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A lot of people waste money yearly by paying an accountant to do things that they are able to simply do themselves. If you are aware of how to pick a great income tax preparation software, you will be able to simply get rid of your accountant with no problems.

1. Do you want to use a web based software, or one which resides on your computer? Both have their pros and cons. A web based program does not occupy any room on your hard drive and once you have saved your tax return you can go back to it via any computer. I've had to do this multiple times. Many times, you could get an internet based program at no cost if you are simply doing the basics.

Many people are worried about safety, and would prefer their data be stored only on their personal computer, this is understandable considering identity theft. It really depends on what you're most comfortable with.

2. Do you need any 'specialty' filing? Usually this means anything beyond a 1040. If you do not know what that means do not worry. After you've answered the software's initial couple questions you will know what you need to do. 'Specialty' filing includes self-employment, some small business, extremely large incomes, and several additional irregular situations.

Ensure the program you select supports whatever you need. There are a lot of free internet income tax preparation software programs, however you might need to pay additional money to file some of these more elaborate forms.

3. Does it support federal as well as state tax forms? In many states you will be required to fill out a state income tax return. Many income tax preparation software programs will do this filing for an additional charge, however ensure to double check. There is nothing worse than filling out your whole federal return just to realize you are going to need to utilize a separate program to fill out a whole state return.

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