Handle The Most Complicated Income Tax Preparation
Tax Preparation: Choose the Best Option
We all know that tax preparation is necessary do kind of thing, after the completion of each fiscal year. There are many who receive it as a burden and headache. While we are not short of such people as well, who file their tax return in a pleasant way. Whether, we like it or not it is an obligation and there is no other option available. Each year millions of Americans go through the process of tax return filling. We can observe different people, filing their return in different ways. In fact, we are lucky to have a wide range of possible options available.
Know Your Options
Before moving ahead with the preparation and filing of the tax returns, it is better to know and understand all the possible options that are available for you. Here we want to clarify that each of the options available comes with a set of cons and pros. Therefore, it is all up to an individual, and he or she must consider the most appropriate one.
The first option, DIY
Do it on your own! These words are being used to convince people for carrying out certain interesting tasks. This model is also applicable to tax preparation as well. There are many Americans who believe this to be the most effective options especially in terms of cost. Here, it's important to understand that the IRS system is available through the internet using that anyone can process his tax-related requests from home or office and cell phone or a laptop. The IRS operated system for tax filing is known as the Free File. Now there are two possibilities,
Free access to tax preparation programs
Free fillable forms
The first option is available free of cost for those who are earning less than a predefined money annually. Currently, this limit is set at $60,000. Which means that, if your annual earning is less than the amount mentioned above than you can use the several software solutions like,
H&R Block at Home
The second option, “free fillable” forms are available for those who are not eligible for access to the IRS sponsored tax preparation programs. However, an individual is free to prepare and file his return with the help of any such program by paying for it.
In general, DIY basis preparation and filing of the return is a good option for low-earning taxpayers. What all you require is to fill Form-1040 or 1040A. Both of these forms are available for individuals filing as, “singles”. However, the form 1040 is more complicated, comparatively to 1040A, which is called short form.
The Second Option
The second option for tax preparation, in fact, is the most widely used option. This option involves a certified, skilled and experienced professional to assist you through the process. The, hired professional provides his or hers services against a pre-agreed compensation. Each year, the majority of the Americans hire a tax professional to complete the due process of tax prep and filing of returns timely and effectively. There are many who have some reservations in acquiring an external in tax related matters.
The IRS Recognizes External Support
However, IRS itself has an extensive plan to facilitate both the taxpayers and contract preparers. There are various possibilities when it comes to seeking a tax professional. One can opt to go with an attorney, a certified public accountant or with an enrolled agent as well. To make this process easy and simple IRS has announced that anyone with a valid PTIN number can file a tax return on your behalf. Whereas the PTIN number here is referring to a unique ID number, which IRS allotted to those who meet the criteria to work in the capacity of tax preparers.
Hire one, with care
Though hiring a professional is the best option available but you should choose one, carefully. Don't forget that a lot of people become victims of fraud in each filing season.
Always remember to opt for a professional for your income tax preparation.