4 Tax Filing Methods Compared
Every citizen with income has to pay taxes, but there’s no reason to pay more than you owe. In order to keep as much money as possible, you need to choose the least expensive tax filing method that will maximize your deductions and credits. The tax preparer’s ability to do this is usually correlated to the training and credentials that he or she has within the financial industry. However, the more a preparer can do for you, the more their services are likely to cost. Furthermore, certain tax professionals will be better suited to serve you based on your financial circumstances and needs. Here you will find four types of tax preparation methods and how you might benefit from each.
1. Tax Chain Franchise
Taxes can be expensive to prepare and file, which is why many preparation franchises have popped up all over the country in recent years. These franchises are staffed by trained and certified employees that use special preparation software to prepare your taxes. This software will help the preparer detect any errors throughout the process so that hurdles are preemptively avoided.
However, if you own a business, getting your taxes done at a franchise may not be the best idea. Entrepreneurs almost always have complicated tax filing issues and will require more specialized preparation skills. But, if you work in a job that sets aside the right amount for taxes already, then you’d save the most money getting your taxes prepared at a chain franchise.
2. Enrolled Agent
An enrolled agent is someone you ought to see if you are an entrepreneur or have complex taxing issues. Many enrolled agents are former IRS agents, which means they know many inside tricks of the trade that only a few other people are privy to.
3. Certified Public Accountant (CPA)
CPAs are not usually as expensive as other, more specialized professionals, but there’s still plenty they can help you with. If you have gone through a significant change in your life that has heavily impacted your finances, then you’d want to see a CPA to prepare your taxes.
4. Do-It-Yourself (DIY)
It is possible to do your taxes yourself, especially if you are willing to pay for a service that guides you through the process. There are many types of tax preparation software services available.
Each of these four tax preparation methods has its advantages. The benefits among those listed above that are most attractive to you will likely be the best fit for your circumstances. Contact a company like Tri-Check Income Tax Service for more information about tax filing methods.