money0405

Reasons You Should Do Your Own Taxes

Tax season is upon us, and if recent trends are any indication, almost half --approximately 45 percent -- of all U.S. taxpayers will file their own returns this year. Among the most popular excuses for those who choose to pay a preparer instead: it's too hard, I don't have the time, and it will be cheaper in the long run to just hire someone to do it.

None of these are true, says Bill White, a certified public accountant and president of Online-Taxes.com, a company that has offered IRS-approved tax preparation software since 1999. In fact, doing your own taxes can be easier, faster and less expensive than using a paid preparer.

"People don't realize they're going to have to take the time to gather all the information the tax preparer needs to do their taxes anyway, then that person will just plug the numbers into a computer program. They might as well do it themselves and save some money, White says.

All you have to do to file online is log on to a site like www.online-taxes.com, enter your personal information, and plug in numbers from your W-2 and other tax forms. After you pay a nominal fee - $7.95 for a federal return and $5.95 for a state return at Online-Taxes.com -- the site will electronically forward your return to the Internal Revenue Service.

The fees are just a fraction of what you'd pay to hire a professional. A study conducted by Consumer Reports found that during the 2002 tax year, taxpayers paid professional preparers between $150 and $450 to do their returns.

"The cost of hiring someone to prepare your return can eat up most, if not all of your refund, says White.

Convenience is also a factor. No need to travel across town or wait in a long line for the preparer. You can work on your taxes anytime, anywhere -- at the kitchen table, or in bed in your pajamas, White points out.

Time savings should also be considered. When visiting a preparer, it can take 45 minutes or longer -- not counting wait time in the office -- to get the return done.

"Most individual returns can be completed in half an hour or less using online tax preparation sites, he says. "And since everything is done electronically, you can expect to receive your refund in just 8 to 14 days rather than having to wait weeks. If you have to pay, you still have until tax deadline day -- April 15 -- to get your payment in.

But perhaps the biggest benefit of doing your taxes yourself is the crash-course you'll get in personal finances. You become immersed in your own personal financial situation -- forced to think about savings and debt, and exposed to the benefits of tax-saving retirement measures like IRAs.

You don't have to know the tax code to use online software -- it works using a simple interview format. Online software is updated each year and certified by the IRS and every state, so you will receive an accurate return with all pertinent deductions. Many sites offer customer service to help you if you get stuck. At Online-Taxes.com, customers have access to a free live chat service.

"If you are smart enough to change your own oil, follow a recipe or buy a pair of shoes online, you are capable of doing your own taxes, says White. "Online software has matured to the point where it can accommodate nearly everyone's tax returns, no matter how complicated."

For more information about the benefits of completing your 2004 tax return using the online software, visit www.online-taxes.com.

Courtesy of ARA Content

by Cyndi Roberts

It happens to all of us. There are still a few days left till payday and somehow that last paycheck just didn't last long enough! Or maybe there were some expenses
this week that really were not expected--new tires, school expenses, medical emergencies.

These are the times to fall back on some really tight-wad strategies.

1. No money to put gas in the car? Walk to work--it's good exercise. If walking is not an option, try to carpool with a co-worker who lives near. Or share a ride with your spouse. It may mean getting to work earlier, so be prepared to use extra time constructively. Start that book you've been wanting to read; take your needlework and finish a project you've not found time for, etc.

2. Quench your thirst with good ol' water, not Cola, or anything else you have to buy. Bring your water from home, if necessary. That goes for kids' lunches, too.

3. Of course, you know to carry your lunch and snacks. Make it a challenge, to see how many days you can go without spending any money.

4. Bring out that "change jar" and roll all your coins. Most people have a spot where they keep all that extra change that accumulates. What better time to use it?
If a trip to the bank is not feasible, just carry along a roll or two of dimes. Quarters can get pretty heavy, but dimes or nickels can be toted pretty easily in your bag.

5. Out of bread? Instead of making a run to the neighborhood convenience store, why not make your own? It's cheap, some recipes don't even require kneading, and it uses ingredients you probably have on hand.

If you keep baking mix on hand, you can just make biscuits. Biscuits are a great addition to a meal and are very quick to make. They can even be toasted for breakfast.

6. Out of milk? Keep a box of instant dry milk in your cupboard for just such emergencies as this. If you don't like the taste of reconstituted dry milk, try adding a
quart of the dry milk to a quart of your regular milk. Chilling it before drinking makes it a bit more tasty.

7. A low-cost supper that most everyone likes is simply an omelet. Pair it with some canned or fresh fruit. Another easy idea is pasta and sauce. Most grocery stores have their own brand of spaghetti sauce mix, usually for about 35 cents. All you add is tomato sauce. Serve this with any kind of pasta--it doesn't have to be
spaghetti, use whatever you have on hand.

8. Our local radio station has a daily program that features people calling in and telling about things they have for sale. If you're really strapped for cash, find
something that you don't use anymore and either check with your local radio station for a program like this one or maybe put an ad in your local newspaper. Maybe even an ad on the bulletin board where you work.

Another option is selling on online auctions. Even some clothes you don't wear anymore can bring in a little bit of emergency cash. Or maybe there's a consignment shop in your area.

"If you know how to spend less than you get, you have the philosopher's stone."
-- Benjamin Franklin

About the Author
Cyndi Roberts is the editor of the "1 Frugal Friend 2 Another" bi-weekly newsletter, featuring creative ideas and tips to help you "live the good life...on a budget!" Visit http://www.cynroberts.com to download a free "Recipe Sampler". Subscribe to the newsletter and receive the free e-course "Taming the Monster Grocery Bill".