Whether or not using online tax filing software is beneficial for individual taxpayers depends on each user’s tax requirements and their desired experience. Many people find tax filing with software worth it because of its:
- Speed
- Accuracy
- Convenience
Take some time to think about whether you have simple tax returns (single W-2 income and/or the standard deduction) or more complex elements (investments and/or multiple incomes). An affordable system might be in reach if you know what you need to make tax season easier and do not settle on getting a “free” system with hidden fees or upsells.
Advanced Micro Solutions’ 1099-etc E-Filer software is the most affordable solution on the market and is customizable for software users looking for modular capabilities.
Choosing between software and hiring a professional tax preparer is a personal choice. If you select our e-file solution, we offer two distinct processes:
- E-File Direct (add-on module)
- E-File Services (via third-party vendor)
What are the Benefits of Using Online Tax Filing Software?
Considering the advantages of using your first tax software program will help you choose the one that is best for you. Individual taxpayers should prioritize software that improves their tax filing:
- Cost-Effectiveness
- Convenience
- Efficiency
- Organization
- Security
- Accuracy
Cost-Effectiveness – Investing in software for tax filing may be more affordable for individuals than hiring an expert professional. Customizable systems like ours can offer modular solutions that allow you to pay for features as you add them onto the base program.
Convenience – Filing when you want and where you want before deadlines is desirable for a lot of taxpayers. Look for a system with an intuitive, menu-driven format to simplify filing your taxes.
Efficiency – Receiving your refunds in less than 21 days is possible when a user electronically files returns with online tax filing software. Quicker processing for e-file returns than paper ones is a big pull for software users.
Organization – Keeping digital and physical copies of tax returns is a good practice to get into when you purchase new software. Digital copies are helpful if you:
- Apply for a mortgage
- Receive an audit notice from the Internal Revenue Service
Security – Protecting your personal and financial data is easier with secure software. Eliminate sending sensitive paper documents through the mail when you can electronically file documents directly to state agencies and/or the Internal Revenue Service.
Accuracy – Performing automatic calculations and providing built-in error checks are significant benefits for anyone who uses online tax filing software. The best software will help you to:
- Reduce the risk of manual errors
- Eliminate heavy penalties and fines
- Avoid wasting time and resources on submitting corrections
There is a less than 1% error rate for e-filed returns compared to 21% for paper returns.
Potential Drawbacks of E-Filing Individual Taxes
There are always potential drawbacks for any tax filing method. It is important that you remain realistic and consider each of them before you make any final purchasing decisions.
- Hidden fees and upsells
- Limited features
- Not enough human support
- Security risks
- Mistakes
- Learning curve
Hidden Fees and Upsells – Getting a “free” program from a software provider is rarely the best solution. Paying for online tax filing software is more likely to give users access to specific forms and features that they need, including:
- State returns
- Automation
- Handling more complex financial situations
Limited Features – Professional tax experts can provide personalized advice to individuals or families before it comes time to file their taxes. Knowing how to best maximize any credits and deductions is easier for a professional. They can also help if you:
- Have multiple income streams
- Own a business
- Own rental properties
- Make regular investments
Lack of Support – Filing your taxes with only technical software support might not be enough for you or your family. Complex tax questions might require seeking the expertise that only an accountant or CPA can provide for you.
Security Risks – Online tax filing software should prioritize the security of user information, but no system is entirely foolproof or insusceptible to attacks. Data breaches do happen and a user may neglect to keep the system updated. Falling behind in the regular updates can compromise your security if you do not automate the updates.
Mistakes – Identifying math errors is only as effective as the accurate information that a user enters into the program. If you do get software, you will want a system that provides its users with comprehensive importing and exporting capabilities.
Learning Curve – Using tax filing tools can come with a steep learning curve if the online tax filing software is not intuitive or menu-driven. Testing out a demo or free trial is a good way to see whether your prospective software is easy for you to navigate.
Filing From Home Vs. Hiring An Accountant
Let your specific tax filing circumstances guide your decision for how you want to e-file returns. Getting your own program to manage reporting at home is a good option if you:
- Want a refund as quickly as possible
- Need to save money on filing fees
- Have a simple tax return (single W-2 income and standard deduction)
- Are confident about independently using software
Hiring an accountant might be pricey for some individuals or families. An expert can also save you from paying high penalties or fines if you are not equipped to download and use online tax filing software. A professional can help taxpayers who:
- Want personalized tax planning advice
- Are looking for greater peace of mind
- Do not feel comfortable with independent tax filing
- Have a complex tax scenario (investments, rental income, self-employment)
- Went through a recent, major life event (marriage, divorce, new child, inheritance)
Knowing what type of support you will get is important before you purchase software or hire an accountant. If you feel confident with the financial end of things, ask your prospective software provider about their customer support. Our users have access to:
- Live expert support
- Frequently Asked Questions resources
- Video tutorials
Best Tax Filing Features for Individuals
The best tax filing features will look different for each person who uses online tax filing software. Someone who has multiple streams of income and itemized deductions will not have the same priorities as a single wage earner with W-2 income who takes the standard deduction.
Using a comprehensive system with flexibility across the board is the way to go if you foresee a change in your tax situation or financial priorities. Core features to help an individual get started and stay compliant are:
- Formatted, step-by-step guidance
- Easy importing to enter personal information
- Easy file verification and printing
- On-demand, live technical support
- Multi-state filing
- Easy state W-2 file creation
Losing time by worrying about making tax errors is not something that anyone wants or needs. Using online tax filing software should streamline the process for users and reduce the amount of work for you in the short and long term.
Understanding AMS Software’s Modular Capabilities
Downloading our free 1099-etc Demo software is the first step to understanding the full scope of our 1099-etc software. Along with an E-Filer, we have five other optional add-on modules that all integrate with our base W-2/1099 Forms Filer program. The other modules are:
- AMS Payroll
- Software Generated Forms
- Forms Filer Plus
- 1042-S Filer
- Affordable Care Act Filer
Using AMS Payroll allows users to track payroll — plus federal, state, and local taxes — for all 50 states. Print your W-2s and 1099s to purchased, pre-printed forms with our integrated online tax filing software.
Printing most of your forms onto plain white paper is easy with the Software Generated Forms module. Eliminate needing to purchase pre-printed forms, and save money. Saving your time is also possible with the Forms Filer Plus module. Key in the information on miscellaneous forms.
The 1042-S Filer lets users complete and print a 1042-S form to a purchased, pre-printed form. Adding the Affordable Care Act Filer module helps users record all the essential details when they file:
- Form 1094
- Form 1095-B
- Form 1095-C
Print these forms to purchased, pre-printed forms or use our E-File Services option with support from a third-party vendor.
Users who explore our online tax filing software learn quickly that the e-file solutions differ from each other in key ways. Deciding which option will serve you best throughout a year and during any tax season requires you to know exactly what you need and want from it.
E-File Direct
- Flat fee
- Unlimited number of form filings
- Users can verify, view, and print files
E-File Services
- Volume pricing (fee per form)
- Forms are e-filed through a third-party vendor
- Different service levels available
Using e-filing tools is a great way to streamline your tax season and reduce your paperwork. Users often find that it is a trustworthy solution that saves them plenty of time and money on printing expenses.