Why filing taxes on your own can be challenging
Filing your taxes seems like it should be easy — a percentage of what you earn goes to cover government expenses. However, with credits, deductions, different tax brackets and a host of other things, determining what your taxable income actually is can be tricky. To make things even harder, the tax laws that you use to calculate what you owe constantly change. This year, as the economy continues to emerge from the pandemic, there are several significant changes. Having the right tax software to navigate these new laws will give you what you need to file with confidence.
What are the main tax changes this year?
According to the Internal Revenue Service, some of the key changes to be aware of this year are:
- Life changes, such as divorce and number of dependents, may affect your filing status.
- Tax credits are returning to 2019 levels. This means if you have been receiving a refund, it may be significantly smaller or nonexistent this year.
- Charitable contributions must be itemized.
- Child Tax Credit, Earned Income Tax Credit and Child and Dependent Care Credit revert to pre-COVID levels.
- A greater number of people may qualify for the Premium Tax Credit.
- The rules for claiming a Clean Vehicle Credit have changed.
- There were no stimulus payments.
Benefits of using tax software
While everyone will have different reasons for switching to tax software, some of the biggest benefits are:
- It can save you money.
- The best tax software is user-friendly. It asks you questions and is interactive so you feel confident making choices.
- Filing yourself teaches you about tax law, so it is no longer a mystery.
- Preparing your own taxes lets you know what to expect, so you can be organized throughout the year.
- Taking full control of your taxes can reduce stress and anxiety.
- You can file in your own home at your convenience.
- Filing online is environmentally friendly.
- Filing online usually means you get your refund faster.
Stress-free H&R Block tax software solutions
If your taxes are complicated because you are self-employed, a freelancer, an independent contractor, are part of the gig economy or you own a rental property, this is the best option for you.
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For the average homeowner who has investments, this option helps you understand how to maximize your deductions. You can get it with or without a state tax option.
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When your taxes aren’t very complicated, you don’t want to spend a lot of money on software with all the bells and whistles. This basic offering from H&R Block is user-friendly and best for the individual looking for a little help and reassurance when filing a simple federal tax return.
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If you own a business, you have challenges that other tax filers do not encounter. According to H&R Block, this option is specifically designed so a business owner can file their “federal, state and business taxes easily, accurately and on time.”
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For individuals who want to file online, this product from H&R Block has four tiers: Free, Deluxe, Premium and Self-Employed. Choose the option that’s best for you and get started immediately.
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