By Miriam Caldwell on December 15, 2011 6:00 am | Leave A Comment
Tax season is just around the corner, and it’s time to consider how to find a good tax preparer. Using an accountant or a tax preparation service can take a lot of the stress and guess work out of doing your taxes. It makes the process much easier, and can possibly save you money in the amount that you need to pay in taxes each year. If you have a complicated situation or if your family circumstances have changed in the last year, you should consider choosing a tax preparer.
Finding a good tax preparer can be a difficult process. One option is to go to one of the big tax preparer stores. These people receive training each year and will enter your information into a computer system that will help them file your taxes. The company will stand behind your tax return as long as the information you give them is correct. It is important to watch the fees that you will need to pay when you go, as well as the added fees to file electronically. You should also steer clear of the refund anticipation loan, because the fees for them are extremely high. If you file electronically and receive your refund via direct deposit you should get your refund in two to three weeks.
Another option is to use a private accountant that does not work for a major tax prepare store. These personal accountants may give your more personalized service. You are a client, and they hope to have you return each year. The best way to find this type of accountant is through word of mouth. William Perez from About.com suggests you ask a series of question of any tax preparer you use to see the certifications and other experience the person has. Not all CPAs are tax accountants, and you may need a tax attorney, if you have a particularly complicated situation.
However, if you have a relatively straightforward situation, you are both employed at a regular job, and you have your taxes withheld regularly, you may be able to do your taxes yourself using software that your purchase from a store or online. You can also file your taxes electronically using the software, which can significantly speed up the amount time of your refund. This will work if you haven’t had any major tax changes over the last year with complicated expenses such as the adoption credit. The software will ask you the questions for your deductions and credits, and you simply need to refer to your records to answer them. This option can save you quite a bit of money.
If you make less than $58,000 a year you may qualify to use the Free File program that the IRS offers. This allows you to access the tax software for free, and to file electronically without a fee. Some of the software also has the state software available to help you for free. Each of the companies has a different set of guidelines you must meet to qualify, but you should look into it at the Free File section at the IRS website. This can give you the same software at no cost to you. However, the software is not designed to help a small business owner.
Once you have reviewed your current tax situation you should be able to tell if you need to find a tax preparer or if you can use the software effectively. If you do need a tax prepare, ask for references from people you know, interview the tax preparer and ask to speak to clients for recommendations. You want to find someone who stays current with the tax law and focuses on your current situation. Some tax prepares spend more time with small businesses, while others focus on estate planning or wealthy individuals. You should be able to find one that is a good match for you. The IRS recommends that you carefully review your tax return before signing it.
ABOUT Miriam Caldwell
Miriam is the mom to three kids. She works from home and enjoys being home with her kids, although s{read more}

