Today there is free tax preparation software all over the internet so I should be able to quickly and easily do my own taxes right?
The short answer is that you can prepare your taxes online, many people do. But, there are a few things to consider before jumping in head first.
Things to consider before prepping your own taxes:
- There are a ton of software options. You have to decide which one will have the best security to keep your information safe online. Which software will give you the most accurate returns and deductions for your situation and so much more! Just like working with a tax professional in person, you have to make sure you can trust who you are working with and that they will have the best solutions for your specific situation. Which leads us into our next consideration.
- Is your situation somewhat complex? If you have multiple different tax situations to consider then it may be better to consult a tax professional. When it comes to buying and selling businesses, dealing with back taxes, unpaid taxes, large capital gains, as well as many other situations, an automated tax software may not be able to find a flexible or unusual solution for your benefit.
- Another thing to consider is that even though many of these programs offer a limited free version, paying an additional fee allows you to open up features such as itemized deductions. So consider how much it may cost you to get the features you need.
- Is it really quick and easy? Taxes can be frustrating to work with at the best of times, but trying to learn a new software while preparing your taxes can be anything but quick and easy. The tax code is quite complex, and even though these programs do everything they can to simplify the process it can still be puzzling without someone to explain what everything is and why you all of a sudden required to fill out another form or why your expected return changed so much with a single input.
- Finally, there is the question of accuracy. The programs online are built so that it can be sold to a high number of people. This means that it may not be able to figure out exactly what you need for your unique and specific situation. Having someone walk you through the ins and outs of taxes based on your unique situation can save you tons of money. Not only can working with a tax professional give you more unique solutions, but a tax planner can also work with you to reduce future tax obligations and make sure you are aware of the tax implications of some of your future plans. This can be extremely useful when planning for retirement, selling or buying a home, selling off anything that could incur capital gains, or even things like receiving an inheritance.
Tax preparation doesn’t have to be something that you worry or stress about. If you do decide to do your own taxes, make sure to have your return checked or reviewed by a tax professional before filing. If you started going through the considerations here and realized that you would rather consult a tax professional, give Trail Tax Center a call and schedule an appointment to get started with your taxes today.
