In today’s digital age, online tax filing has become the preferred method for most individuals to submit their tax returns. It’s convenient, cost-effective, and simplifies the tax filing process. However, despite the ease of online filing, many still prefer to consult with a tax professional before finalizing their returns. Taxes can be complex, and seeking professional guidance ensures that you’re maximizing eligible tax deductions and credits. This is particularly relevant for the tax year 2020, with factors like COVID-19 stimulus checks and unemployment benefits potentially impacting tax liabilities. A tax professional stays abreast of the latest tax regulations and can help optimize your refund or minimize your tax burden. Yet, the cost of hiring an accountant or tax attorney can be prohibitive for some. Fortunately, there are several low-cost or free resources available that provide assistance with tax returns.
Low Cost Tax Help
If your income falls below a certain threshold (typically less than $72,000), you may qualify for Free File, an IRS program designed to assist taxpayers in filing their federal tax returns at no cost. Through this program, you’re connected with tax preparers or software that participate in the program, offering free federal tax filing assistance. However, there may still be charges for state tax return preparation if you opt for assistance. Fortunately, the tax preparer who assists with your federal return may also be able to help with your state taxes or provide guidance on how to proceed, potentially saving you the expense of hiring additional assistance.
States Can Also Have Its Own Programs
Remember to explore your state’s resources for additional assistance. For instance, California offers programs like Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE). VITA is geared towards individuals with lower income, disabilities, limited English proficiency, or military personnel. Conversely, TCE targets individuals aged 60 and above.
The TCE program, especially, deserves more recognition. During my regular visits to the library, I often encounter individuals searching for paper tax forms provided by the library. I can’t help but imagine these individuals struggling at home, attempting to navigate through paperwork and perform calculations manually. Offering free assistance to these seniors could significantly ease their tax-filing process.
Additionally, AARP provides a tax program known as Tax-Aide, which is the largest volunteer-run tax assistance service nationwide. It caters to individuals over 50 with low-to-moderate income. Whether you need help understanding complex tax matters or assistance with filing, AARP’s certified volunteers are available to assist you either remotely or in-person. Rest assured, these volunteers undergo thorough training and are IRS-certified annually, ensuring reliable and knowledgeable assistance.
Local University
Make sure to reach out to your local university, especially if you reside in a college town. Many accounting students are willing to volunteer their time to assist taxpayers with filling out their returns. They can help you uncover deductions and credits and address any tax-related queries you may have. This resource can be particularly beneficial if you have a more intricate tax situation. Typically, the students are supervised by their professors, providing you with access to additional expertise if needed. Moreover, this assistance is often provided at no cost or for a very reasonable fee.
Local Tax Clinic
Consider reaching out to your local tax clinic, which is available in most cities. These clinics typically offer workshops or clinics aimed at educating and assisting individuals with their tax returns. While there may be a small fee involved, it is often much more affordable than hiring an accountant. In some cases, these clinics may even offer their services for free, depending on your income level. Engaging with these clinics provides an opportunity to receive professional advice while still managing to complete your tax return independently. After attending a few sessions, you may gain enough confidence to handle your returns on your own.
Do-It-Yourself
Consider taking the plunge and filing your own tax return. We understand that if you’re seeking out advice on affordable tax assistance, you might not feel completely confident about doing it yourself. However, mastering the art of filing taxes is a valuable skill to acquire. Taking control of your finances means understanding your taxes inside and out.
The good news is that filing your own taxes has never been easier. There are numerous user-friendly tax software options available, some of which can even optimize your return by suggesting deductions and credits you might have overlooked. Additionally, there is a vast array of online resources to guide you through the process. Whatever obscure tax question you may have, chances are you can find the answer with a simple Google search.
While it may require some initial time investment to research and educate yourself, filing your own taxes remains one of the most cost-effective ways to manage your finances.
In Conclusion
Although filing your own return is an option, you might not feel confident enough to tackle it yourself. In that case, online filing is likely the most convenient, efficient, and cost-effective method available today. Many tax software platforms offer a free version, though you may need to search for it.
Alternatively, if taxes cause you significant stress and you prefer to have a professional handle them, there’s no shame in seeking assistance. Tax professionals possess insights and expertise that you may lack, and they can often complete the paperwork more swiftly than you could on your own. This can streamline the process, particularly during the busy tax season. If you’re concerned about the potential expense, don’t let it deter you from seeking help. Explore your options, as there are numerous low-cost and even free resources that could be accessible to you.