Numerous merits are associated with early tax filing. Early filing provides you with enough time to gather all records required and make necessary changes well in advance before April 15. Late filing of taxes will be faced with penalties and interests from the IRS (Internal Revenue Service). Therefore, it would be wise to file your taxes early. Income tax filling software not only eases the process of tax filing, but also consumes just a fraction of the time required for traditional filing. This software is quite sophisticated and is capable of handling tax filing for small businesses, self employed entrepreneurs, and corporations.
First of all, you need to collect all the required documents and records serving as your income proofs, expense proofs and tax payment proofs. If you are in a job, the most important document required is the W-2. If you own a business or any other self employment scheme, your most important document is the 1099 misc. The 1099-int is the document is the common document for both business owners and wage earners. You can e file 1099-int form to support your interests gained from investments and bank savings.
In case you have additional taxable incomes, you would need to file both the standard 1040 form and a schedule ca form, apart from the 1099- misc or 1099-int (for interest income). Wage earners owning investment and homes would fall into the above mentioned category, and so you should e-file 1099-misc forms. You can use the form 1098 online for documenting mortgage interest in case you have availed a mortgage on your house.
If you just have a job alone; and you don’t have your own house, other investments or interest incomes, you can easily file your taxes on your own by filing w-2. Another form that you would need is the 1040ez form that furnishes your details such as your name, address, social security number, etc.
Thus you can simplify the complicated process of conventional tax filling that requires numerous paper works, by shifting to e- tax filing.