Do Your Taxes for Free

There are many ways to prepare your tax return this year. Millions will opt for H&R Block ™ or Jackson Hewitt ™ for their 'instant' refund programs. But professional tax preparation can be expensive, and refund anticipation loans (yes, the instant refunds are loans) can be quite pricey.

If you need money now, these might be your only option. But, if you're in not so much of a rush, you can save yourself thousands by choosing an alternative.

Millions more will use a computer program like TaxCut ™ or TurboTax ™. These are inexpensive alternatives that allow a tax-savvy budgeteer to find the appropriate return and documents, fill everything out fairly easily, and get it all sent off via e-file. It all costs, but it's fast, and pretty cheap. Last year, that's what I did, and I had my return appear in my bank account by the magic of direct deposit in just 11 business days.

Others will do their returns the old-fashioned way, filling out the forms by hand. That's all well and good, if that's what you like to do. But it's time-consuming, slow, and highly susceptible to error. Not to mention, a paper return is far more likely to trigger an audit, every taxpayer's nightmare.

There is one advantage to using paper returns: they're free. But they aren't the only free option.

This year, I learned about another tax service. It's just as fast and easy to use as the best tax software suites, it automatically calculates your refund while you work, and it checks for errors. It's a website called TaxSlayer.com ™

Oh, I almost forgot the best part: it's free.

I gave TaxSlayer a trial run today (I haven't yet received my W-2s, so I'll have to wait a bit before filing for real), and I was impressed. The menus are easy to navigate, and all the information can be input fast. My taxes are fairly complex, with kids, tuition, business expenses, and all manner of details.

It took me under an hour. (Full disclosure: I've been doing taxes and helping others with their own for years, so I'm probably faster at it than most).

The only time you pay anything is when you e-file, at the very end. It costs $9.95, which is roughly half what it costs to e-file through the brand name tax programs, and just a fraction of what going to a tax store would run.

On the down side, when you create your account, you have to go through some special offers. Not to worry: it's only one screen, and some of the offers might actually be useful. For example, one is an offer to open a Chase ™ deposit account, which you might then use to have your refund direct deposited.

If you're interested, you can just type your name at the bottom of the offers page, enter your date of birth, and they'll send you the info (they have to make some money somehow). If you'd rather not, just hit the "cancel" button - it won't delete your account, just let you bypass the offers.

After that, you can plug in your information; there's a step-by-step wizard that will guide you. Just fill in the blanks and click 'continue'. It's all done through a secure, encrypted server connection, so your private data will be safe. And, in just a few minutes, you'll be able to view your return.

Fair warning: TaxSlayer has the ability to do state returns, but doesn't have every state available; if you live in some Midwestern states, or a couple of other areas, you might only be able to do your Federal return.

They also have a "Premium" version for sale. It has an advanced Wizard, it can be downloaded, and it lets you do a few other tricks. Most people don't need it, but it's there if you really want it. It costs $19.95, and that includes the $9.95 e-file fee.

There are other ways to do your taxes for free: the IRS has a number of links to free preparation services, each with their own guidelines for who qualifies for assistance (usually for low-income households). There are also ways to e-file for free, which can also be found (with some digging) on the IRS website.

All told, though, any of the options out there are worth the money, if they offer what you need. For instant returns, going to see the tax man might be your best bet. If you're gun-ho to not pay a dime, going on a scavenger hunt through the IRS site might be for you.

Personally, I like software. It's cheap, fast, easy, and I can do it all myself, even better than on paper forms. But for overall ease of use and value, I have to recommend TaxSlayer.com - it has all the important benefits of the big-name software, and, in case you didn't notice yet, it's free to use.

It's your call, and it's your money. The next move is yours. Good luck.

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