A software creator has released its latest commercial for its software recommending self-tax preparation. The theme is “Tell the story of you by you.” The basic meaning of the commercial is you know what happened in the past year. Why not prepare your own taxes? Why is this not a good idea? because there are constant changes in the tax laws. Often business owners don't know how to apply particular deductions and opt not to claim certain deductions.
The tax preparation software is helpful, but you have to know the tax laws and regulations for the federal and state. If you do not read the fine print of the tax laws, you could force the software to give you a deduction for which you are not truly eligible. Many people have lost hundreds of dollars. The other end of the spectrum is that taxpayers do not know they can take certain deductions. The tax questions in the software are similar to the same questions a tax preparer would ask. However, a tax preparer knows that specific criteria would apply to determine if you are entitled to this deduction.
Free Tax Preparation Programs
Tax preparers and tax consultants also had the pleasure of working with former customers of the Free Tax Preparation Programs. The Free Tax Preparation Programs are the locations or websites that offer to prepare and file your tax return for free. However, income limits apply. The former clients of the Free Preparation Agencies found that the service was not optimal. The clients experienced missed deductions and owed more taxes than required because the agency only knew how to prepare “Simple Returns.” This issue requires an amended return, which is time-consuming and troublesome for you as a client. Most of the time, a tax consultation or tax preparation fee is a great investment when you think of the amount of money you save. Remember, the tax laws can be confusing and it's helpful to talk them over with an accountant or tax preparer throughout the year.
Help Year Round
Free Agencies or the software providers are not always around and really do not assist you with proper tax planning. Make sure you have someone that you can contact throughout the year.
Don’t submit a payment out of fear….contact your tax consultant or tax preparer to assist you with these issues.