Which Tax Service to Use

With the tax deadline looming larger, an age old tax question, "Who to turn to for tax preparation?" A tax service like H&R Block or Jackson Hewitt? Or Tax accountant? Or mom-and-pop service? Or do it yourself online? Well that all depends on your financial situation. We share our personal opinions based on experience and reports.

FILING YOURSELF ONLINE
First, for the most basic tax situations, you can file online for FREE (state returns require a fee). For example if you're young (in your 20's), single, live at home with parents or rent and have nothing to deduct, and are 100% comfortable with accounting and finances, you may want to file yourself online with programs like Tax Turbo or H&R Block online. However, we caution, if you're the slightest bit uncomfortable, always turn to a professional. Untangling returns years later can be daunting and costly. It is reported that the IRS will audit or contact you at least once in your lifetime.

NO to MOM-and-POP SERVICES
While we generally, wholeheartedly support small businesses and entrepreneurs, our exception is the mom-and-pop tax sevices. We have heard countless nightmare stories of the high rate of mistakes, how they will not help you if you return even though it was their error, and the hundreds and thousands of dollars it costs customers to correct the tax return.

TAX SERVICE
Tax services like H&R Block or Jackson Hewitt are reputable organizations. However, based on our personal experience, we strongly recommend that if you have to file anything more than a 1040 or basic return, have deductions, if you refinanced, have investments, run a business--REQUEST A TAX PREPARER WHO'S A CPA OR HAS BEEN DOING TAXES FOR MORE THAN TEN YEARS. At these services the price you pay depends on the complexity of your return and you are charged per form.

The advantage with these tax services is that they cost less than hiring a CPA from an accounting firm. The key again is to ask for someone with years of experience.

CERTIFIED PROFESSIONAL ACCOUNTANT (CPA)
Of course you can rarely go wrong by turning to a CPA. These professionals have to pass probably the most difficult exam in this country. They are highly knowledgeable and are required to keep up with new tax laws.

If you're income is over $75k, if you own more than one property, live outside of the country part-time, have numerous investments, medical bills and other complicated finances, the best route is hiring a CPA. Corporate executives, multi-multi millionaires, and business owners usually hire a CPA. It's helpful to have "people" who know your situation for many years.

WHICH TAX SERVICE DO ALICIA & CHRISTINE USE?
So who do Alicia and Christine use for preparing their tax returns? Alicia uses H&R Block in Minnesota. She always makes an appointment with a tax preparer who has over ten years experience.

Christine has been going to a CPA in Miami, Elizabeth Andrade (lizandrade@juno.com) who offers tax preparation independent of an accounting firm. Christine is fortunate that she's getting the ultimate tax professional for discount price. It's like getting a $500 fashion designer dress for $100 at Marshall's!

Christine highly recommends Elizabeth for anyone living in South Florida. "While I may be frugal with certain purchases, the most important expenditure is hiring the right tax professional. I never want to be alone when the IRS contacts me," says Christine. Elizabeth has been doing taxes for 30 years and has helped me with complex returns. She also speaks fluent English and Spanish, a big plus in Miami.

Please share your experience and thoughts! Who do you use and why? Click on "Comment" below to add your input.

For other TAX TIPS TO PROTECT YOURSELF, click here.

Note: We have not received any compensation from any tax service or CPA for this posting.

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