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You can do a great number of things that can help you save money. Some of them are nothing more than common sense lifestyle changes, but others require more creativity and research.
One of the methods that often goes overlooked is how you file your taxes. Those who need to file their tax returns in the US know how complicated a process this could be.
Moreover, it’s very easy to miss your chance to get some benefit if you don’t file your taxes just right. That’s why it’s usually recommended to hire a professional to do this for you.
However, if you want to save money, hiring an accountant is out of the question. The solution that you can use is DIY tax software that can do the accountant’s work for you. These solutions are much cheaper or even free. But they offer a great number of benefits.
Pros and Cons of Using Tax Software to Do Taxes Yourself
The main advantage of using tax software over trying to do everything yourself is that it’s more reliable. Of course, you might be an expert on taxes by now.
However, are you 100% sure you are up to date on all changes? What about the changes in taxation resulting from the pandemic? Are you sure you are aware of all relief options and your eligibility for them?
Top-quality tax software will be up to date on all possible changes because it’s updated automatically. This means that you might be able to benefit even if you aren’t aware of the new possibilities.
These apps can also help you manage your passive income and various alternative income sources that you might not know how to handle correctly.
Also, using tax solutions reduces the risk of mistakes significantly. This alone can save you a lot of money and stress as tax report mistakes can have devastating consequences.
Finally, DIY tax software saves you a great deal of time. The majority of calculations are automated. Therefore, you only need to dedicate a small effort to file taxes correctly.
That said, no service is perfect. Therefore, using tax software also carries some risks. The main concern is that the solution itself can make a mistake or not be properly updated.
However, this risk will be minimal if you use top software options available now. They improve constantly, so you can be reasonably secure in the knowledge that your tax return won’t have any mistakes. You can also go over it yourself to make sure.
In addition to this, remember that every state has unique tax laws and regulations. Therefore, you should always choose software that ranks at the top in your own country.
Top DIY Tax Solutions from Around the World
If you want to manage your tax return in Canada easily, you can use Canadian SimpleTax. Simple is the right word for it because this web app is incredibly easy to use.
You don’t need to download any additional software for it. You just open the website in your browser from any device and follow step-by-step instructions.
There is a friendly and efficient customer support service you can contact if you have any issues using SimpleTax.
Overall, you should be able to complete your taxes in about 30 minutes with the help of this service. SimpleTax will download information directly from your CRA, which simplifies the filling process for you.
TurboTax (The USA)
TurboTax by Intuit is one of the fastest-growing tax software solutions. It’s not surprising as Intuit software is renowned for innovation, ease-of-use, and reliability.
TurboTax is a particular hit this year when more people chose to file their taxes from home. Although originally it’s designed for US customers, TurboTax is a versatile solution with several localizations available.
This means that if you need to file tax return in a different country, you could check if it’s supported and use TurboTax to do it.
TurboTax is efficient in every form, but if you have a non-regular tax situation, you can use the Deluxe package.
It’s rather comprehensive and should be able to manage all your needs. The solution has very helpful support and tax interview systems. You can use this solution to get an at-home consultation with an experienced tax professional.
HMRC App (The UK)
Not many people need to file tax return in the UK. Those who do can use the free HMRC app to do this easily.
As it’s an official solution developed by the relevant government body, you will be sure to avoid any mistakes if using it.
There are commercial apps that claim to be more comprehensive. Admittedly, many of them are easier to use. However, the HMRC app is free and fairly comprehensive.
You can use it to report tax credits changes, track letters, claim refunds, and do other basic tax management related tasks.
POP Tax in Australia stands out among regular tax software because it specifically targets young adults.
It’s dedicated to guiding them in the process of filing taxes and educating them during it. The app is straightforward and simple.
The app is powered by Artificial Intelligence and gives information on how you perform compared to your peers.
Bottom Line: Can You Save Money with Personal Tax Apps?
Tax software is a solution that helps millions of people to not only save money but also avoid a lot of stress.
Today these solutions have become so sophisticated that they can be more reliable than a non-professional trying to manage filing a tax return on their own.
Some of the apps are completely free, which means that you can use them even on a very tight budget.
Therefore, there is definitely no reason for you to skip the benefits offered by personal tax apps. However, bear in mind that you should choose the solution carefully. Always study reviews and make sure it’s trusted by other people in your country.
But bear in mind that if you have a complicated tax situation, for example own assets in several countries, a tax app might not be able to help.
They are designed for simple and straightforward tax returns.