With tax season just couple short weeks away, the hot topic of discussion is the argument of professional tax preparation vs filing taxes online.
We are all familiar with sites like Turbotax, who offer the capability to file your own taxes in less than 30 minutes, and if you have a simple tax situation: (W-2, single, no dependents) e-filing might be right for you. However, it isn’t always so simple.
Let’s have a look at some of the reasons for choosing a professional for your tax preparation.
Tax Prep is Not Always Simple
If your tax prep needs are basic and straightforward… you could probably get away with filing your taxes yourself, according to Anne Daily, MDA, and CEO of Excellent Admin…
“There are tons of small tax write-offs that can slip through the cracks, especially if you aren’t a trained professional.
Tax programs are great, but they are sure to miss a couple of obvious deductions as well. Taking the time to sit down with a tax professional is more than worth the upfront cost because your return will reflect so much more”
If you are a small business owner, contractor, have children or other dependents, have 1099 income or any other more complex tax preparation needs, you’d definitely be better off contacting a tax preparation professional like Excellent Admin.
Tax Law is Confusing
Professional tax prep is a premium service…
The in’s and out’s of tax law can be a potential quagmire to most people. Tax law is often hard to understand, and is written in less than simple language. Additionally, there are tax bracket and deduction changes every year, which can make things a lot more difficult for people trying to file their own taxes.
Tax Professionals are required to take at least 24 hours of training to stay up to the law’s standards in regards to tax preparation compliance. If you don’t know what you’re doing, you will produce a visually stunning, yet worthless tax return. And when it’s all said and done you want to get the most out of your money, don’t you?
By being knowledgeable and up to date on tax law, professional tax prep can save you potential fortunes in the long run and Excellent Admin offers Quarterly Tax Prep starting as low as $50, which is a very low price to pay for the peace of mind that comes from not having to stress over a potential tax audit.
Time is Money
Whether your tax return is a simple or complicated…
If you file your own taxes, there’s plenty of room for mistakes. If there’s one place you don’t want to leave room for error, it’s on your taxes.
According to this blog from Smartasset.com… “Doing your own taxes shouldn’t be too difficult if you’re single and you’re filing a standard tax return. But if you run a business or your tax situation seems complicated, getting help from a tax professional could be worth considering.”
Most tax prep services offer tiered packages for both simple and complex tax situations. which in any amount, is a low price pay to avoid costly IRS-induced stress. And just like making an illegal u-turn, ignorance of tax law is not an acceptable excuse in an audit hearing.
Nobody Wants to be Audited
If you’re a contractor, small business owner, and have more to consider than a salaried job and rent, you never want to leave any margin for error when it comes to filing your taxes. And choosing a Tax Professional is the key to saving yourself thousands of dollars and avoid the potential devastation of an IRS Audit.
The IRS reported according to statistics, that 60 percent of Americans use a professional tax preparation service to help with their yearly tax filing. Why? Because Tax Preparation Professionals are required by law to take at least 24 hours of continuing training each year, to maintain compliance with the ever confusing, and constantly changing Tax Law.
This means that your margin of error is essentially eliminated, and you’ll be able to file without too much headache…
Spending Now can Pay Off Later
Even if your return is simple…
it will definitely be rewarding to hire a professional, especially if you think you’ll be in a different fiscal situation in the coming year.
If you’re switching employment, buying a new house, planning to invest in stocks and bonds, or anything else that will alter your return for next year, a professional tax consultant can help you plan ahead.
“They miss the opportunity for great advice.” According to Eisenkraft. “Even a taxpayer who doesn’t currently have a complex return may not understand the benefits of a 401(k). I can show them the difference in what the tax return could look like, as well as point out benefits for the following tax year.”
While preparing your own taxes may be more cost-effective, especially in the short term, it only takes one error to potentially cost you thousands of dollars in fines and fees. Make the informed filing decision this tax season and hire someone who is qualified and knowledgeable.
After all, you want reliable and hassle-free professional tax preparation, don’t you?