Once tax season rolls around again, you basically have two choices – to file your taxes yourself, or pay a professional to do them for you. If you are a taxpayer in St Louis tax preparation by a professional tax preparation company is easy to find and has several advantages over trying to do your own taxes, even if you use tax preparation software. Expect to pay up to several hundred dollars to have your individual taxes prepared, although for most people, it is well worth the cost.
Perhaps the biggest reason to use a professional tax preparation company is to ensure that your tax return is accurate. Every year, thousands of people submit an incorrect or inaccurate tax return, and although the most common error is figures added up incorrectly, there are also many other mistakes it is all too easy to make. These can include using the wrong forms, entering the wrong social security number and even forgetting to sign your return. Needless to say, any such error will result in a delay of your tax return being processed, and will mean a longer wait for your tax refund.
A good St Louis tax preparation company will use software designed to catch and correct any errors, and the professionals working there are trained to double check for common errors. Although most of us know which tax form to use, it is easy to use the wrong one, especially if you are declaring self employed income, or have a complicated tax situation. Many forms commonly used by the IRS are frequently revised or updated, making it important to use the current version of any tax form and a tax preparer makes a point of knowing which forms are currently being used. Every year, hundreds of tax rules change too, and a tax preparer makes it their responsibility to keep up with these changes and how they might affect you and your taxes.
Of course, when filing your taxes, you want to include all the deductions you are entitled to and receive the biggest possible refund. Tax preparation software is designed to maximize your deductions and generally make the process simple, although much of the software programs are not generally programmed to ask the right questions about your specific financial situation, such as any capital gains and losses. Although tax preparation software is often ideal for those who simply have a W2 form and nothing else, they are sometimes confusing for those with a more complicated situation. If you have several jobs, are self employed, have complex property tax issues or own a company, paying a professional to help you is highly recommended. Many companies offering tax preparation will check your return a second time for no additional charge, or even check the previous year’s return for possible errors.
Every year, about 5 percent of tax returns are audited, and many tax filers understandably worry about receiving the dreaded audit notice from the IRS. Most software programs don’t come with a guarantee of help and support should you be audited, whereas most professionals do include this help as part of their overall package. Another advantage of using a professional to file your taxes is that their expertise doesn’t stop after April 15th. Although the first few months of the year are obviously the busiest time for them, many tax preparers work year round and can provide support throughout the rest of the year, to potentially save you money at tax time.