1040.com is an online tax filing website that helps individuals prepare their taxes. It promises 100-percent accurate calculations and the maximum refund possible.
Let’s explore what this tax software has to offer, so you can decide if it’s right for you.
How 1040.com Works
1040.com is completely automated and will take you through every step of the tax return filing process. You’ll start by providing your personal details by answering some interview style questions.
It’s advisable to have your W-2s and other tax documents at hand to make things easy and quick.
The software will take the provided information and determine all the deductions and credits you’re eligible for. You’ll also be given the option to file your state taxes if applicable in your state.
The information you provided when answering these interview-style questions will automatically transfer to your state return, saving you the stress of providing the information again. Then, the software will run an accuracy check on both returns to ensure everything is correct.
Once complete, you’ll electronically file your tax returns making the entire process simple, smart, and seamless. If you qualify for a refund, 1040.com gives you several options to receive it, including direct deposit.
This software is designed to do all the heavy-lifting for you. It handles all the calculations. You only need to enter the correct information. If you encounter any problems along the way, 1040.com’s Tax Guide will come in handy.
The guide serves as an instruction manual for your tax return. It will walk you every step of the way to ensure you enter the correct information.
This software is designed to provide you with the information you need for virtually every tax situation you’d encounter when filing your return in easy-to-follow simple language—no complicated legal jargon.
Moreover, 1040.com gives you three ways to find help through the software service. In case you need help, you can:
- Search the knowledge base for articles that relate to the problem you’re facing
- Contact customer support through live chat
- Contact customer support through email
The Error Checking feature of the application can’t go unmentioned. If the system identifies any errors, it flags them and allows you to go directly to the item in question and make necessary revisions.
Moreover, the software gives you the opportunity to review your tax return manually via downloadable PDF federal and state tax forms.
Support for Clean Water Projects
If you would love to impact the world with your tax prep fees, 1040.com gives you that opportunity with their Clean Water initiative.
For every tax return filed using the software, 1040.com donates $2 to Healing Waters International, a non-profit organization that invests in clean water projects across the globe.
That’s a tidy sum of money if you consider the fact that Drake Software, 1040.com’s parent company, processed at least 15 million federal tax returns through its different tax applications in 2017 alone.
1040.com offers three distinct packages. However, you don’t need to choose a particular package before you start filing your tax return. As you progress through the steps of the filing process, the software automatically switches you to a lower or higher version depending on the complexity of your return.
At the end of the process, you’re given your final cost based on that complexity. Let’s take a detailed look at the three plans available:
If you are single, married, and are claiming no more than $100,000 in taxable income, this plan is ideal for you. It won’t work well for you if you have dependents or if you are thinking of itemizing your deductions. It is designed for individuals whose tax situation is simple and straightforward.
1040.com’s free version is also a great option if you are claiming the Earned Income Tax Credit or if you are reporting income from W-2 wages, interest under $1500, or other less common income sources like taxable grants.
The $24.95 Plan
If your life is somewhat more complicated, in that you have dependents, investments, and home ownership taxes to think about, this would likely be the best option for you. In addition to the features offered in the free version, this plan also allows you to itemize your deductions.
With this package, you will get support for tax credits and deductions related to kids and dependents, retirement savings tax credits, retirement income, as well as other deductions such as:
- Educator expenses
- Moving expenses
You’ll need to pay an additional $19.95 for each state tax return.
The $44.95 Plan
If you are a freelancer, a contractor, or self-employed in any other way, this plan will work well for you. In addition to the benefits you get with the $24.95 plan, you’ll also get to enjoy the following perks:
- Ability to report taxable income exceeding $100,000. It’s advisable to take up this plan if you a high-come filer, even if you are dealing with simple tax situations.
- Ability to report income if you are a self-employed individual who needs to file Schedule C. This plan also supports schedule K-1, so it can come in handy if you get revenue from a partnership
- Support for income earned as a trust or estate beneficiary.
This plan also allows you to report income from less common sources such as gambling winnings and rental income. It also supports less common credits and deductions. Moreover, this version allows you to report any cash tips that you might not have reported through your employer.
You’ll need to pay an additional $24.95 for each state tax return with this plan.
1040.com is relatively new compared to other online tax prep services. These three companies are some of the top alternatives:
- TurboTax – Probably the best known name in tax software, TurboTax is a top competitor for all users.
- Jackson Hewitt – Well known for their local services, Jackson Hewitt Tax Service is now offering online solutions.
- eSmart – Not as well known as others, eSmart offers low cost tax filing options.
Pros of 1040.com
- Competitively priced plans compared to its competitors
- Mobile-friendly, user-friendly interface
- Allows you to pay prep fees with your tax refund
- Loads of educational and help content
- Limited customer support
- The free plan is quite limited
- Poor capabilities for importing information from prior years
1040.com is designed with the consumer in mind and hence will give you great peace of mind when it comes to filing your tax returns. Besides its range of valuable features, it also provides plenty of information to ensure you understand what you are doing throughout the tax filing process. Moreover, the software has prices that are very reasonable for complex tax filing situations.