why don't you get a tax preparer?

Question

I wonder why some people still do their returns themselves. what could be the reasons for not getting a tax preparer?

Answer 1

There are three reasons for someone to file WITH a preparer. First, you simply don't want to deal with it on your own, even though you are intelligent enough to read and fill out the form. Second, you have a complex tax return and want some expertise (and a guarantee) behind the work. Finally, you want access to things like Refund Anticipation Loans and IRA's from your refund. Also, some of my clients choose to come in specifically because if something happens, like an audit, they have someone to go with them at no charge. Not all tax services offer that, though.
When choosing a tax professional, it is important to choose one who is familiar with any 'oddities' you might have. It is also important to find out whether they have year-round hours in case you get correspondence from the IRS, and whether they guarantee their work. You should find out if they take continuing education every year, at least for updates. Finally, it is important that they explain everything on the return, offer whatever products they have, but don't push anything on you, and offer to discuss other financial topics such as retirement savings and how they will affect your tax return in the future. Make some phone calls, ask questions, and make an appointment with a specific person. And make sure you don't pay if you're not satisfied with the work. This is your money, and you need to be comfortable with the outcome.

Answer 2

People don't use a tax preparer when they have the necessary knowledge to do their own return and are willing to spend the time to do it. Otherwise, they use a preparer.

For those taxpayers with routine returns, you pay for speed, convenience, accuracy, and assurance that if there is an error and you owe additional tax, the preparer will pay any penalties and interest, and amend the return for free in case of preparer error.

I think that it is worth $75 to not learn about whatever changes affect me, and then mess around with the forms or computer software for a few hours or days.

I could probably cut my own hair and mow my own grass, and do routine household repairs. I don't do that either although those tasks could be considered easy.

For millions of other taxpayers who get refundable credits, going to a preparer gives them assurance that they are qualified for those credits. Millions of these people don't have computers or bank accounts. A professional preparer can e-file their return and get them their money in a check or on a debit card for an additional charge of about $30. That's not outrageous in my opinion.

Many of these same people choose to take out a loan against their refund. If they could wait 8 - 15 days they would not be paying any interest, but they do not want to wait. Fortunately the finance charges have become much lower because of the competitive nature of the industry.

Answer 3

No, the preparer isn't to blame for any fee. The preparer is type of like a messenger; no longer to blame for the message; only places it down in black and white. There may be no preparers who might do returns if such replaced into the case as there is too plenty recommendations that gets neglected or no longer presented or lost or despite the fact that. people forget approximately that they owe newborn help or pupil loans or something which will offset a refund. Or, people forget approximately approximately advertising shares or bonds; or, the interest in no way gets to them so as that they forget it and this is not lined interior the return. an excellent preparer will continuously practice a return and then ask the theory to sleep on the problem and notice in the event that they bear in mind something they have forgotten; and it is astounding how plenty recommendations is further day after today. I continuously bear in mind an old asserting, "Do it precise or do it over".

Answer 4

If your return is straightforward (and most are), it's not hard to do for someone who can follow directions, so money spent on a preparer would be wasted.

In my case, a return of medium complexity, I do my own because I have formal training in tax preparation and have software available to do it. When my husband had an s-corp, we had a CPA do the corporate return, then I did the personal return - it wasn't worth my time to learn all I'd need to know to do the corporate return and filings properly.

Answer 5

Because of the fees. If more people sit down and try to do their own taxes themselves, you would not need a paid tax preparer. However, many people do not want to fully understand their own tax situation and try to save a few bucks and get into trouble.

Answer 6

I have nearly 40 years of professional and semi-professional experience with taxes. Why on God's Green Earth would I pay someone else?

Truth is, for the vast majority of taxpayers, there is absolutely no reason to pay someone else to do your taxes. If your only income is wages on Form W-2, paying someone else is a waste of money. And if you let them bully you into a refund anticipation loan they'll really clean your clock.

If you insist on paying me $75 for 10 minutes worth of time to fill out a Form 1040-EZ for you I'll gladly take your money, but in my personal opinion it's just silly.

Answer 7

Many people I do returns for have complained about the fee. All they see is me entering information into a computer and the computer preparing the return.

They don't realize all the training and experience I have that tell me where to put the information.

Answer 8

Two yrs of accounting classes makes me believe I know what I'm doing. Also I took the Jackson Hewitt class and worked for them 3 yrs ago.