Taxes are a fairly confusing subject. You’re going to find that if you don’t know what you’re doing, it’s going to make matters worse. Let’s not forget that if you make one little screw up, it can haunt you for the years to come.
How to save on tax preparation services
Use software packages. Tax packages such as H&R Block, as well as TurboTax can save you a fairly good amount of money. They are very easy to use and in fact, most of them will even offer a professional to look over your final work for free. Most packages in store will run around $100 or less, an excellent route for a simple tax return.
Savings Tip: Look for hot deals and coupon codes on websites such as FatWallet.
See if you can file for free. Most states, as well as the federal government will allow you to file taxes for free if you meet a certain threshold. You generally have to make less than a certain amount of money to qualify to file for free. For example, last year if you made less than 57,000, the IRS allowed you to file for free. Free Federal Tax Filing
Analyzing the costs of professional tax preparers
When looking to sign up with a professional accountant, you’re going to want to first make sure that they are registered with your state and able to file your taxes legally. While it’s great to have a friend do them for free, if they don’t have the certifications, they can get you into a boat load of trouble.
Most industry experts will tell you that the average accountant is going to charge anywhere from $50 to $400 an hour. This is going to vary based on their expertise as well as the complexity of your tax return. If you’re running a business with 30 employees and you did well over 5 million in revenue, there’s going to be a lot more work and cost than for a small family with average income.
With well-known tax preparation franchises such as H&R Block as well as Jackson Hewiit, you will find that including your filing prices, you’re going to pay anywhere from $100 to $500+. Again, it’s going to come down to the complexity of your tax return. When you keep it simple, you will pay less money.
In the end, make sure that you always play it safe with your taxes. If you don’t know what you’re doing, be sure to hire a professional. Not only can they save you money, they can find many deductions that you didn’t existed.
This is a guest post written by Lauren Dzuris. Lauren runs HowMuchIsIt.org a website that is designed to help you find the cost of just about anything from baby delivery to wedding costs.