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Is it worth the money to pay a tax preparer, or is just as effective to use do-it-yourself tax software?

2007-01-21 04:35:53 · 7 answers · asked by self_addressed_stamped_envelope 1 in Business & Finance Taxes United States

7 answers

Depends on your patience level.

2007-01-21 05:36:43 · answer #1 · answered by justbeingher 7 · 0 1

If you own a business, it's probably worthwhile to consult a CPA at least for the first year, so you know what kinds of records you have to keep and what you can deduct. And if the business or your personal return is very complicated, might be worth paying a preparer in future years also.

If you have a reasonably normal situation, then tax software should work just fine for you. This would include having kids, a house so you itemize, an IRA or a 401K at work, and investment purchases and sales like stocks or mutual funds - these are not really complex as far as tax software goes.

2007-01-21 05:28:22 · answer #2 · answered by Judy 7 · 1 0

They did value you for the provider you asked them to do. once you took your paper to the place of work, it grow to be a freelance you're obligated to be sure and finished fill. rather, you're able to desire to have asked that place of work to furnish you returned your papers as quickly as they point out the quantity of the cost. The seventy 5 money are very very low-value cost, you mustn't have surpassed that grant by skill of doing all your return by skill of your self. bear in mind right here: you're no longer expert tax preparer, you're able to leave out some credit the place the tax preparer does no longer. you will come across a low-value internet site does your Fed tax return, even though it won't do the State the place you on the top will and could record the state and this isn't for unfastened. Tax experts can no longer do the state return manually till they do the Federal return first. as a result, in case you visit do the state return, they nonetheless could desire to do the Federal return first with a view to do the State the place they are going to value you for the time and artwork.

2016-11-26 00:09:27 · answer #3 · answered by ? 4 · 0 0

They have their pros and cons.

Tax preparers can lead to a large refund, or you can end up owing less tax, and can help you through an audit, but you have to pay fees for the service, which could be more than the cost of tax software.

Software do your taxes accurately, and can send your return immediately over the Internet, but if you get audited, you're on your own.

I always do my own taxes and use tax software, and I always save the documents I used to record deductions and credits in case I get audited. Also, if a local college offers a tax law course, it would be a great idea to take one if you can afford it.

2007-01-21 04:50:24 · answer #4 · answered by Anonymous · 1 1

Let me put it this way.

I earn two-thirds of my income from FIXING people's mistakes on tax returns prepared with do-it-yourself software. And it costs them an average of twice what it would have cost had I done the return from the get-go.

Now some cases, like if you only have W-2's and bank interest, you can do just fine with TTTTTax software.

But more complex cases...well you decide whther to spend a little now, or a lot later.

a Good Tax Advisor

2007-01-21 06:30:01 · answer #5 · answered by WealthBuilder 4 · 1 2

I use a tax attorney but for most people the do-it-yourself software
is just fine...

2007-01-21 04:43:54 · answer #6 · answered by Anonymous · 1 0

Depends on the complexity....Starting out, software should work. Be sure to research various types before you buy, though.

2007-01-21 04:39:31 · answer #7 · answered by smiling_freds_biz_info 6 · 2 0

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