Which would you prefer, pay $200 for your taxes to be filed, pay $300 or more for free tax USA companies to file your taxes or pay nothing and do them yourself?
Free Tax USA has nothing to do with free tax; it has to do with companies that will do your taxes for free based on an agreement that if you get a refund they get a percentage of it. Initially, this sounds like a great offer but as you delve into it a bit deeper you begin to see both pros and cons of the agreement.
Firstly, nothing is free! You will quickly find out that you have to do a lot of work to enable any company to be able to soundly do your taxes for you. They need all your receipts, stubs, figures as well as any purchases you can use to reduce your tax.
Secondly, if you agree to a percentage of refund, even a low percentage of income it can be a fair amount. The average US income tax refund is $3,000 and 80% of people who file income taxes get refunds. If your agreement was a low 10% then the firm preparing your free tax USA submissions will get $300 for filing your taxes. Many people have larger returns and many companies charge more than 10%.
However, on the plus side of the equation are these companies usually have a great deal of experience if they are busy and in business. Their employees are usually very good at identifying areas where you can reduce your tax burdens and maximize your benefits. It is in this company’s best interest to work harder for you ensuring you get the largest refund legally allowed from your return.
In addition, most of these companies use current government resources and you will be able to track your return’s progress either from their website or the government’s website. Some of these companies, a small number of them actually do them free with no strings attached as a charity.
There are both pros and cons to free tax USA agreements. They do require that you do a lot of work and the percentage, however low, could be a substantial amount even more expensive than if you just pay to get your taxes done in the first place. However, these companies usually work harder to ensure you get a tax refund and the larger you get the more they get paid.
Sometimes, it’s just best to hire someone to do your taxes. If you are getting a refund, then it will probably be cheaper than utilizing free tax USA companies. There are other options; after all you can just decide to do you taxes yourself. After all with the retirement age in USA going up, you will be doing them for longer. There are many a Tax Refund Calculator you can find quickly online that might be all you need to get your taxes submitted.