Tax preparation time can be worrisome and stressful for some people, as there are a lot of paper works to be done. Thus it pays to start getting organized early to avoid the last minute rush.

There are many options for tax preparation, from old fashioned pen-and-paper to software to tax preparation software. Should you do your own taxes with tax preparation software or online tax preparation applications or opt for a tax preparation service?

First, consider the complexity of your tax return. If you have a standard single or married filing return, with or without dependents, it is probably easier to file your own taxes by hand or computer.

If you have a lot of itemizing or additional sources of income that you wish to claim deductions, filing your own return by hand can be quite challenging. If you have a more complex tax return, a tax preparation software or online tax preparation service can make a complicated tax return much easier for you.

Doing your own taxes is not that difficult. As mentioned earlier, tax preparation software or an online tax preparation application can make the process simple, even for a complicated tax return. If you are self-employed and need to do taxes for your business, it may be more practical and financially beneficial to seek out professional tax preparation help. However, there is nothing wrong if you are interested to do the tax yourself.

If you have not used tax preparation software before, it might be intimidating to get started but the rewards are definitely worth your while. There are several companies that have been in the market for many years now, and the process has become much more mature and user friendly.

First, visit your local computer shop or go online to do some research. Different tax software suit different needs. Read some reviews online or talk to other people who have experience using tax preparation software. Also consider the parent companies behind the tax preparation software titles. Once you take the plunge, you will probably be back year after year. By the way, it is probably less expensive to purchase online since you can download the software right away. There is no need to pay for shipping charges.

Experienced users feel that one major benefit of tax preparation software is the ability to import common data from the previous year's return. This means less data entry for things that often do not change from year to year, like your name, address, social security number, children, and even some data from your W-2's.

After that, most of the programs follow a pretty standard process. The tax preparation software will guide you through an "interview" process, resulting in a completed tax return. Just about every form imaginable is available in most of the packages, and most will allow you to e-file or print and mail your return.

One nice thing about the interview process in tax preparation software is that you can stop and start any time you wish, without having to make a follow-up appointment with your accountant.

Using tax preparation software may seem daunting at first but once you get over the first hurdle, it is unlikely you will continue to file your tax using the pen and paper way.