The Internal Revenue Service announced today that the nation’s tax season will begin Monday, Jan. 23, 2017, and reminded taxpayers claiming certain tax credits to expect a longer wait for refunds.
You may wonder whether you need a CPA to file your tax return or a software package will do.
It’s a fact that you will pay less for a software package than you will pay to hire a CPA or another qualified tax professional. Price of a software may range from $ 10 to $ 100. On the other hand a CPA may likely charge you at least $ 100 to $ 250.
Benefits of hiring a CPA
- Better Software – CPA will have a better software which takes care of most of the available deductions and credits. Accountants pay around $ 1000 to $ 3000 for their software which is far more sophisticated than products sold to consumers
- Human Touch – Like a good family doctor that knows your medical history, you can develop a relationship with an accountant so that he or she understands your family’s financial situation and future goals. As a trusted professional, a good accountant will be able to answer important questions that arise not just during your annual consultation, but at other times during the year.
- Saves your time – A professional tax preparer is so familiar with the system, he or she can quickly and easily accomplish tasks -Even if your tax situation is straightforward, hiring a professional will save you the time and stress of doing your taxes.
- Better returns – As the professional tax preparer covers all possible deductions and credits, you may have a better tax return than a software guided tax return.
The Bottom Line
Ultimately, there is no universally correct answer to the question of hiring a tax professional or doing your taxes yourself with software. Your comfort and familiarity with IRS rules will be part of your decision, but the complexity of your finances should be the key deciding factor