Can a 2006 Income Tax Calculator Save You Money?

How can you save money, and possibly even get money back, when you're in the hock to the IRS? It's easier than you'd think. Every year, taxpayers miss critical deductions that could save them hundreds or thousands of dollars -- and studies show that late tax filers are actually more likely to get a refund than average. Even better, their refunds are much larger than those owed to typical filers.

If you plan on filing your 2006 taxes, a 2006 income tax calculator is crucial. You'll want a program that doesn't just take into account your wages and tax brackets -- it also needs to evaluate critical deductions-related information like the number of dependants you have, your mortgage situation, your state taxes, and any special tax credits you might be eligible for.

It's easy for someone slap together a 2006 income tax calculator just by running the basic numbers with brackets. But that could lead to taxpayers wildly overpaying the IRS. The IRS has designed the tax system so it's easy to calculate a worst-case scenario, and much more time-consuming to figure out all the deductions, credits, and other goodies that ease the pain.

Relying on the simple answers can make things go faster, but it's not the best way to maximize taxpayer benefits. A great 2006 income tax calculator will cover all the basis, ask probing questions that get at exactly how you can save money, and will set up your return in a way that maximizes deductions and minimizes hassle.

When you're picking a 2006 income tax calculator, don't skimp on those extras. It's easy to develop a 2006 income tax calculator that ends up costing you money, and a lot harder to make one that gets things exactly right. Because of this, the price tag for a good income tax calculator is a bit higher than that of a bad one. But when you consider the numbers, it's rare to find a tax deduction that won't cause the better income tax calculator to pay for itself.

This is part of why big companies pay millions of dollars for specialists to go over their taxes with a fine-toothed comb. Investing in good tax preparation is a great bargain, and thanks to tax preparation software, it's now easier than ever.

Byrne Hobart is a New Yorker with widely, perhaps even bizarrely varied interests. He's always interested in how small businesses can help people interact with government, as exemplified by how taxpayers can use a 2006 income tax calculator to save money.


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