Making Taxes... Less Taxing
Posted: February 19th, 2008 @ 6:14pm
Source: The Ethridge Team Times- February 2008
While there is no escaping filing taxes, you can choose how you prepare your return. Hiring a tax professional to prepare your taxes could save you money in the long run on deductions you might have missed. Filing out the forms yourself will spare you tax preparation fees, but it is more time-consuming and generally yields diminished returns. When in doubt, hiring a tax professional is always the most prudent decision.
Hiring A CPA
If you are itemizing your deductions or you expect your tax return to be complicated, consider hiring a tax professional. It is a good idea to ask friends or family for a referral. A professional tax accountant is trained to understand the intricacies of the tax code and can help find ways to maximize deductions and minimize penalties. Tax preparation fees are tax deductible and often recouped. Remember that you will want to take time to organize your records and receipts to make the professional’s job quicker and easier. In most cases, your tax preparer can provide you with a tax organizer for you to fill out in advance.
Preparing the Forms Yourself
This is the approach to take if you expect your return to be relatively simple. By preparing your own tax return, you take the time to work through your tax situation, review your documents, fill out the forms and file the return with the IRS. Keep in mind that this process is relatively time consuming, and although you will save on tax preparation fees, you may omit valuable deductions and exemptions.
Mixing it up
A third approach is to prepare the forms yourself and have a CPA review the documents for you. They will be able to double-check that you have filled out the tax return correctly and haven’t missed any deductions. This process could result in lower preparation fees, but also keep in mind that a poorly prepared from will need to be amended by a CPA and could cost you time and money in the long run. Another alternative is to hire a tax professional and closely observe the process and attempt to complete a portion or all of your taxes next year while using the professionally prepared return as a guide.
