Consult a Financial Professional in Preparation for Tax Season

Consult a Financial Professional in Preparation for Tax Season

December 01, 2022
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Make that "Tax App" Work for You

Tax season arrives each year, rain or shine, and for many people, the idea of having to do their taxes can feel somewhat overwhelming. However, in today’s world, with advances in technology and the advent of the “app,” it is becoming easier than ever before to complete complicated tasks like filing taxes and checking for tax deductions and available credits.

According to data put out by the Internal Revenue Service (IRS), the average refund for tax returns in 2022 was around $3,205. Receiving the largest return possible (for those who have overpaid) requires you to fill out your tax return carefully and take notice of all tax deductions and credits. For example, the average refund in 2022 was nearly $500 higher than in 2021, possibly due to the boosted child tax credit. [i]

Having access to Tax Apps like TaxAct Express and TurboTax makes it easy to upload W-2’s, 1099’s, and other necessary documents, search for deductions and credits, and, in some cases, provide the ability to track your expenses, receipts, and mileage. [ii] Each of the apps is similar, yet offers different perks from auto-filling certain tax forms to advances on your refund, to pricing, so deciding which one to use might come down to which service works best for your situation.

There are many tax apps available, and numerous Best Mobile Tax Apps of 2022 lists exist, from U.S. News to Investopedia, so which one do you choose? Some of the top apps included in these lists get based on price, user-friendliness, and other factors. Here are four apps that seem to appear in most lists:

  • TurboTax (Considered best for Overall Tax-Filing Excellence)
  • TaxAct Express (Reasonable Prices and a Robust Free Package)
  • H&R Block (Best Live Support Online Assistance 24/7)
  • Quickbooks Self-Employed (Best for Business Owners)

If you are worried about the security of your information, according to Business Today Magazine, Tax Apps use the same encryption that banks use to send and receive information. Also, phone operating systems require people to download from legitimate app stores that screen out malicious apps, and unlike a computer, no tax information is stored on the phone. [iii]

In preparation for tax season, it is encouraged that you do your own research. Consider reaching out to us to help you understand better your tax responsibilities and options.

 

Footnotes:

[i]The Average Tax Refund for 2022 Keeps Growing. How Does Yours Stack Up? (fool.com)

[ii]The Best Tax Apps for 2022 (investopedia.com)

[iii]Filing tax returns via apps has advantages - BusinessToday - Issue Date: May 01, 2014

Important Disclosures

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax advisor.

All information is believed to be from reliable sources; however LPL Financial makes no representation as to its completeness or accuracy. 

This article was prepared by LPL Marketing Solutions

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