Many people start to worry when tax season comes around. Some are worried that they will owe a large tax bill, and others fear that they won’t get their taxes done by April 15th. With all the tax preparation websites today, more and more people are doing their own taxes. According to e-File, over 72,220,000 taxpayers prepared and e-filed their own tax returns.
Although you can prepare your own taxes, there are several reasons why it is best to work with Denver tax filing services.
#1 You Want the Best Return Possible
When tax season approaches, many people start thinking about what they will spend their refunds on. If you have big plans for your tax return, such as paying down debt, taking a vacation, or an expensive purchase, you will need the highest possible return.
If you prepare your own taxes, you could miss deductions you qualify for, which will affect your refund. If you have a tax filing service preparing your taxes, you can be sure they will find every deduction that applies to you, ensuring you get the highest return possible.
#2 The Tax Laws Are Always Changing
According to Investopedia, the Internal Revenue Service updates tax rates, allowances, and thresholds every year; therefore, it can be challenging to stay up-to-date with the most recent tax laws. If you aren’t aware of the changes that have been made, you can easily make a costly mistake on your taxes.
Because tax laws are constantly changing, it is best to have your taxes prepared by a professional. Tax professionals understand the newest tax laws, and you can be sure that your taxes will be prepared correctly, ensuring your return won’t be useless.
#3 Saves Time and Money
Preparing your own tax return can be very time-consuming, even if you use an online tax preparation website. Depending on how complicated your return is, it can take hours to complete. Many people realize how time-consuming tax preparation can be, so they often wait until the last minute, which can be stressful, and you will need to wait longer to get your refund.
Some people prepare their taxes themselves to avoid paying a professional; however, one minor mistake on your return can end up costing you more money than you hoped to save by preparing your own return.
Working with Denver tax filing services will save you the time it takes to file your return, and you won’t need to worry about losing money if you make a mistake.
#4 Not All Tax Returns Are Simple
If you have no children, no investments, your income is wages that come on a W-2, aren’t running your own business, and don’t have taxable bank interest, your tax return is considered simple. However, if any of the above apply to you, it is best to have your taxes prepared by a professional. Each of these situations can make your tax return complex, and if you don’t have much knowledge of tax law, it is easy to make an expensive mistake. A professional will know which forms to file, what can be claimed and what can’t; therefore, you won’t need to worry about errors on your return.
#5 Avoid An Audit
According to the IRS, around 300,000 of the 25 million returns filed are audited. There are a few red flags that can trigger an audit, including:
- Unreported income
- Breaking the rules on foreign accounts
- The lines on business expenses are blurred.
- Excessive credits or deductions
- Excessive home office deductions
- You earn over $200,000
If you prepare your own taxes and make a mistake or fall in any of the categories listed above, you can expect an audit from the IRS, which can be extremely stressful. Working with tax filing services will ensure your return is filed correctly, reducing the risk of an audit. In addition, if you are audited, your tax specialist can help you through the entire process.
With tax season around the corner, it is time to start thinking about how you will file your return. If you want to be sure your return will be filed correctly and you will get the best possible return, it is best to make an appointment with tax filing services.