Tax Return Preparation Continued…

Tax professionals may charge a flat fee or by the hour. Depending on the complexity of the return, one may be more expensive than the other. For example, someone with multiple properties who possesses a complicated investment portfolio, businesses, and estates will have a vastly more complicated tax return than a single person with a salaried job and minimal investments and assets. However, most tax professionals will adjust their flat fee to compensate for the greater time required for complex returns, so the difference in price is more dependent upon the individual preparer than the fee structure.

The history of a tax professional should be carefully considered, as well as their education and overall experience. There are many nuances to taxes that can only be learned through formal education and on-the-job experience. Some preparers will offer a free evaluation and return estimate, an excellent resource that can be utilized in order to find the best professional available.

Tips for doing tax returns yourself

Despite the many tax return preparation professionals available, many people still opt to do their returns themselves. If this is the case, there are many resources that can give hints, tips, and tools that will not only save time and frustration but may even result in a greater tax refund. The development of comprehensive, user-friendly tax return software programs has made doing returns electronically easier than ever, and new websites that offer e-filing services also offer a plethora of tools to assist in completing tax returns quickly, easily, and accurately.

The IRS website is a good place to start; here the latest changes in tax laws are reported and links to helpful websites and companies are provided. Electronic filing is available from many companies at no charge, and results in a quicker processing time and the option of having tax refund money directly deposited into a bank account in as little as one week.

Whether you choose to do your tax return preparation yourself or hire a professional, it is something that most Americans must deal with at least once a year so the resources available should be utilized as much as possible to make it a painless – and hopefully even a nice – experience.

By Kira Lee