For tax preparation and filing, there are so many options to choose from now that sometimes you just don’t know where to start. Once upon a time, H&R Block and the other retail franchises dominated the tax preparation market. But with the wide acceptance of the Internet and online tax software, more people are choosing to prepare and file their returns themselves. Add to these options the free online tools available through the IRS website and you really do have a ton of options for filing your taxes. But how to choose the right option? I’m glad you asked.
Retail Tax Franchises
We as humans are creatures of habit and once we find a routine we like, it’s pretty hard to talk ourselves into doing anything else. Kind of like your favorite fast food place. Retail tax franchises like H&R Block, Liberty Tax and Jackson Hewitt enjoy long-term, committed tax clients. For those taxpayers with simple returns (generally people with one or at most two jobs), this option is the best for several reasons. Speed and price are the main reasons people continue to use this option. Oftentimes, tax preparers who provide preparation and filing services are more than qualified to handle the various hassles of individual taxpayers with one or two jobs, a house, and one or two children. Plus, you can’t overlook the familiarity and low-risk hassle with these franchises that people expect and enjoy. From year to year, there are no big changes in terms of preparer turnover or price adjustments.
Online tax software
The increase in people using online tax software has skyrocketed in recent years. For some, the aspect of going to a retail tax franchise has lost its appeal or the tax return has become more complex due to more income, different types of income, or dealing in different types of property (personal, investment and commercial) . Even the IRS has encouraged those with simple returns to use free online software tools. Like retail tax franchises, you can expect some cost savings depending on the type of return prepared and filed. Plus, this option gives you the control and confidence to prepare your own return. Although these online tax software packages provide a helpful user experience by using online help options and even having tax experts available to help you with difficult-to-understand sections of the tax code, unless you have a solid understanding of the tax code, you shouldn’t totally rely on what the software recommends. This is where it is useful to have an expert and competent tax advisor.
Unlike these two options, a tax advisor who provides tax preparation, filing and consulting services specializes in understanding the tax code in depth and is available year-round. Like having an insurance agent to call when you have a car accident or home break-in, or even a personal banker when you need a home or car loan, a tax advisor is a trusted advisor who helps provide peace of mind to you in the areas of personal or business taxes at a reasonable and affordable price.
