Millions of taxpayers rely on tax professional return software and apps to help them prepare their returns. While these tools can be helpful, they also have some pros and cons. What are they?
The Advantages of Using Tax Professional Prep Software or Apps
With the technology we have today, it’s not surprising that there are software programs and apps that can file your taxes for you.
If your situation is simple, you can submit your return to the IRS with just a few clicks or keystrokes. Here are some of the advantages of tax prep software:
– Affordability
Most tax prep software programs are reasonably priced, and many offer free filing for federal returns. This can be a big saving over paying a tax preparer to do your return.
– Convenience
Using tax prep software is a convenient way to file your taxes. You can do it from your home computer, and you don’t have to worry about finding a preparer and making an appointment.
– Accuracy
Software programs are extremely accurate, and they are updated each year to reflect the latest changes in the tax code. This can help ensure that your return is filed correctly and that you receive all of the tax breaks to which you are entitled.
– Ease of Use
Most tax prep software programs are easy to use. They walk you through the filing process step-by-step and provide help if you have questions.
If you are considering using a tax prep software program, be sure to do your research to find the one best suited to your needs.
The Disadvantages of Using Tax Prep Software or Apps
There is a greater chance of mistakes.
- The IRS can look at your return more closely if it is done using software.
- You will still be responsible for making sure the information you enter is accurate.
- You will not get a professional to ask questions and help you figure out your return.
- There is a risk the software will not work with new updates to the tax code.
When Should You Hire a Tax Professional Instead
If your tax situation is complex or you’re not comfortable filing your own taxes, you might want to hire a tax professional.
There are a few key indicators that suggest it might be time to hire a tax professional instead of preparing your own taxes.
If your financial situation has changed dramatically in the past year, you’re self-employed, or you have rental properties, for example, you might want to consider professional help.
Other times when it might be beneficial to hire someone include if you’re dealing with an IRS audit or if you have questions about the tax law that you need answered.
Ultimately, if you don’t feel confident in your ability to prepare your own taxes, it’s probably best to seek professional assistance.
To Sum Up
There are pros and cons to using tax return apps and software. On the pro side, they can save you time and money. On the con side, they may not be as accurate as you would like, and you may have to pay a fee to use them. Ultimately, the decision of whether or not to use tax return apps and software is up to you.
Keystone Tax Solutions is a reliable tax return software for tax preparers. Get started now!
