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This year, why not try online state tax preparation and filing? If your state requires that you pay state income tax, you already know that you will have to complete a second, separate form for that purpose. One of the best advantages to the online filing process is that you will use the same tax documents to support both Federal and state returns. Your online Tax Preperationvendor can simply download that information from your Federal return onto your state form. In addition, many vendors offer package deals. Charges for online tax returns are based on the complexity of the forms you need to use, but, no matter which form you use, the state form is always considerably easier, and you can usually get that one done at a much lower rate. Your vendor will also be able to let you know whether your state will accept online filing.

Once you've completed your Federal form, you will be asked if you need to file a state form. Be careful about your answer. For example, if you are a resident of a state that doesn't require a state form but worked for part of the year in a state that does, you will need to file a state form for the state where you worked. One good way to determine this is if you have received a W-2 from a place where you worked over a summer or for a few months. In some cases, you may not have received a W-2, but may still owe taxes on tips. Most of the states that accept online returns will also accept payment of taxes online. They will generally designate several acceptable credit card types for your convenience. They may also offer you the option of paying with an electronic check (direct debit) with your approval.

About the Author: Todd William is the web master and owner of Tax Refunds which is an excellent source to prepare and e file your Income Tax Return Online and to Get Maximum Fast Tax Refund