Tax Preparation 101: Ways to Reduce Tax Preparation Costs

As the tax season begins, Americans prepare for filing by hiring tax preparers and buying tax softwares and it probably will be expensive. In this article, read and find out the ways to reduce the costs of preparing your tax returns!

Tax Preparation [Photo: How to Start an LLC]

READ ALSO: Biden Proposes Renters Bill Of Rights To Protect Renters, Make Rent Affordable

IRS Free File

According to Orem, several taxpayers will depend on tax softwares to prepare for their tax returns. Fortunately, not everyone has to purchase a software. Taxpayers who have an adjusted gross income of less than $73,000 can access the guided tax preparation from trademark companies through the IRS Free File program.

Freebies on Tax Software Websites

In general, tax software companies charge for their programs. However, several tax software companies also provide a free version for taxpayers with simple tax returns. This means that the free options are for those taxpayers who do not plan to itemize deductions. The free versions are also for those taxpayers whose sources of income are mostly related to their work instead of businesses, investments, or other means.

Free Tax Clinics

An article on the Internal Revenue Service website says that the federal grant programs finance the free Volunteer Income Tax Assistance (VITA) clinics across the U.S. These VITA clinics are intended for taxpayers with disabilities, language barriers, or incomes of less than $57,000. There are also other free clinics like the Tax Counseling for the Elderly. These clinics are intended for those taxpayers who are aged 60 or older. Furthermore, the Department of Defense MilTax program is intended for some veterans and active military personnel. All of these clinics operate through different community organizations in all of the 50 states.

READ ALSO: U.S. Average Monthly Rent Falls Below $2,000 Per Month