When January comes around, it is time planning to file your tax return. With all the DIY tax prep websites today, many people choose to prepare their taxes themselves. However, this isn’t always the best option. Filing a tax return isn’t always as easy as you think, and professional tax preparation Denver. There are several reasons why it is best to have your taxes prepared by a professional.
#1 Deductions and Tax Credits
If you don’t know much about tax law, you can easily miss a deduction or tax credit you qualify for. This can result in a lower return or a higher tax bill. Tax professionals understand tax law and will make sure you get every deduction and tax credit possible.
#2 The Tax Codes Are Always Changing
Tax codes often change every year, which can make preparing your taxes challenging. If you don’t do your research ahead of time, you can make costly mistakes.
Tax prep professionals study the most recent changes in the tax code before tax season begins, and they understand the codes. When you hire a professional, you can be sure your taxes are prepared based on the most recent tax codes, preventing problems and headaches later.
#3 Saves Time
Many people sit down to prepare their taxes, expecting it to be quick and easy. Unfortunately, many people discover that the process takes more than they planned. According to NOLO, it can take as many as two hours to complete a simple return, and the more complicated the return, the longer it will take. For example, it can take three hours to complete a 1040A and as many as nine hours for business taxpayers.
A professional tax service will ask the essential questions when you drop off your paperwork and will work on your return when you leave. If you choose professional tax preparation service, you will need to drive to the office and answer a few questions, and your part is done. The tax professional will handle the rest, saving you a lot of time and frustration.
#4 Reduce the Risk Of An Audit
According to CNBC, the Internal Revenue Service audits one of every 220 individual taxpayers every year. If you prepare your taxes and make a mistake, you can get audited, which can be scary and expensive.
When you have your return filed by a professional, you can be sure that mistakes won’t be made, which will reduce the risk of being audited. If the IRS starts asking questions or if you are audited, you will have someone in your corner to answer the questions and help you handle the audit.
#5 Less Stress
Tax season can be stressful if you plan to prepare your return yourself. Because the process can be time-consuming, many people put it off until the last minute, just barely making the tax deadline. When you have a professional prepare your taxes, you can drop off the paperwork and won’t need to worry about it again, making tax season less stressful. Do-it-yourself tax prep might save you money on the initial cost; however, the benefits of hiring a professional make the extra cost well worth the money.