Is It Necessary to Pay for Tax Preparation Services?
Hardworking, patriotic Americans in the millions submit their federal and state income taxes every year around April 15th to find out how much they owe or will get back from the government. A large number of taxpayers employ Certified Public Accountants (CPAs) to do the math for them because the rules are complicated and subject to annual change. The services you require from expert tax filers will determine the final price.
Expert tax preparers are certified public accountants, or CPAs. Of course, that's only one of many things they provide; they do a lot more than that. Before he or she can start accepting customers, he or she needs to pass the licensure exam in their state. Certified public accountants are experts in accounting and have a degree from an accredited four-year college or university.
Every two years, accountants are polled by the National Society of Accountants to find out how much it typically costs for professional tax preparers to do individual income tax returns. In 2010, individuals who worked with a certified public accountant paid around $95 for Form 1040A and more than $229 for Form 1040 that included a Schedule A itemized deductions form.
You can find a lot of folks to help you with your annual filing. A tax preparer is an individual whose sole occupation is to assist clients with their tax returns. Education, qualification, or license is not necessary to become a preparer in any state except Oregon, California, and Maryland. A tax preparer might be anyone.
Many tax preparers who work for national chains or solo practices have very basic education on how to file individual income taxes. Hiring a tax preparer will save you money compared to hiring a certified public accountant. Consumer Reports reports that in 2009, the largest tax preparation chain in the country charged an average of $172 for its clients' services.
Having professional preparers assist you in locating all possible credits and deductions is a huge benefit. Free electronic filing is typically included with this service by most companies. You can be offered a return loan to collect your money quickly, but it will likely cost a bit extra. Just like any other time your refund arrives, you can pay back that loan to them.
In addition to your federal return, you can have your state return produced simultaneously. The price will be slightly higher, approximately half of what you would spend for your federal tax return. So that you are not caught off guard while filing, remember all of this.
In addition, these are figures from last year; to get an accurate idea of how much professional tax filers often charge, it's best to get in touch with multiple in your area. Get the best price by comparing prices; this will save you time and effort and make it easier to avoid making mistakes when dealing with complicated tax regulations.
