Income Tax programs are becoming more popular as more people rely upon their computers for recording and tracking their personal and business finances.
Doing your taxes on your computer can be done three basic ways.

• First way is to go into a office supply store and buy the program off the shelf.
  
• Second is to download the program over the Internet and load it on your computer.
  
• The third way is different from the first two in that you actually do your taxes over the Internet at an on-line tax program site.
  

The first two will keep your information on your computer where only you can access it whereas the third will save and store your information on-line at the tax site.
All three ways can be used to e-file on line.
Cost wise, the program you buy in the store will be the most expensive, followed by downloaded programs and then on-line sites.
  The cost differences can be fairly substantial.
So What Are The Dangers? Connecting to the Internet at any time can be dangerous if you don't have the proper anti-virus programs and firewalls installed.
If you download a program over the Internet you should make sure that it is from a reputable site.
The danger with on-line programs is that you are sharing info back and forth that is only as safe as your connection.
Plus there is the potential dangers of having the on-line companies security breached and your confidential information being accessed that way.
But even if you did your taxes by hand and delivered them to the post office in person there is no guarantee that someone won't intercept your information along the way.
Each option has it's unique problems and dangers.
Which way is best for you? Only you can answer whether tax programs are a good alternative with which you are comfortable but you can minimize your risks by keeping your anti-virus and firewall systems current and working.
Then make sure that you only deal only with companies that are reputable and well regarded.