Most people’s tax returns are ridiculously easy. If you have wages, interest or unemployment benefits, and perhaps have some Earned Income Credit coming, go to the IRS site that directs you to place where you can do your taxes for free. Don’t be scared – it’s routine, fail-safe, and accurate.
Whatever you do, avoid H&R Block.
If your taxes are more complicated, you are self-employed, itemize deductions, have doubts about whether or not you are entitled to exemptions, buy a tax program. TurboTax will get you through it. They will rip you off to piggy-back a state return, which is a big profit center for them, and maybe even charge to e-file, which costs them virtually nothing. But you are still better off than you would be visiting an expensive preparer.
Whatever you do, avoid H&R Block.
If you have tax issues beyond the norm – sale of assets or residences, passive investments, minimum IRA withdrawals, audits, rental units, LLC’s and S-Corps and K-1’s, then it would not hurt to visit either a CPA or an enrolled agent. Avoid the shingle-hangers, tax preparers who are neither of those, as they are usually strictly reliant on the software and often turn out shoddy work. CPA’s and enrolled agents must undergo rigorous training. It’s not easy to become either. Do ask your preparer how he/she bills, as many of them, like auto mechanics, work off a schedule and charge $X for this form, $X for that form, without regard to actual time. Those who charge by actual time are usually more reasonably priced. ut remember that if you think the fee unreasonable, you are paying for time, knowledge, and liability.
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