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Managing taxes can be a complicated process, whether the challenges stem from a lack of time, property ownership, or the intricacies of self-employment. Luckily, tax preparation services can help you optimize accuracy, manage compliance, identify potential savings and avoid cost penalties in tax management.
Using a tax preparation service can be life-changing—if you choose the right one. This guide will discuss different types of tax preparation services and help you identify the one for you.
In-person tax preparation services allow you to meet with tax professionals, like CPAs and enrolled agents, face-to-face. This is a great option if you want to discuss your tax management in real time with an expert. Whether you’re a business owner or your tax situation is just particularly complex and requires detailed, comprehensive assistance, this option may be for you.
National tax preparation chains like H&R Block, Jackson Hewitt, or Liberty Tax could be very effective if you're looking to manage a moderately complex tax situation with standard deductions. Widespread chains like this likely have a location near you, though they may not provide the level of personalization that a more local preparation service would.
What if you want to take care of taxes from the comfort of your own home, on your own time? For those comfortable with technology and independent filing, “do it yourself” tax software like TurboTax, TaxAct, and H&R Block’s software provide straightforward interfaces for simple returns and tax management from your own devices.
However, DIY tax software may try to sell you additional features that aren’t necessary for your filing, and those with complex returns and itemized deductions may lose a great deal of time.
For those looking to file online but still needing support from tax experts, try out an online tax service. Services like TurboTax and TaxAct often offer these hybrid options. These platforms allow you to utilize software to file your taxes remotely, but also provide an outlet for virtual assistance.
Remember that this assistance isn’t as thorough as a one-on-one conversation across the desk from a tax professional. If you have a lot of questions or more complicated returns, this option may not be for you.
Don’t want to pay for a tax preparation service? Filers with simple returns might opt for a free solution like IRS Free File, Volunteer Income Tax Assistance (VITA), or AARP Tax-Aide. These can be great solutions for low-income individuals or seniors looking to file straightforward taxes without paying for extensive services.
Now that we’ve established the various options available when it comes to tax preparation services, how do you choose the one that best fits your needs? There are a number of crucial aspects to consider:
Most importantly, you need to determine the level of your tax needs: basic, moderate, or complex. A variety of factors contribute to how complicated your filing will be. For example, if you’re operating on multiple sources of income, or if you own a business or have multiple investments, you’ll have more to account for when filing your taxes. More complex tax needs may require a more hands-on approach or collaboration with tax professionals, while simpler needs may be handled by a free or do-it-yourself service.
Make sure to evaluate the credibility of a tax service before committing to one. Look for credentials such as CPA (Certified Public Accountant), EA (Enrolled Agent), or Tax Attorney. Some services may be more suited to specific industries as well; for example, if you’re self-employed or a small business owner, consider seeking out a tax professional with expertise in the relevant area.
Evaluate the value of tax service pricing like you would any other service or purchase. Be sure to understand what pricing structure your chosen service uses; some might charge a flat fee for the entirety of your filing, and others may charge by the hour. Depending on how complex your tax situation is and how long you expect it to take, one or the other might be a significantly cheaper option. Also consider the possibility of hidden fees, like extra charges for state returns or amendments, to make sure you’re prepared before trusting a service with your time and money.
Some tax preparation services offer year-round support, and others are only seasonally available. If you anticipate needing assistance outside of the regular tax season, make sure to seek out a service that meets those requirements. Another important consideration is whether the service offers representation if you are audited. Selecting a service that will be ready and able to assist you in the case of further complications may save you a great headache later.
Have you ever checked a product’s online reviews before making a purchase? Reviews, testimonials, and ratings (from the Better Business Bureau, for example) can be just as helpful when considering a tax preparation service. Look for highly-rated services emphasizing responsiveness and professionalism.
Data security is particularly important to consider when it comes to online-based services. The privacy and maintenance of your important tax data shouldn’t be up for debate. Make sure to look for secure platforms—some good indicators of quality data protection are SSL encryption and two-factor authentication.
If you are in need of tax preparation services, Credit Central is here to provide easy, accessible assistance. We offer both a digital option and an in-person option, making it easy to get assistance in a way that is convenient for you. Contact us today.
