Each tax filing season brings about a discussion on the merits of retaining the services of professionals. Unfortunately, there are a few misconceptions about the process of letting a professional tax preparation service handle your filing. Before we take a look at some of these myths, consider the following statistic: the number of active tax preparation specialists in the United States has been steadily growing since 2017 at more than 10% on an annual basis.
Tax Preparation Services Only Offer Personal Service
Taxpayers who feel more comfortable staying at home and interacting with tax preparation staff online can certainly do so. In fact, there is considerable interest in this method because many individuals are prompted to retain these services while they are completing their 1040 forms online. Naturally, quite a few taxpayers still prefer the more traditional visits to local offices and getting to know their preparation specialists.
Tax Preparation Services Take Too Long
Preparing tax returns for filing can take a few minutes or a few days; this will largely depend upon various factors. On one hand, filing taxes for a 20-year-old nurse without dependents who gets a W2 wage statement from a local hospital, and who never works overtime, will not take long at all. On the other hand, a self-employed electrician who receives multiple 1099 forms throughout the year, and who has set aside a room at his house to serve as his office, will take longer to prepare. In general, using a tax preparation service will be faster, and taxpayers who expect refunds from the Internal Revenue Service tend to get them faster when they use professional filing services.
Tax Preparation Services Are Too Expensive
With regard to pricing, professional tax filing is not as expensive as some people claim. When we talk about very frugal taxpayers who only need to file a 1040EZ form, which is something they can complete on a Saturday afternoon, opting for professional filing is a bit more difficult to justify. In the example above of the self-employed electrician, however, the cost of tax preparation, which can be claimed as a deduction in many cases, makes sense because he can continue to work or look for business. In contrast, his taxes are being taken care of.