Get Ready! Get set! Go Get Your Taxes Done!

 But where do I go to do my taxes? 

The first place to go to do your taxes is…your own home!  If your taxes are straight forward, and you have basic computer skills, doing your own taxes using good tax software to guide you is financially and emotionally rewarding.  Just remember to relax and take your time, answering all the questions.  Besides guiding you to appropriate credits and deductions, tax software will also correct math mistakes and efile the return.  Another way to do your taxes at home is by pencil and paper, mailing the return in.  This is no longer recommended.  First, it takes several weeks, as your return will need to be transcribed and/or scanned into the IRS or State system.  Even though Tax Team understands that some of you feel the need to do your return this way, it increases your chance of errors both on your end and on the State/IRS end. Plus, because taxes change from year to year, you might be missing important information to lower your tax liability.  The most efficient, and quickest way to do your taxes is e-file with direct deposit into your bank account. 

Many nonprofits sponsor sites where trained volunteers prepare taxes for free. These are usually first come, first serve, so prepare to wait.  Also, some do not do complex returns, so you might want to find out before hand if they will work on self-employment or stock sales etc. 

The next set of options is paying a professional to assist you in preparing your tax return.  Anyone who prepares tax returns for compensation must be registered with the IRS and assigned a number called a PTIN.  The PTIN needs to be included on the return. 

Not all tax professionals are the same.  An Enrolled Agent has taken a three part, nine-hour test on individual and business tax returns, ethics and representation.  A Certified Public Accountant also is required to take an intensive test, and class work, on all aspects of accounting.  Attorneys also do taxes, and some even specialize in tax law.  An EA, CPA or attorney can all represent you before the IRS if you are audited. 

Here are some questions to ask if you are meeting a tax professional for the first time:

1)      Do you have a PTIN?

2)      What is your background?

3)      How much will my tax preparation cost?

4)      What options do I have to pay you?

5)      Are you available after April 15th if I need you?

6)      What happens if there is a mistake?

7)      How safe are my documents and personal information? 

The most important item is finding someone that you feel comfortable with!