| The answer to this question depends on the situation | | | | for referrals and going to the AICPA website which |
| and requires a discussion with your spouse or business | | | | lists each state's board of accountancy. You will be |
| partner. Please note that this topic can get intense at | | | | able to verify that the individual is in fact a CPA and if |
| times so be sure to discuss all of the benefits and | | | | they have any disciplinary actions against them. |
| drawbacks of each option. Also, make sure the focus | | | | H&R Block, Jackson Hewitt & Others |
| is not completely on which option is cheaper or what | | | | The national tax preparation chains may work for you |
| you did last year. The financial conditions of individuals | | | | but they usually do not provide the same level of |
| and businesses change each year so the option you | | | | quality as a CPA or Enrolled Agent. While the price is |
| select to file your taxes should also be re-evaluated. | | | | affordable (starts at around $100 per return), the risk |
| So, what are your options? | | | | of mistakes is higher than if a CPA filed the return |
| TurboTax, H&R Block At Home, TaxAct, | | | | since the requirements to be a tax preparer at an |
| CompleteTax & More | | | | H&R Block is much lower than it is to be a CPA. |
| The online tax software business has been booming in | | | | The IRS is even beginning to address this issue by |
| recent years as the convenience & cost factors | | | | imposing a new policy which will regulate paid tax |
| are playing a bigger role in how taxpayers decide to | | | | preparers. Some of our clients ask about the refund |
| file their taxes. TurboTax is the most widely used tax | | | | guarantees that H&R Block and others offer |
| software program which offers a whole host of | | | | should something go wrong with the return. Our take is |
| functionality and user-friendly features but TaxAct is | | | | that wouldn't you want to avoid that situation all |
| starting to catch up. The cost is free for an individual | | | | together? Moreover, would you go to a doctor if they |
| federal tax return but if you are filing a state return as | | | | guaranteed to give you your money back or |
| well, the cost is around $30 per state. Despite the fact | | | | re-perform the operation if something should go |
| that these tax programs are easy to use and they | | | | wrong? These types of guarantees are a bad sign. |
| help streamline the tax refund process, they don't | | | | The Old Fashioned Way - Hard Copy Returns |
| replace the licensed tax professional such as a CPA. | | | | This option is only recommended for those with a solid |
| Accounting Firms or CPAs or Enrolled Agents | | | | accounting or financial background in both college and |
| The tax service provided by a reputable accounting | | | | beyond. If you are considering this option, keep in mind |
| firm or CPA is still and will continue to be the least risky | | | | that it is always better to have another party file your |
| way to file your tax returns. The cost can range from | | | | return because it reduces the risk of a mistake. |
| $150 to $500 per return depending on the complexity | | | | You Are Still Responsible Too |
| & the CPA's experience level. While it can get | | | | Whichever 3rd party option you choose, make sure to |
| costly, it is the best option if you don't have an | | | | also check the tax return for errors & mistakes. |
| accounting background or if the tax return is for a | | | | Using a tax software or tax preparer (including CPAs) |
| business. Paying a few extra dollars can save you | | | | are not full proof, so take the 15 minutes or so to |
| money in the long-run. When choosing a CPA make | | | | check the numbers (including your social security # |
| sure you do a thorough background check by asking | | | | & personal information) yourself. |