Bigfoot, the Loch Ness Monster, and Pukwudgies (Native American Gremlins thought to have terrorized New England), are make believe. Still, these mythological beasts are big business and folks spend millions of dollars buying into these fantasies.
Likewise, taxpayers pay vast sums of cash because they’re led to believe things that just aren’t true. And like the vendor at the Loch Ness souvenir shop, your friendly neighborhood accountant will be happy to provide his services - if you believe in fiction.
The truth is you can do it and just as accurately as any CPA. If you’re single, rent, make less than six figures, and don’t claim to be self-employed, just fill out a 1040EZ. If your situation is more complex, there’s some terrific tax preparation software that can help you get the job done.
If you file a simple return with TurboTax, the return is free. If your situation is more complicated, (like you’ve got investments and rental property), it will only cost you $30 to file. And if you have your own business, TurboTax will charge you a measly $75 to get you through your return. But if you use a CPA, expect to pay those amounts many times over.
Some accountants will try to appeal to your greedy side in an attempt to make you believe that only they have the key to unlock the gate to tax break heaven. They’ll claim their service will easily pay for itself but don’t take it at face value. If your situation is basic, there’s no mystical tax advantage that will drastically lower your tax liability. You don’t need an expensive accountant to gain that bit of wisdom.
And if you need a helping hand, all you have to do is use an appropriate tax prep software. These services are thorough, accurate, and detailed – essentially the perfect accountant. And these platforms triple check your return to ensure that you get you all the deductions and credits you deserve.
While you could mess up, so could any accountant and most of them do. Get this, after conducting a limited study of tax preparation chains (in major metropolitan areas) the Government Accountability Office concluded that all of the returns completed in those offices had errors. Yes all.
So what is an honest taxpayer to do? One alternative is to use a tax software like TurboTax and in the unlikely event an error is made, the company guarantees to cover the mishap. And while your accountant may represent you, I doubt he’s willing to offer you that same piece of mind. Now everyone makes mistakes, but do you really want to pay up because your accountant fouled up?
This is one is the most powerful weapon’s in a CPA’s arsenal. By instilling you with this dark foreboding, accountants ensure your dependence. Still, for those who earned less than $100K in 2008, fewer than 1% got audited. If you’re honest and do your taxes right, a nerve-rattling audit isn’t likely.
Newsflash, the more returns accountants prepare, the more money they make. So do you really think they want to spend extra time with you? If you choose to do it yourself, there’s no need to rush, you can do some research, take your time and do it right. Just be sure you get it done by April 15th.
If you go the tax preparation software route, most platforms allow you access to live customer service via phone or an online community. In fact, these platforms are supported by some bright tax professionals who won’t charge you for their advice. Even an accountant would have to admit that this is a pretty cool feature.
More and more taxpayers are realizing it just doesn’t make sense to spend an arm and a leg on a CPA. So follow their lead and set yourself up with an affordable tax software provider that prepares and triple-checks everything for you. Then use the amount you save to get something you really need, - like your very own Pukwudgie.