You can complete your individual tax return (Form 1040) online with income tax software. When choosing an online option, be sure to have all of your documentation ready, including your W-4s, 1099s, interest income, mortgage interest paid, plus Social Security numbers of you and your dependents. Most of the online software will guide you through the process of filing and figure your taxes for you as you go. In some cases, you will see instant notification of your potential tax; in other cases, you will need to wait until most or all of your information is entered.

TurboTax

Created by Intuit, a leading business software company, TurboTax filing software allows you to file your taxes online and efile for free. The free edition offers you the opportunity to prepare a 1040EZ, which is considered a simple return. If you plan to use any forms other than a 1040EZ, you will need to purchase the appropriate package. Prices begin at about $50 for a federal return that includes deductions and can run as much as $110 for a return that includes a corporation, partnership, or LLC. The state return is an additional charge and begins at about $30 for the 1040EZ. Prices increase with the complexity of the return. You may create a free preview of your tax return using TaxCaster, located under "Get Ready for Tax Time." For this calculation, you input your marital status, income and other relevant information. You will be provided with an estimate of your tax refund or balance due for the year. This is an estimate only and should not be considered a finalized amount. Visit TurboTax at turbotax.intuit.com for complete details and tax filing software and downloads.

TaxAct

TaxAct Online can guide you through the process of figuring and preparing your Federal and State income tax online. The software was created by CPAs and other professional accountants. TaxAct has been available online since 1998. The site offers step-by-step directions to input your personal information and dependents, itemized deductions, other income and deductions, and federal and state tax information. An online tour gives you an example of how to file your return and lets you know what documents you need to be prepared. Tax questions are answered through the help center. The site is secure and ensures you that your data will be transferred in a timely manner. The free edition of TaxAct allows you to file your federal tax electronically. There is a charge for filing the state return. Rates begin at about $15. Visit TaxAct online at taxact.com

TaxCut

H&R Block offers an online version of its software if you prefer to do your own tax filing, instead of visiting a tax preparation company. The software is marketed under TurboTax or TaxCut. A very basic federal return can be filed for free, but there is an additional charge for the state return. In general, the cost for a state return begins at around $30. If you are a homeowner, bought or sold stocks and bonds, or have another complex return, you will pay a fee starting at around $30. The state is an additional fee. If you are self-employed or own rental property, expect to pay at least $50 for online filing, plus the additional state fee. Online tax preparation is available at an additional charge of around $100. Visit H&R Block online at hrblock.com.

Local Taxes

You may live or work in a city that imposes a local income tax on your wages. In general, tax preparation software does not include local (city) income taxes. This is due to the wide-ranging disparity of local income tax rates, even in neighboring cities. However, many cities will complete your local tax form for free. Contact your city's tax department for further details.

Source:

TurboTax

TaxAct

H&R Block: TaxCut