity Ability to pay Aside from this, it is IRS who will determine whether you are qualified for OIC or not. If they see that they won’t be able to collect the entire amount within a reasonable time, then you could be qualified. Check out their website to determine whether you can be qualified for this or not. At the end of the day, it is important that you file and pay on time to avoid hassle come due date. In case there was a delay, take note of these tips and prevent the government from taking what was yours. Read Also : Eight Essential Tips For Getting Out Of Debt Are Debt Consolidation Loans Recommended For Credit Card Consolidation Dealing With A Debt Relief Officer For A Better Assistance

How To Use An SBA Loan For Business Purchase

Financing is crucial for prospective small business owners. Personal loans that are made for companies usually have high-interest rates. Small businesses acquire SBA loans from banks as well as credit unions. Such an economic government financing approach ensures loans to an amount of $5 million for small company owners. Small enterprises may get loans with government guarantees. Such kinds of bank loans are, therefore, SBA-approved, and lenders get applications. Moreover, the bank receives payments. SBA will cover losses up to 85% if the borrower fails. The safety net it provides reduces small company owners' risk, promoting low-interest lending. For any buyer, defaulting is awful, too. The buyer community at Beacon provides educational materials, deal-assessing tools, and industry experts and entrepreneurs to assist consumers in making wise purchases. What Is An SBA Loan? The U.S. Administration of Small Businesses supports the SBA loan. It stands for small business administration loans that allow multiple financial enterprises to offer business loans that have higher flexibility than traditional loans. Since the government backs these loans, banks are encouraged to lend financial help to enterprises that might not be able to function otherwise. Lenders get the opportunity to offer business loans with fewer down payments and lower stringent credit standards. The repayment terms on these loans are usually longer and might extend up to 10-25 years in various circumstances. In the later section of the article, let’s discuss the eligibility criteria for an SBA loan. Can I Acquire A Company With An SBA Loan? The answer is yes! Acquisition loans from the SBA may be utilized for working capital, debt refinancing, real estate purchases, equipment acquisitions, and company purchases, including franchises. How Can I Get This Loan? Four easy stages comprise the application procedure of SBA. Look for a lender Select your loan type. Prepare documents Send your application. Guaranteed Loan Program For SBA The 7(a) secured loan program is the primary one offered by the SBA. However, it does have additional lending programs. Monthly payments are required for loans up to $25,000 to $5,000,000. Here is a brief idea of the maturity rates: 25 years in the realty sector 10 years dedicated to gear Inventory or working capital loan for 10 years Several simplified and guaranteed SBA 7(a) loans are available to small company entrepreneurs who need to finance quickly. Preferred Lender Program or PLP– A limited collection of loan lenders may independently approve SBA loans. They function like 7(a) guaranteed loans and are confirmed by the SBA within 24 hours of the request. BA Express Loan Program – Like PLP, SBA Express Loan Program lenders have the power of unilateral credit approval. However, SBA Express loans are only guaranteed up to almost 50%. Our service makes it simpler and quicker for every lender to lend $350,000 or less. Typically, the SBA guarantees these loans not more than 24 hours after the request is raised. SBA Veterans Benefit— The SBA Express Loan generally waives a 0.52% guaranty fee for small businesses both operated and owned by veterans. But that’s not all! They might also belong to National Guard members, their spouses, widowed spouses of service members, active-duty military in TAP, reservists, or veterans who got killed during service, or service-connected disabilities. SBA Collateral Necessities The SBA requires borrowers to pledge all corporate assets as security, and liens made for personal assets might be needed to secure the loan. This usually involves residential real estate liens. If adequate collateral is unavailable, the borrower's loan qualifying will not be affected. This is one of the reasons why you may be denied. Learn more about why was my SBA loan declined. SBA Guarantor Needs One guarantor is required for every SBA loan. Individuals with 20% or greater firm ownership must furnish an infinite guarantee. One owner must furnish a complete, unconditional assurance if no one owns 20% of the firm or more than that. If the stakeholder's spouse owns either 20% or more of the firm, both partners must furnish a complete, unconditional guarantee. How Long Is SBA Loan Approval And Closing? Since a large amount of paperwork is involved, the SBA loan might take 60 to even 90 days to finalize. You may use the Express Loan to have the loan authorized and closed swiftly. SBA promises that this loan will be authorized or denied within a time period of 36 hours. However, paperwork and lender timelines might take 30–60 days. Related: How A Business Loan Helps Business People In 2023 SBA Loan Drawbacks Many small company entrepreneurs use the SBA for funding, but it has drawbacks. Businesses in these industries cannot borrow from SBA. Investment, gambling, speculation, loan packaging, lending, and multi-sales distribution Real estate investment companies Rare artifact dealers Sales pyramids Religious, charitable, or non-profit organizations. SBA doesn't allow complicated earn-outs. SBA loans restrict owners to transfer to one year after closing. Are There Alternatives To SBA 7(a) Loans For Company Acquisition? A standard small company or personal loan is available, but an SBA 7(a) loan is government-backed and given by banks and credit unions. Rather than lending, the SBA insures these loans against default. Apart from SBA 7 (A) Loans, small businesses can also opt for the following alternatives: SBA Express Loan: The express loan is usually used for working and equipment capital. They are ideal in situations where a small business needs working capital, money for equipment positioning, refinancing, etc, and are generally for a longer period of time. SBA 504 Loans: The 504 loans are generally used for commercial real estate financing and even for purchasing existing buildings. These are usually of two types- one that you get directly from the lender and another from a CDC or a Certified Development Company. The Bottom Line: Is SBA 7(A) Loan Worth Applying For? For budding enterprises that want money to establish their firm, SBA loans are absolutely worth it. This article has successfully covered all the important information related to the loan application and its eligibility. So, thank you for reading and if there’s something you would like to add, simply comment below. Read Also: How To Secure Your Dream Home With A VA Loan Ways To Apply For A Personal Loan & The Reasons To Opt For This Loan. Steps For Getting The Best Car Loan

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