Wednesday, September 9, 2020

Should You Pay for Professional Tax Preparation


So, you’re considering paying a professional to file your taxes for you in the next tax year. Obviously, this type of service doesn’t come for free, so you may also be wondering whether or not it’s really worth it. The answer, quite honestly, is yes! As long as you find a qualified preparer, hiring a professional could save you money, time, and stress.  



With that said, though, you’ll want to be careful not to overpay for your tax preparation services. After all, one of the main reasons to hire a professional in the first place is to spend less money!

How Tax Professionals Price Their Services

Different tax preparers come up with their pricing structures in different ways. Some, for example, will just charge a set fee for each form a person needs filed. Others will charge per item of data entry. Then, you have individuals who charge a value-based fee, an hourly rate, or a minimum fee and complexity fees if necessary.

In some cases, knowing how a preparer determines their pricing can give you a good idea of about how much you’ll be expected to pay for the service. So, don’t hesitate to ask how a preparer arrives at their rates.

Request Estimates When You Can

Some tax preparers are willing to offer estimates on their services, which is a lot simpler than you asking about their pricing structure and then trying to come up with an estimate of your own.

Bear in mind that you’ll likely have to provide pretty specific information in order to get these estimates. But, the nice thing is that, if you get several estimates, you can compare them in order to find the best deal.

Remember, though, you don’t always want to just jump on the lowest price. Ultimately, you want a preparer who is qualified and who makes you feel comfortable and confident about your return . . . even if that means you end up paying a little bit more for their services.

At the end of the day, it’s up to you to choose the right tax preparer. But, there’s certainly nothing wrong with trying to save some money in the process.

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