Every year, some Americans prepare their own taxes using software applications without identifying and learning about the changes in specific IRS rules and guidelines. As the deadline to file taxes draw closer each year, many of these people try desperate measures to meet the deadline, sometimes not making the best decision of hiring an accountant instead of self preparation.
There are several convenient and efficient options that an informed consumer needs to consider as it relates to the advantages and disadvantages of electronic filing. For many Americans, they think first about the cost of using a CPA or other tax professional because in some cases the tax preparation cost is more than the tax refund amount. However, this doesn’t happen often. If you decide to file your own taxes, you need to be aware of the common pitfalls.
There are benefits of filing your own tax return. The most evident benefit is saving money by not having to pay a tax professional
. In addition, it helps you to get acquainted with your personal finances, forcing you to look at the money that you spent for the year in comparison to what you earn. In some cases, it can aid you in adopting wise budgetary practices. However, filing your own taxes does have some limitations. Yes, you may be able to categorize a simple lawn care service, but when it comes to categorizing open heart surgery, you may have to leave this to the professional. If you have an adjusted income of less than $57,000 annually and you have only one income stream, the IRS has low cost options that you can use. On the other hand, if you operate a business, you need all the deductions that you qualify for. In that case, you will benefit more to hire a professional tax preparer.
Assessing the Detail
A Denver accountant can help you to assess details of your return and get you the most deductions. Filing taxes on your own without knowledge of the tax code laws can be quite time consuming and challenging. In the end, the cost to hire a tax professional will be worth it. For example, if you were to pay a Denver tax specialist $500 to prepare a return and you are able to get a $2,000 tax refund, you would fare better than doing it yourself and only getting a back refund of $1,000.
Even if you are a student or someone who works on a part time basis with modest wages, you would be surprised to know the extent to which a Denver tax professional can help you. There is always a chance that you will get a reasonable tax refund.
The Dreaded Audit
One thing that many people do not consider when filing their taxes is the IRS audit. If you are flagged by the IRs for high deductions, then you could get audited by the IRS. When this takes place, it can be quite challenging to find the related documents to build a persuasive case. However, if your taxes were filed by a Denver accountant, you will get the help you need for an audit-proof tax return.
Bloch and Rothman
can help you with your personal tax preparation. Let a financial professional with years of experience provide the tax help you need each year. Call us at 303-321-7160 to set up a confidential consultation where we will discuss your options.