Why filing taxes on your own can be challenging
Filing your taxes seems like it should be easy — a percentage of what you earn goes to cover government expenses. However, with credits, deductions, different tax brackets and a host of other things, determining what your taxable income actually is can be tricky. To make things even harder, the tax laws that you use to calculate what you owe constantly change. This year, there will be many changes affected by the new One Big Beautiful Bill law. Having the right tax software to navigate these new laws will give you what you need to file with confidence.
What are the main tax changes this year?
According to the Internal Revenue Service, some of the key changes to be aware of this year are:
- The Child Tax Credit is increasing and will be worth up to $2,200 for each qualifying child.
- The Earned Income Tax Credit-eligible taxpayers with no qualifying children may receive up to $649.
- Parents/guardians and other qualified individuals may set up retirement accounts for children, called Trump Accounts. According to the IRS, “A pilot program contribution of $1,000 is available for children born between Jan. 1, 2025 and Dec. 31, 2028, and who are U.S. citizens with a valid Social Security number.”
- Taxpayers may receive a 1099-K.
- The standard deduction is increased to $31,500 for married couples filing jointly, $23,625 for heads of household and $15,750 for single filers.
- There will be a temporary deduction available until 2028, allowing individuals to deduct tips and overtime from taxes.
- Seniors ages 65 and older may take a larger deduction of up to $6,000 until 2028. The deduction phases out at $75,000 and at $150,000 if you’re married filing jointly.
Benefits of using tax software
While everyone will have different reasons for switching to tax software, some of the biggest benefits are:
- It can save you money.
- The best tax software is user-friendly. It asks you questions and is interactive, so you feel confident making choices.
- Filing yourself teaches you about tax law, so it is no longer a mystery.
- Preparing your own taxes lets you know what to expect, so you can be organized throughout the year.
- Taking full control of your taxes can reduce stress and anxiety.
- You can file in your own home at your convenience.
- Filing online is environmentally friendly.
- Filing online usually means you get your refund faster.
Stress-free H&R Block tax software solutions
If your taxes are complicated because you are self-employed, a freelancer, an independent contractor, are part of the gig economy or you own a rental property, this is the best option for you.
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For the average homeowner who has investments, this option helps you understand how to maximize your deductions. You can get it with or without a state tax option.
When your taxes aren’t very complicated, you don’t want to spend a lot of money on software with all the bells and whistles. This basic offering from H&R Block is user-friendly and best for the individual looking for a little help and reassurance when filing a simple federal tax return.
If you own a business, you have challenges that other tax filers do not encounter. According to H&R Block, this option is specifically designed so a business owner can file their “federal, state and business taxes easily, accurately and on time.”
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