Software can save when filing your taxes

Unless you've always dreamed of quitting your day job and becoming a CPA, there's only one reason for you to do your own taxes: to save money.

The average tax-preparation fee for a federal return with itemized deductions and a state return is $205, the National Society of Accountants says. If you don't itemize, the average fee is $115.

But with tax software, you can prepare your own return for less than half that amount. Taxpayers with adjusted gross income of $54,000 or less can prepare and electronically file their federal returns for free via the IRS Free File program.

Desktop programs cost more than online programs, but they let you keep your financial information on your computer until you e-file your returns (or print them out and mail them in). If you're uncomfortable typing sensitive financial information into an online program, you may prefer a desktop program. The most popular desktop programs also let you prepare more than one return — a handy feature if you need to file returns for several family members.

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Your February tax to-do list

Don't rush to file -- you may end up regretting it

Eager for the stimulus-package rebate, taxpayers are filing tax returns prematurely. One taxpayer in South Dakota filed his tax return, got his refund -- and then received another W-2. Sure, that's one filing strategy, but it's fraught with error.

Slow down. The rebates aren't coming anytime soon. The IRS still has to tool up. See full story.

You have plenty of time to wait for all your W-2s and 1099s. You even have time to wait for the second round of correct 1099s from the brokerages and investment houses, which send out the first round just to comply with the January 31 deadline.

What can you do in the meantime? Consider these seven to-do items.

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The Savings Game: Change in tax law could benefit many investors

My plans for substantial tax savings next year, including tax-free stock dividends and long-term capital gains, revolve around one figure: $65,100.

While not official yet, $65,100 is projected to be the top of the 15 percent tax bracket for spouses filing joint returns in 2008, based on how brackets are adjusted annually for inflation. For single filers, it would be $32,550. For every extra dollar, Uncle Sam would take a progressively bigger cut (first 25 percent, then 28, 33 and 35 percent).

That's reason enough for my wife, Georgina, and me - and all taxpayers - to try to stay within the 15 percent bracket (by contributing to deductible retirement plans, for example, and claiming legitimate deductions and adjustments to income).

But there is another incentive: From 2008 through 2010, current tax law calls for a ''0 percent'' rate - that's right, nada - on qualifying stock dividends and long-term capital gains on the sale of securities for taxpayers in the two lowest brackets of 10 and 15 percent.

Source : http://www.sltrib.com/