Using a tax preparation service initially costs more than filing yourself. Alternatively, professional accountants may also save you a whole lot of time and expense down the line. Instead of spending hours reviewing tax minutiae and crunching numbers, you get the convenience of having someone else do it for you. Likewise, the best services only use Certified Public Accountants or Enrolled Agents - the most competent tax specialists available. Therefore your tax-return is guaranteed to be as accurate as possible. Alternatively, doing your own taxes your opens the door to errors. A simple math mistake or missed deduction can mess up your entire return as well as cause you to be audited.
When times are financially tough, every dollar counts. So, spending cash on a tax specialist may seem inconceivable, even if you see the benefit in doing this. On the other hand, you could be surprised to learn that the price of employing a professional could possibly be tax deductible. The mileage expended to drive to and from your agent, postage for mailing tax forms to him or her, and, the price of the preparation itself can all be deducted if your expenses total 2 percent or more of your adjusted gross income. These types of deductions will be considered miscellaneous and should be reported on Schedule A of IRS Tax Form 1040. Be sure you have your accountant itemize your deductions if you want to take advantage of this tax break. Furthermore, but accounting professionals generally know about deductions you could not be aware of so also they can get enhance your deductions, thereby lowering your taxable income.
Auditing support is just one of the most critical advantages of using a professional tax service. Along with lowering your probability of being audited, having a CPA or Enrolled Agent within your corner can give you the support and tax expertise you'll need to successfully pass an IRS audit if one comes up. When facing an audit, it is important to have someone you trust to help you through the process. Likewise, within the unlikely event that an error is produced by your tax professional it will be able to be resolved. However, going it alone can often lead to pricey litigation. Unfortunately, not all tax professionals are alike so finding the right person from the start makes all the difference. Moreover, the IRS has begun to crack down on many less than scrupulous tax preparation companies so be sure you get references and verify credentials before trusting someone with your most sensitive information.
Ultimately, the decision of just how to prepare your taxes is just one you must make based upon your own needs and circumstances. On the flip side, comprehending the benefits of dealing with a professional could make the decision a lot less complicated and even ease much of the apprehension you may have about facing the coming tax season.