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With the deadline for filing for 2009 tax season fast approaching, you may be wondering which tax tools will be the most beneficial for your particular situation; in fact, this question may have kept you from filing yet. If you are expecting a refund, you still have plenty of time to file. The IRS certainly doesn’t mind if you wait if they owe you money. But, if you are going to owe the IRS, you better get on the stick. They are much less forgiving, though filing an extension will buy you a little bit of time as long as you are paying what you figure your tax bill will be at the same time that you file the extension. The extension, contrary to what most of you might believe, is only an extension on getting your ducks all in a row and getting the paperwork filed. It does not relieve you of the responsibility of paying your taxes on time and you could be faced with additional fines and interest charges.

Another word to the wise: regardless of if you file by mail or file electronically, check the box for direct deposit. Your refund will be in your hands weeks sooner and you don’t have to worry about your refund check getting lost in the mail or someone stealing it from your mailbox. Also, if you don’t have a computer, look into asking a friend to use theirs or check with your local library. As tax time approaches you may find the library has a waiting line, so call ahead and find out the best times to come, or if there is a sign-in to schedule time.

So, what questions should you ask yourself when deciding which tax software to use and when should you decide to go to a tax professional or accountant?

• Are you a beginner? If this is the first time filing your taxes but you don’t expect to have deductions, examples of which would be mortgage interest paid or charitable donations, then most of the free tax programs will work for you. Just search free tax tools or free 1040 to locate any of a number of them. Even the IRS has free tax software for preparation. These should all allow you to file Earned Income Credit, the Childcare credit and the new hefty credits for Education. These credits do not require Schedule A for itemizing deductions. Be prepared to pay a small filing fee for some, while others are completely free. Also research to find out if you can also file your state income tax return at the same time. The best software may cost a little but is most often well worth the expense as they will check for errors, they will ask pertinent questions to make sure you are getting the maximum refund and will stand behind their accuracy.
• Do you need the Deluxe or Business edition? Most tax software companies have several different editions and may even ask you a set of questions to determine what forms will have to be filed along with your taxes in order to determine the edition best for you. Free tax software is usually restricted to the straight 1040 or 1040EZ forms, so be prepared to pay for upgraded editions. If you are a pro at this, then you can choose a less expensive program that does not contain the guides that a less expert preparer may need, so research your options thoroughly before laying out the bucks.
• Are you feeling bumfuzzled? If you are totally stressing over the whole thing and you have complicated tax issues, such as stocks, bonds, losses and gains or refinancing or selling and buying a new home, then you may want to use the services of an expert. The deluxe or business edition of tax software may cost you around $100.00 and the skills of an expert may cost you two to four times that, but when you consider the time involved, which can be hours or days, and the possibility of paying more taxes than you actually owe, or worse-the possibility of making a mistake in your favor and having to pay additional penalties, it may be well worth the expense. A reputable tax preparer will also stand by your side if an error is made or if you are called up for an audit. If you are going to one of the chain tax preparation companies, definitely ask this question up front. It may cost you more to have audit support and someone to share the blame with, but that is also a judgment call and one to consider carefully.

As a whole, tax preparation software should make it much easier to file your taxes. The really good news is that in most cases you can now start and prepare your return without paying a dime, only paying when it is time to file. If, in the middle of the preparation you find that your taxes are too complicated, you still have the option to go to a professional, though if you’ve waited to the last minute, finding an available pro may be a challenge in and of itself.