Most people desire to receive as big of a tax refund check as possible. Having a tax preparer file taxes on one’s behalf cuts into the size of the tax return. Therefore, some people prefer to file online, themselves, using tax software or go to a fly-by-night company that leases space short-term during tax season. If you’re looking for tax preparation long island ny, Here are two reasons why you should forego the DIY tax return model and invest in a CPA firm.
Complexity of Tax Filing
Unless you file an EZ form, the odds are that your return has some level of complexity to it. Tax code is lengthy, cumbersome and confusing. If you have more than W-2s, such as K-1s or 1099s, the return may not be as straightforward as you think. Answering yes or no in a series of online prompts may not be clear cut, and preparers at small franchises may not be educated on the nuance of tax filing and preparation whereas as a CPA is licensed and the safer bet. It is always better to avoid fines and penalties down the road.
If you are a small business owner, contract employee with multiple places of employment, or have numerous real estate or investment properties, then you would benefit from a CPA firm. Not only can they prepare your individual tax return, but they can also file your business taxes. They can also offer services like estate planning. And, of course, they’re there throughout the year to answer questions as they arise.
If you have a simple W-2 requiring a 1040-EZ filing, you are well-suited for an online tax preparation. However, if you have any complexity to your tax return, a licensed CPA firm may benefit you. Sometimes the risk of not taking advantage is greater than the reward.