Getting Help With Your Taxes

Getting Help With Your Taxes
Preparing your taxes can be incredibly stressful .​
In many cases,​ it​ just makes sense to​ get some help with them .​
Save Me From This Misery!
When it​ comes time to​ file taxes,​ you​ can look to​ software or​ a​ real live person .​
In this article,​ we are going to​ focus on​ living people,​ to​ wit,​ the​ tax professional .​
You might be surprised to​ learn there are different types of​ assistance out there .​
Tax Preparer
Generally,​ tax preparers have the​ least amount of​ experience when it​ comes to​ filing taxes .​
Tax preparers are individuals that are trained for the​ job or​ pick up the​ knack over time .​
An example of​ a​ huge collection of​ prepares would be the​ people that work at​ H&R Block .​
The advantage of​ using a​ tax preparer is​ they are very cheap .​
Just keep in​ mind that you​ get what you​ pay for .​
Enrolled Agents
The IRS actually licenses certain individuals if​ they pass scrutiny with the​ agency .​
Unlike tax preparers,​ an​ enrolled agent can represent you​ at​ an​ audit .​
Enrolled agents are a​ step up from tax preparers,​ but the​ quality of​ work and knowledge varies from agent to​ agent .​
Some can be excellent because they have an​ interest in​ the​ work and stay on​ top of​ changes .​
Others are less impressive .​
CPA
The Certified Public Accountant goes through a​ hellish process to​ obtain their license .​
Getting licensed as​ a​ CPA requires significant study and the​ licensing test is​ absolutely brutal .​
If you​ have a​ unique or​ complex financial situation,​ you​ want to​ use a​ CPA to​ do your taxes .​
In fact,​ you​ should use a​ CPA throughout the​ year to​ not only prepare taxes,​ but plan to​ avoid paying as​ much tax as​ possible .​
CPAs are expensive with hourly rates in​ the​ $200 to​ $300 range .​
They can,​ however,​ be worth their weight in​ gold and a​ few of​ them are pretty heavy .​
When picking a​ CPA,​ you​ want to​ find a​ proactive one .​
a​ proactive CPA is​ going to​ talk to​ you​ about your life and finances .​
They are then going to​ make suggestions to​ significantly lower your tax bill .​
The savings typically far outweigh their fees,​ and you’ll be glad you​ hired them .​
So,​ who should you​ pick? the​ answer is​ entirely dependent upon the​ sophistication of​ your finances .​
If you​ are salaried employee earning $50,​000 a​ year,​ you​ don’t need a​ sophisticated tax planner .​
If you​ are a​ small business owner with three businesses,​ it​ is​ time to​ find a​ CPA.