Taxes – general
Taxes are a horribly complex thing –
no one is going to argue about that. Next time you have
a spare afternoon, break out the U.S. tax code (or, more
specifically, Title 26 – Internal Revenue Code) and give
it a read. If by the end of the afternoon you understand
anything about how you are supposed to be paying your
taxes, you will be ahead of the vast majority of the
population. Perplexing or not, however, everyone (well,
almost everyone) has to file their tax returns and pay
their taxes (preferably on time!). Fortunately, there
are a number of solutions out there than can make filing
your taxes easier for you, and could in fact even leave
you with a reduction of your tax bill.
Using tax professionals
(or, getting someone else to do the work for you)
The biggest benefit to getting tax
professionals to prepare your tax return is, well, the
fact that you do not have to prepare your tax return.
Preparing your own tax return can take up a lot of your
valuable time, can end up causing a huge amount of
stress and annoyance in your life, and can be a
bewildering and confusing situation. Using a tax
professional will take away most of your tax related
stress (let’s be honest, nothing will ever take away all
of your tax related stress). Ideally, you will also be
able to rest easy knowing that someone who actually
understands the U.S. tax code is preparing your taxes.
This is especially important if your tax situation is
particularly complex, or if you need to engage in an
aggressive tax strategy as part of a larger financial
plan.
In order to find the right tax
professional to prepare your taxes, you should consider
first what your needs are. If you have a particularly
complex tax situation, or are a small business owner,
you should consider getting either a Certified Public
Accountant (CPA) or an Enrolled Agent (EA) to do your
taxes. The advantage of using a Certified Public
Accountant or an Enrolled Agent is that you will know
you are using someone who has been certified (either at
the state level for CPAs or by the IRS for EAs) to do
taxes. This should give you a certain amount of comfort
that your complex tax situation is being handled
properly. If your tax situation is more straightforward,
you could consider using one of the many walk-in
services that blanket the nation with advertising during
tax time. Or if you are more confident in your skills,
you could use tax filing software to finish your taxes
yourself. With most software, it will involve answering
a series of questions, so it is not like you will have
to be working with the blank tax forms yourself. The
best part about using the software is that, if your
adjusted gross income is $52,000 or less, you will be
able to use a software package to file your taxes for
free under Free File program. Whatever option you chose,
be sure to get your taxes in on time! |
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