1. Are you prepared to give your taxes your time? The average tax payer spends between 22 and 32 hours filing their taxes return. Do you have that kind of time?
2. Are you prepared to give up the cash to pay a preparer? Average tax payers pay between $290 and $410 on preparers. However, money that you spend on a preparer this year may be tax deductable on your return next year.
3. Are you prepared to deal with the complexity of the federal code? The tax code is complicated. To avoid making errors, 90% of Americans pay preparers or use software to ease these complexities.
So, whether you don’t have the time, or your return is extremely complicated, hiring a tax preparer may be your best option. However, not all preparers are created equal. To protect you from preparer scams the IRS has provided a helpful list of tips for choosing a preparer:
- Check Credentials
- Based on your needs choose between am enrolled tax agent, a lawyer, and a CPA (certified public accountant)
- Check History
- For CPA’s, you can determine their licensure status and any disciplinary actions they may have through the state boards of accountancy
- For lawyers, visit the state bar association to review their history.
- Service Fees
- Ask if They Use Electronic Filing
- Never Sign a Blank Form
- Make Sure Your Preparer is Accessible
Twitter/Facebook: Are you considering paying a tax preparer this year because you just don’t have the time to do them yourself or your returns are complicated. Check out the latest FSA blog post for advice on choosing a preparer!