It’s that time of year once again. If you are one of the millions of Americans that cringe at the sight of a W2 form you are not alone. It is estimated that nearly 80% of Americans turn to tax preparation services each year. Many of us choose to let someone else prepare out taxes for a variety of reasons such as convenience and knowing that your taxes are prepared correctly so that the IRS doesn’t flag your return. Which tax preparation service should you trust to handle your taxes this year?
If you were to perform a search you will find hundreds of people that are willing to prepare your taxes for a nominal fee. Tax preparation services will gladly prepare your taxes and charge you a rate according to the complexity of your return.
If you reside in California there is something that you should know about the person that is preparing your taxes. Unlike many other states, California requires tax preparers to take educational courses and be license before they can legally prepare taxes. This should be the first credential that you should check before letting someone do your taxes.
One of the best ways to hire a tax preparer is to ask around. Ask your co workers, friends, and family who they use to prepare their taxes and what level of satisfaction that they have achieved using this person or company. If you are interested in using a large company such as H&R Block or Jackson Hewitt remember that you sometimes get what you pay for. Many of these employees have taken a crash course on tax preparation and use a computer program to guide them through the process. They often miss items that a quality accountant would notice. You may save a couple hundred dollars using this service, however, in the end you could have missed out of potentially hundreds or thousands in deductions.
If you are considering using a large tax preparation company you may want to consider filing your taxes online through one of the many online e-filing companies. You can either purchase tax software from retailers such as Walmart or can use a website that offers online tax preparation. If your taxes are simple (no dependants, one source of income, and no deductions) I would recommend this method.
Whichever way you choose to file your taxes this year, make sure that you know who you are dealing with. Be aware of online scammers and fly by night tax preparers. Remember, you are ultimately responsible for any mistakes that are made on your taxes.
Author: Carla Kessler
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