Although you know when tax season is coming, you may not always be prepared for it. If you're a brand new business or have a limited budget, you may not be able to afford accountant, which means you may be stuck doing your taxes on your own. Thankfully, with your smart phone or tablet — and the right apps — tax season doesn't have to be a headache. Here are seven free mobile apps to help you stop stressing and start filing.
1. IRS2Go (iOS, Android)
This is the official mobile app of the IRS and is great for new business owners who want verified and expert tax advice right from the source. With IRS2Go, you can check the status of your federal income tax refund, make a payment on any taxes that you end up owing, and get free tax preparation assistance from an IRS Volunteer Income Tax Assistant in your area. You can also request tax return information and account transcripts through the app.
2. H&R Block Mobile (iOS, Android)
The H&R Block mobile app connects you directly to tax professionals to make the filing process easier. You can take a picture of your W-2 and the app will instantly import your information. You can upload any other documents and send them to a tax pro. The app can also created a personalized checklist of required documents, and lets you view tax returns from previous years. In addition, the app lets you check the status of your federal tax return, and estimate the amount of your return with a built-in calculator. If you are constantly switching between devices throughout your day, this app lets you go from your phone or tablet to your computer and back again with ease.
3. TurboTax (iOS, Android)
Intuit's TurboTax walks you through the process of filing your taxes. You snap a photo of your tax documents and the app coaches you through every step of the filing process, double-checking to ensure that you have entered all information correctly. You can be connected with an expert live and on-screen to get answers as soon as you need them and when you input all of your information, it is saved with secure encryption and always password protected. TurboTax also checks for deductions and credits, and once your return arrives, it gets stored in the TurboTax Cloud. TurboTax is free to download, but there are costs for federal and state filing.
4. TaxCaster (iOS, Android, Windows Phone)
This income tax calculator by Intuit allows you to accurately forecast your federal income taxes before you file to see how much you may get back, or how much you may owe. Just enter the basic information about your lifestyle and business, and TaxCaster will make the estimations based on that information. Since this is an Intuit product, the app uses the same tax calculator you'll find in the desktop version of TurboTax to provide the estimates. Based on the information you provide, it can also recommend a product to help you complete the filing process.
5. Shoeboxed (iOS, Android)
With Shoeboxed, keeping your receipts, bills, and other financial documents organized is as easy as taking a picture. Once you upload your document in the app, it automatically spots the important information, such as vendor, date, total and payment type. This then creates a fully searchable digital database of your transactions. For small business owners, Shoeboxed will pay off at tax time. The app can save you time and money by managing your paper documents for you, as opposed to needing to hire someone else to do it.
6. Evernote (iOS, Android, Windows Phone)
Evernote is more than just your run-of-the-mill note-taking tool. It also offers a way to manage the documents you'll need to file your taxes. Because Evernote lets you easily store and organize images, you can scan in your receipts and then trash them, and since the app can read printed text, it's easy to search for a specific receipt. To get your receipts into Evernote, there are two options: The ScanSnap scanner is the pricier option, but it is made by the Evernote developer, so it will directly scan high-quality images and automatically uploads them to your Evernote account. For a cheaper option, there is the DocScanner app for iOS and Android, which you can use to "scan" in receipts by snapping a photo with your smartphone or tablet.
7. iDonatedIt (iOS)
Charitable donations are tax-deductible expenses and can reduce your taxable income to ultimately lower your tax bill. Tracking your donations throughout the year can be a hassle, but apps like iDonatedIt are there to help. The app streamlines the process by helping you document your donations quickly and easily. Whenever you donate a non-cash item to charity, use the app to track the donation date, the charity you donated to and the fair-market value of the item. By tax day, you will have a complete and permanent record of donated items that meets IRS compliance requirements. You can also attach photos of donated items and email the detailed donation report to yourself, or an accountant.
Photo credit: Shutterstock
Theresa Todman, Managing Partner/CEO of B&M Financial Management Services, LLC . Theresa specializes in bookkeeping, accounting, QuickBooks solutions, small business tax issues and consulting.