Tax Preparation Software or Tax Preparer?
The difference between a program and a professional.
There is at least one absolute fact in this world: Everyone must pay taxes. Every year, Americans spend the first quarter of the new year gathering paperwork for the incoming tax season. Most Americans have their taxes prepared by someone else. Who can blame them? Filing your taxes is mental gymnastics if you don’t know what you’re doing. At least until tax software was developed. It opened up the doors for any taxpayer to file their taxes without questioning too much of what it all means. Fill in the boxes and you get your refund! Taxes made quick and easy.
Now hold on. Quick and easy taxes may sound like a great dream, but quick and easy doesn’t always mean you’re getting the most out of tax filing. That’s why a tax preparer is still used today.
Now hold on. Quick and easy taxes may sound like a great dream, but quick and easy doesn’t always mean you’re getting the most out of tax filing. That’s why a tax preparer is still used today.
The Complexity of Your Finances
Tax preparation is more involved than tax software, but it lets you have a personal discussion with a professional who will listen to you. You bring all your applicable papers such as your W-2, your receipts from charity organizations, educational papers, etc. They look through your finances to determine what deductions and credits you qualify for. Your complex financial situation increases the likelihood of you making mistakes. Tax mistakes are costly and the IRS does not accept “I didn’t know” as an excuse.
With tax software, you are asked general questions about your life that may or may not relate to you. Unless you know what tax codes you’re looking for, you may miss out on valuable insight that a tax professional provides. The more complex finances require more industrial software that is more expensive and you still have to do your tax return yourself.
With tax software, you are asked general questions about your life that may or may not relate to you. Unless you know what tax codes you’re looking for, you may miss out on valuable insight that a tax professional provides. The more complex finances require more industrial software that is more expensive and you still have to do your tax return yourself.
Schedule
You rely on the schedule of your tax preparer. Relying on their schedule could potentially cause you to be late filing your tax return. Tax season is busy for many tax service companies so unless you make an appointment early, you may not file on your terms. On the other hand, it is your responsibility to make an appointment with your tax professional. A tax professional will save you time and money in the long run, especially if you have questions. Sure, you can ask the IRS, but you’ll likely end up waiting on hold for several hours. It is IRS policy to hang up your hold call after 4 hours. Be diligent with your scheduling and follow through with your tax preparer. They want to help you!
One of the cool things about tax software is that you don’t have to rely on anyone’s schedule except your own. The IRS estimates that it takes the average taxpayer about 20 hours to file their tax returns with deductions. Set enough time aside for you to solve your tax problems if any. Your taxes will always be your responsibility regardless of who or what did them for you. Always finish your return before the deadline that way if you do have questions your tax software can’t answer, you’ll have time to contact a tax expert.
One of the cool things about tax software is that you don’t have to rely on anyone’s schedule except your own. The IRS estimates that it takes the average taxpayer about 20 hours to file their tax returns with deductions. Set enough time aside for you to solve your tax problems if any. Your taxes will always be your responsibility regardless of who or what did them for you. Always finish your return before the deadline that way if you do have questions your tax software can’t answer, you’ll have time to contact a tax expert.
Cost
The costs between a tax professional and tax software differ depending on how complex your taxes are. Even the most expensive software is less expensive than a tax preparer. It also depends on what the cost is worth to you. Some people may think paying the extra eighty dollars for a tax preparer is worth the time and effort. Keep in mind that a tax professional offers extra features that tax preparation software cannot. They can answer questions on the spot, your past tax returns can be reviewed to ensure all your taxes are done correctly, and they lower your tax liability if you’re audited. You also have year-round access so you may save on tax money at any point and make the right decisions.
A tax professional has more to offer to you, but ultimately it depends on what you think which preparation service is worth it to you.
A tax professional has more to offer to you, but ultimately it depends on what you think which preparation service is worth it to you.
Future Proof Finances
As we said before, tax mistakes are costly. You can receive fees and penalties that could’ve easily been avoided if you had the correct guidance. Tax software doesn’t give you that guidance, but a tax professional does. You future proof your taxes and you receive peace of mind as tax season nears. You don’t need to worry about utilizing the correct software or worry about doing them on your day off or after work because a tax professional will have what you need to file your tax return the right way. You gain confidence in your finances.
How We Can Help
America’s Choice Tax Relief offers tax preparation services to all taxpayers and businesses. All of our tax professionals are certified to maximize your deductions and credits for the best refund possible for you. Make an appointment with our team and sleep easy as we do your taxes for you.