Tax Preparation For the Novice

Tax preparation can be very difficult and complicated. Especially for someone who works freelance or owns a small business. Libeti.com had the priveledge to interview Robert Edwards. Robert Edwards is the owner and founder of One Price Taxes. An company which makes online accounting software dedicated to simplifying tax preparation in a cost effective manner.

Libeti: What are the benefits for people to file taxes online through your software as opposed to finding and using a tax preparer?

Robert Edwards: Two of the biggest benefits of filing your taxes online through our software are price and convenience. When you have someone else file your taxes for you each year, you go through a similar ritual of gathering all your tax information, scheduling time to go meet with a preparer, and then waiting for he/she to contact you about the status of your return. Usually you will pay $100 and up for kind of service and you may also have to pay more based on your particular situation. With our software you can file your taxes online whenever its convenient for you and you only have one price to pay regardless of your situation. Most people can file their federal and state taxes on our website in less than 30 minutes for only $14.95. Our automated system will also let you know when your taxes have been accepted by the IRS.

Libeti: What advice or tips would you give a young recent college graduate, unfamiliar with the world of income tax, about using your software program?

Robert Edwards: Recent college graduates will find our interface to be very simple and easy to use. One of the great things about being a college graduate is that usually your income tax preparation isn't that complicated. So filing your taxes yourself and saving money that can be used for other expenditures is definitely the way to go.

One piece of advice we can give to college graduates is to pay close attention to their first W-4 form. When you find a job after college you will likely be bombarded with paperwork on your first day that involves health care, life insurance, etc. One of those forms you will likely receive on your first day is your W-4 form. This form is used to tell Uncle Sam how much money you would like taken out of your check each pay period. The reason this is important is because if you set your exemptions too high on your W-4 form and have less money taken out of your check at the end of each pay period then you will pay less taxes in during the year. This can often lead to owing a large sum of money when you file your taxes!

Libeti: How come many tax preparation companies raise their taxes after April, and your company chooses not to do so?

Robert Edwards: When we started OnePriceTaxes.com, we wanted to use a "one price" model so that our prices would never be confusing. Other companies not only offer different tiers of service based on your tax situation but they will also change their prices during and after the tax season. We want to keep our pricing model as simple and consistent as possible and we never try and "upsell" our customers during the process. We believe that whether you file your taxes on January 20th, April 15th, or June 1st, that your price should be the same.

Libeti: For someone that has never had to file their tax return working as a business owner, or as a freelancer, what should they be cautious about?

Robert Edwards: Our best advice in this situation is to keep good records of all your expenses and income during the year. Taxes for a business owner can be very frustrating if your books aren't kept in good order during the year.