Connect with the world's leading business experts.
Get instant access to their expertise via world–class Q&A, Research, and Events.
Filing Taxes: Online Service or CPA?
Best Answer
- Recommended by:
- Chris Nordman
I have always done my own taxes, as I was single, didn't own property, had no dependants, so it was relatively simple. I'll be using a CPA this year as I got married, purchased a home, changed jobs, and other factors that complicated my return and I wanted to ensure that I was taking advantage of all possible credits and deductions, and I believe that someone who does that professionally will give me the best chance to meet that goal.
- Recommended by:
- Chris Nordman
A simple rule of thumb is to leave it to the professionals. If I have car trouble, i bring my car to a mechanic, Electrical issues, call an electrician. For peace of mind, it is advisable to have a knowledgable professional with the expertise to take care of your financial situation, rather then run the risk of creating a larger problem.
I guess it depends on the situation you are in... Not all is expert on Tax return preparation and not familiar with the ever changing tax law as well. If you're not comfortable doing it on your own thru online or any tax preparation software, then use a tax preparer professional who is abreast with tax laws for individuals, self employed etc and try to replicate such in the future years if everything in your case stays pretty normal otherwise, pay somebody to do it, it's deductible anyways (could be limited though).
Events
- Social Media and Content Marketing For Business Q&A Feb 14 @ 11 am PT
- The Rise of Pinterest in B2B Feb 15 @ 11 am PT
- ERP – Priming Your Business to Deliver Value From Strategy to Operations Feb 15 @ 1 pm PT
- How Not to Coach Your Salespeople Feb 16 @ 1 pm PT
- BI's Intersection with Social Media Feb 22 @ 2 pm PT
I say –
except for the simple tax returns (Form 1040EZs and 1040As) a tax professional should be engaged in preparing the tax return.
When using an online service, it is up to the person to enter his own tax information and is solely relying on the service’s software to create the tax return. If a government agency questions the tax return, will the online service be able to respond, or will the person have to seek professional assistance?
Using a tax professional, preferably a CPA, in preparing the tax return, the CPA has a fuller knowledge of the tax laws which he can put to the person’s advantage.
And the CPA can continue with the person's current and future tax planning, retirement planning, educational planning and more. This means quite often that a person’s tax responsibilities does not end with filing a tax return.