Tax Tips: The Easiest Way Ever to File a Tax Return
Snap. Your taxes have been filed.
It can be almost that easy, especially for students (without loans) and young folks in their first job. All you need do is snap a photo of your W-2 with a smart phone, fill in some basic personal information and push send. Done. The whole process takes just minutes, thanks to a new app from Intuit.
For now the app, called SnapTax, only works with an iPhone or Android, and only for folks who are eligible to file the 1040EZ form. But broader applications aren't far away, and EZ filers are no small group -- they account for 60% of all tax returns.
No question: this app is aimed at young people who are comfortable with mobile banking and who conduct other personal business on their smart phone as well. Typically they would turn to their parents for help at tax time, or spend around $200 to have a tax preparer fill out their forms. Given that typical EZ filers get about a $500 refund, that's a stiff price to pay for professional help.
SnapTax, which costs $19.99, is designed to make EZ filing affordable, as well as quick and simple. "We are always asking, 'Where's the hassle? Where's the pain?'" Intuit founder Scott Cook told me after a short demonstration, adding that his broad goal for most filers is a 10-minute tax return. The initial response to SnapTax has "blown through" internal projections, he says. When you are done you can even choose to receive a physical check or have the refund deposited directly at your bank.
I don't write a lot about gadgets and software, even ones that simplify personal finance because there are so many and they change so fast. But I'm drawn to an app that makes doing taxes a breeze, especially for young people who may be paying too much for help just because they think this has to be tough.
Is SnapTax right for you or your young adult children? Aside from having the right phone, which is an unfortunate expense if you're not already all tech-ed up, you must first meet EZ filing criteria. That means you must:
- File "single" or "married filing jointly"
- Claim no dependents
- Claim no student loan interest or the tuition and fees deduction
- Be under 65 and not earn more than $100,000
- Have no income other than wages, tips, unemployment compensation, taxable scholarships and grants, and have taxable interest income of less than $1,500
Photo courtesy Flickr user aidanmorgan
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Daniel J. Kadlec is an author and journalist whose work appears regularly in Time and Money magazines. He is the former editor of Time’s Generations section, which was written and edited for boomers. Kadlec came to Time from USA Today, where he was the creator and author of the daily column Street Talk, which anchored the newspaper's business coverage. He has co-written three books, including, most recently, With Purpose: Going from Success to Significance in Work and Life. He has won a New York Press Club award and a National Headliner Award for columns on the economy and investing.
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