ProTaxNet Online Filing Cooperative

Before deciding to do your own taxes online, first consider some advice from 800-TAX REFUND, the founders of ProTaxNet. Since 1990 we've e-filed tens of thousands of self-prepared tax returns, many of them computer-generated, and have a good idea where taxpayers are most likely to make mistakes when preparing their own returns. It is important that you review any recent changes in the tax laws (go to our own Tax Central) to see if any of the changes apply to your tax situation. Here's a few other trends we've see over the years:

1) Online filing appears to be best suited for young, low income, single wage earners who are least likely to qualify for Earned Income Credit or Retirement Savings Contribution Credits. If wages are over $9,350 and these filers could have Student Loan Interest Deductions and/or Education or Tuition Deductions or Credits, then it may be more beneficial to use our professional tax services.

2) Online filing may also be better suited for taxpayers whose tax situation has not changed since last year's return was filed. If you have a good grasp of your own tax situation and have last year's return handy to compare this year's results to, and if you're sure that nothing more can be gained by hiring a tax professional, then you're a good candidate for online filing.

3) If your tax situation is complex, or if your tax situation calls for review or preparation of a new or unfamiliar form or worksheet (college tuition, home sale/purchase or re-finance, sale of stock or mutual fund, etc.) then we do not recommend online filing, as it would be more beneficial to use the services of a tax professional.

Finally, and perhaps most importantly, should you decide to do your taxes online, make sure you feel comfortable with the online filing program you choose. Not only must it meet your specific tax preparation needs, but it should also be "user friendly", something that we believe our online fiing program achieves. It also helps to know as much as you can about the company that's handling your tax information: in 2009 IRS promoted 22 Online Filing companies as IRS e-file Partners, down from 103 companies they promoted in 2003.