When you hire a professional to prepare your taxes, you will have the added benefit of someone else doing the work. This service allows you to focus on other aspects of your business. These services are reliable, fast, and efficient. You can even pay for tax preparation services on a resale basis. Here’s how to choose the right service:
Pricing. Depending on your budget, you may charge per hour. This may seem intuitive at first, but you may not be making as much as you thought. After all, completing a 1040 form can take as long as 15 minutes, so why pay for the work when you could be more efficient? Value billing focuses on your expertise. If you can charge a lower price, it makes sense to consider hiring a professional. And you can save money by doing so, too.
Electronic filing identification number (EFIN): The IRS assigns EFINs to preparers. While PTINs do not expire, EFINs do. Preparers must obtain a new PTIN if they change their employer details or their firm name. While all tax preparers need a PTIN, it’s important to note that the EFIN is required per physical location and firm, not per individual. The IRS takes e-filing seriously.
Self-service taxes: Using software is usually the best option for those who are comfortable using a computer. However, if you have complex investments, you might want to hire a professional. You should decide which method is right for your personal financial situation and tax situation. For tax preparation, The Tax Foundation reviewed 11 tax services and narrowed it down to the best ones based on pricing, services offered, and reputation. A tax preparation service should be able to guide you through the process and maximize your return.
Software: Tax preparation professionals must be able to keep abreast of the latest changes in tax laws. Most of them invest time daily checking for updates from the IRS, technical corrections, state, and local government agencies. To keep up with changes, the IRS website is a good first stop. You’ll find all kinds of tax publications, instructions, frequently asked questions, and helpful tips. In addition to software, tax professionals should invest in a reliable tax software.
In-person: You can also opt for an in-person service at NYC Free Tax Prep. The IRS-certified volunteer prepares your tax return with the utmost accuracy. The sessions last for at least 30 minutes. To avoid health hazards, filers must comply with New York State regulations and wear a mask during the visit. Afterwards, you can drop off your tax documents and pick up the finished return yourself. If you don’t want to wait, you can also use the online service.
Cost: The cost of tax preparation services varies depending on the complexity of your tax situation. While you can find some affordable tax preparation services, most people end up paying over $150 for federal and state tax preparation. However, the fee can go much higher if you want a comprehensive service. Whether you need a full-service tax consultation, or a simple tax return preparation, you should be prepared to spend between $80 and $180.