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Tax time goes digital

As the world becomes increasingly immersed in technology, one of the few sure things in life taxes is following suit.

If you're the type to complete your own tax forms, you've always had two options: Paper forms, or utilizing software that walks you through these same forms. You can still find paper forms at area libraries and state representatives' offices, although selection may be limited."We do get a lot of requests for forms, starting as early as December," said Becky Wanamaker, the librarian at Lehighton Area Memorial Library. "Between phone calls and people coming in, we see 10 to 15 people a day looking for forms."She noted that as patrons' financial situations become more complicated, they are increasingly asking about alternatives to paper forms."We've been getting a lot of questions about the other options and what they can do," said Wanamaker. "You can see it starting to taper off, as more people are going online or using other options, but there's still a demand for paper forms. It's people who would be really uncomfortable going online, or trying to print them on their own."More than 90 percent of federal income tax returns are now filed online. This includes more than 30 million "do-it-yourselfers" who used at-home tax preparation software and an additional 50 million filers who paid a tax professional to file their return online.At-home tax preparation software is also the most rapidly growing method of tax preparation. If you have basic computer skills and can read and follow instructions, you can save a substantial amount of money by filing your own taxes online, said tax software experts."It's easy, safe and accurate. You can avoid waiting in line or making an appointment, and can do your taxes any time in your own home," said Lisa Greene-Lewis, a CPA and tax expert with TurboTax.Greene-Lewis noted that 60 million taxpayers have a "relatively simple" tax return and use the 1040 EZ or 1040 A, the federal government's simplest returns. These people are the most likely to benefit from using tax preparation software."A lot of these people are spending too much money to get their taxes done," she said.What you'll payWith the average professionally prepared simple return now costing $159, and itemized returns costing more than $250, it certainly pays to explore your options.The cost for tax preparation software ranges from free to more than $100. Cost typically depends on the complexity of your return.You can find tax preparation software at most major retail and office supply stores or through the software company's website. Many taxpayers will also qualify for free e-filing through the IRS federal Free File Alliance at

freefile.irs.gov.The federal Free File program allows eligible individuals and families to use free tax software from companies such as TurboTax, TaxAct, or H&R Block to complete and electronically file (or print and mail) returns.TurboTax software costs range from free to $79.99, said Greene-Lewis, with the free version best suited for those with a simple return who don't plan to itemize.For homeowners who plan to itemize, or taxpayers who have investments or a small business, rates begin at $34.99."It's still much cheaper than going to a tax store," she said.She noted that most software websites, including TurboTax and the Free File Alliance, can guide you to the right software program for your financial situation through a series of questions. It's also important to pay attention to the fine print. Some companies will charge additional fees for each form used.What you'll needAfter finding the right tax preparation software, all you'll need is a computer and Internet access. (You can also print and mail most completed returns, although you'll receive any refunds more quickly using e-file.) Some tax preparation companies will also allow you to complete and file your return on a smartphone or mobile device.What you won't need is in-depth knowledge of the United States' tax code, said Greene-Lewis. Most software programs will walk you through each form and step of the tax preparation process, using simple questions like "Have you had a child in the past year?" or "Do you have any business income to report?" to guide you to the correct forms."We're up to date on the tax law, but you're not required to know the details of the tax law," said Greene-Lewis.She noted that most companies offer customer support and access to a tax professional who can answer any questions, although support levels vary per company and software package. For example, TurboTax offers basic chat support for all customers, including Free File customers. Phone and chat support that includes access to CPAs and tax experts is typically limited to paying customers."You're empowered to do your taxes yourself, but if you have questions, on every page of the tax return there is an option to see answers to the most common questions," she said. "If it doesn't answer your question, you'll have the option to use chat or phone."Additional benefitsIf you choose to file electronically with the same company each year, you may also be able to save and upload information from last year's return. Returning customers can save personal information such as name, address, and life situations.When you file your federal return online, you'll usually have the option to roll your federal data into your state tax e-return."We're taking the data we already know from your federal return, and making your state return easier for you," she said.

STACEY SOLT/SPECIAL TO THE TIMES NEWS