Tax preparation software can help prepare and file your taxes by _________.
A. Making an appointment with a tax expert for you
B. Posing questions to collect necessary information
C. Calculating your taxes based on your savings account balance
D. Providing you with blank tax forms you can fill out
Answer: B. Posing questions to collect necessary information
Before software calculates your tax liability, it follows a predefined algorithm. This algorithm must be fed with information for the tax calculation software to decide the tax bracket you fall into. The accuracy of tax liability that a tax calculation software populates depends on the quality of input information you give to such a tool.
A tax calculation software will ask you question prompts that it uses in its algorithm tax calculation. When using any tax calculation software, provide it with the most accurate information.