Tax Software vs. Accountants: Who Will Save You More?
When tax time rolls around, the inevitable question is how best to get your return done this year?
Should you do it yourself?
Should you use tax software?
Should you hire an accountant or tax professional for help?
The bottom line, of course, is trying to determine which method will save you the most. How do you know? Well, here are some scenarios to help you figure out what will work best for you!
If Your Return is Simple
If your tax return is fairly simple and your income comes from the same place year after year, you deduct items like mortgage insurance, some charitable donations and perhaps some interest from student loans, tax software should easily be able to handle your return. With prices starting around $49 and the fact that you can file your federal return for free, you should not have to spend upwards of $200/hour on an accountant if your return is straightforward.
If You Have Some Basic Tax Knowledge
Given the fact that tax software is easy to use and does a decent job of making sure that you do not forget big ticket deductions and credits, you will likely be okay using tax software even if your return has some complex elements. So, if you have a general sense of tax law and feel confident navigating the software, save yourself some money by doing it yourself.
If You Are Not Comfortable With Finances or Doing Your Return
Some individuals or couples simply are not comfortable doing their own return or do not have the time (or patience). In these cases, regardless of the complexity of the return, it is likely wise to get some support. You can choose to use a “walk-in” service, where the tax professional will simply enter your information like you would have, or you can work with a CPA or tax firm that will review your materials and make recommendations on your return.
If Something Big Has Changed This Year
If your marital status has changed, or you have become self-employed, you may want to spend the extra money and enlist the aide of an accountant or a reputable tax firm. This type of tax support is more than just entering in your information; they can help by looking at the grey areas of your return and advise you about places you can save, while staying carefully within the tax laws.
If Your Return is Complicated
If your tax return is complicated because you are self-employed, you are a real estate investor or are subject to the alternative minimum tax, you may be best served by partnering with an accountant or tax firm on your return this year. The more complicated your return and the more money you make, the higher your risk for audit—and your audit risk is another important factor for how you decide to complete your return. You may want the peace of mind that a professional worked on your return and can help you in the event that the IRS comes calling at a later time.
Success Tax Relief can help you with a complicated return and protect you in the event of an audit. With more than 30 years of experience working with the IRS on behalf of our clients, we have the experience to help you save as much money as possible this year. Give us a call at 1-877-958-6638 and discover how