Tax Software, A Wonderful Tool but Pass on One Feature

The proliferation of tax software along with free electronic services that complete US Tax returns has been on a tear over the last several years. In an outstanding article from the New York Times , pointed out to me yesterday by clients who dropped by the office, states an important point, “Trust but Verify” especially when downloading transactions directly from statement vendors.

No Need to get Frustrated over Taxes

I would take this one step further and recommend all tax payers pass on downloading electronic transactions directly to their tax software.  The software companies who provide services to consumers and businesses for US Tax return completion are extremely good and very adequate for those willing to tackle their returns themselves, in my opinion.  The one item I have repeatedly seen troublesome  is electronic delivery/downloading of information from investment and employment vendors. The problem with electronic delivery of transactions from 1099’s, W-2’s, and other similar statements are the variety of vendor reporting methods.  While often cumbersome and somewhat tedious, I strongly recommend tax filers enter their own data when completing their US Tax returns.

If in doubt, seek outside help, or your accounting professional as one small error could cost much more than the savings of doing your taxes yourself.

Have a Great Day!


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