The 2011 tax season is here, and as the laws keep changing, it can get very confusing and frustrating to do your taxes. But did you know there are free online resources that allow you to file your taxes and e-file for free? H&R Block has a great and free service that allows you to file your federal tax return online. The good news is that you don’t have to wait for your W2 to come in the mail. If you have your last paycheck stub from 2011, and you worked at the same job the full year, then that is all you will need to file your tax return.  The software is really easy to use, but make sure you have your last paycheck handy and your dependent’s information like social security numbers and date of birth. The software walks you step-by-step through the process  and will even check your return for errors before you file. What is really convenient is that it will allow you to e-file your refund and get your tax refund faster. Now keep in mind I live in Texas and all of this info is for a federal tax return, as we do not have a state income tax. So the information for state tax returns may vary significantly.

That being said, it is really quick and easy to file your federal tax return online, starting now! Your last paycheck should have your total income, contributions to 401k, taxes you paid, social security taxes, etc. Most of the information you will need is there already. Depending on your filing status, and on the deductions you are wanting to take you may not be able to complete your filing online right away. There are some forms that are not available yet. For example tax  form 8863 will not be available until January 14, 2012. If you’re interested in claiming the American Opportunity Credit or Lifetime Learning Credit, you will have to complete this IRS tax form, so your refund may be delayed.

If you have a fairly simple tax situation, a lot of the time it is easier to do it yourself online, and you can also go to a local H&R block office to have a tax professional review it before you submit it, to make sure you get the maximum refund. This solution is recommended if you have had the same job for the full year and have a fairly simple return. However if you have a home based business, lots of properties, or invest a lot of your money, it is usually better to consult with a tax professional. Usually they will be able to complete your tax return with your last paycheck stub as well. Be careful of companies that try to give you a “loan” until your tax refund arrives, these loans usually have high interest rates and are not recommended unless you really need the cash right away. Also make sure that you do a direct deposit to your bank account, even if it takes a little longer, sometimes companies will try to talk you into getting your tax refund through a debit card they provide you. That is not usually a good idea, since if you lose that card, your money is lost. This is profitable to the companies because they make a certain percentage when you use the card at retailers. Tax season doesn’t have to be a hassle and you can make it pay off to your benefit.