You’ve seen the software on the shelves of office supply stores, allowing you to do your own taxes in the comfort of your own home. But you have also seen all the commercials for tax companies who are doing everything they can do keep their customers, bring in new ones, and keep everyone happy. In fact, H&R Block even came out with their own tax software in order to better compete with the increasing popularity of TurboTax. But which is the method you should use? Is one really better than the other?
The first thing you may want to look at is the amount of information you have in terms of income, children, any businesses you run, deductible items, and so forth. If you have a large business or simply a lot of confusing information, then it may be better for you to utilize a tax professional. For many people, however, life is fairly basic; a few children or no children, each adult has a job, little to no money is able to be deducted, and other such items. In this case, you may have more reason to utilize software.
The second point people will look at the most is the cost of the service. Tax companies can charge a great deal of money for their professional tax preparers. However, some people feel uncertain about the “professional” ability of some employees. Unless they truly are wise in the ways of tax preparation, all they truly do is use the company software, take your information, and type it into the forms on the computer. Sounds a great deal like something you could do yourself. The difference is finding a truly skilled tax company with employees who know more about taxes than most of us probably ever will and who know to ask questions about things we might have never thought of before, thus earning more when your return comes in the mail. Fees also tend to bother people; you can be charged an extra $20 for a service that states the company will assist you in court should there be any problems on your return and perhaps another fee for getting your return faster. Even a smaller company can charge more than you are comfortable with, so having someone else do your return could cost anywhere from $80 to over $300.
The software, depending upon the version you get for your specific lifestyle, can cost $40 to $100. It gives you help, phrases questions in an understandable manner, gives you the option to save and continue work at a later time, gives you the option of eFiling and each year the new software is updated in case any new tax information is released. The downsides are if you do not have a computer or you have a question that is not answered by the software. You may still be shuffling through your paperwork in order to fill in the boxes on the screen, but that is no different than what most tax preparers do.
If you have used a trustworthy and efficient personal tax preparer for years, you may feel more comfortable continuing your visit to their office. The software is much more appealing, but if you still feel unsure, you can visit a professional. Just make sure the person you end up working with is very knowledgeable about tax information and laws - you should be getting your money’s worth.
