Riverwoods, ILL. (Vocus/PRWEB) March 10, 2011
No one likes to pay taxes, but owing a small amount isn’t necessarily a bad thing, according to Gary Lundberg, a tax preparation professional with CompleteTax®. Based on IRS data, approximately 20 percent of taxpayers owed additional taxes at the time they filed their return last year.
“You want to minimize your taxes. However, many taxpayers feel that they’ve somehow ‘lost’ if they end up owing– even though they may have actually ‘won’ by keeping more control over their money,” Lundberg said.
Here are three reasons why taxpayers who aren’t getting a refund can feel better:
1. You did not give the IRS an interest-free loan. The average aggregate balance that people carried on their credit cards at the end of last year was $4,965, according to a TransUnion quarterly study. That’s not all: the average variable interest rate for credit cards was about 15 percent in 2010, according to the Consumer Action organization. Because your money was not tied up with the IRS, you had the choice of using it to pay down debt and potentially save hundreds of dollars in interest.
2. You had access to your money year round – and did not have to worry about the IRS delay in processing returns. Due to last-minute tax law changes late last year, IRS processing of returns and any refunds was delayed until mid-February for taxpayers who itemize. Many taxpayers who assumed they would have their refund back in their pocket by late January or early February had to wait several more weeks.
“If you were planning to put your tax refund to use this winter, you would have been better off putting the money aside on your own rather than counting on getting it back when you expect – because clearly, that’s not completely under your control,” said Lundberg.
3. You can prepare and file taxes online for free using CompleteTax. Any taxpayers who end up owing the IRS on their 2010 income tax return can depend on CompleteTax for free tax preparation software to file their federal return.
“No one likes to pay to find out that they owe taxes. So whether you owe the IRS $1 or $1,000, CompleteTax is free,” said Lundberg.
Planning 2011 Taxes – Adjusting Your Withholding
While owing taxes isn’t necessarily a bad thing, taxpayers who ended up owing a considerable amount may want to adjust their withholdings so that they are paying more during the year and avoiding any underpayment penalty. CompleteTax provides a free W-4 calculator to help people determine what their optimal withholding should be at http://www.completetax.com/calc.asp.
Free Tax Preparation Software
Throughout this tax season, any taxpayers who owe the IRS on their 2010 income tax return can use CompleteTax for free to prepare their 2010 federal tax return. Additionally, people claiming unemployment benefits in 2010 and those switching from TurboTax®, TaxACT® or H&R Block® online can also file taxes online for free using CompleteTax’s Premium federal tax product. CompleteTax Basic also offers free tax preparation software for taxpayers who need only the most commonly used tax forms and schedules.
CompleteTax is the fast, easy and accurate online tax preparation software solution for taxpayers who want the confidence that their taxes are done right and that they’re getting the biggest refund. CompleteTax walks you through every step necessary to prepare and file taxes online, including filling out all the necessary forms. With CompleteTax, taxpayers can either file taxes online (e-file) or print and mail their return. Learn more at CompleteTax.com and connect with us on facebook.com/completetax, twitter.com/completetax and youtube.com/completetax.
CompleteTax online tax preparation and e-filing software for consumers is developed by CCH, a Wolters Kluwer business. CCH (CCHGroup.com) is the leading global provider of tax, accounting and audit information, software and services. Wolters Kluwer is a leading global information services and publishing company (http://www.wolterskluwer.com).
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