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Who doesn’t love to save money? But as the saying goes, sometimes you have to “spend money to make money”; and when it comes to tax season, it’s a time when money is on everyone’s mind.

 

Some tax filers are more comfortable choosing low-cost tax preparation options, such as TurboTax and other off-the-shelf software, or they opt for inexpensive tax preparers. The issue is, you may be losing more money than you are saving.

 

With low-cost Tax-Preparation Methods, taxpayers run the risk of:

• Missing Out on Refunds

• Missing Out on Credits

• Tax Penalties

• Interest Charges

• IRS Audits

• Extra Tax-Preparation fees for Amended Returns

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So why run the risk with low-cost, ineffective service?

 

Continue reading and decide, Save Money with Risks, or Buy your Peace of Mind by hiring a professional? 

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In some instances, when a taxpayer’s return is straightforward, they may find hiring a preparer not to be an economical decision. However, even in such cases, taxpayers may require consultation to avoid repercussions stemming from costly mistakes.

 

The quality of consultation differs; a low-cost preparer may not be able to offer consultation at the same level as an affordable tax expert. Therefore, quality and pricing are always correlated.

 

When you’re paying for a premium service, you’re paying for more than Tax-Preparation; you’re paying for peace of mind, for a tax professional who is up to date with federal, state, and local tax laws.

 

A premium tax preparer can examine your situation, recommend exemptions and deductions you may qualify for, saving you money in the long run; whilst making sure your return coincides with the provincial and federal tax laws to avoid any future audits or penalties. Mistakes with the tax returns can lead to higher refunds but a taxpayer may get audited in the future and pay back the refund with a penalty.

 

Whether you are married or plan to get married, changed occupations, moved, had a child, went to college, or just graduated; hiring a tax expert who can thoroughly examine your situation is advantageous.  

 

These important milestones can impact your tax refund or liability in major ways.

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A premium accountant can help you navigate through these changes to minimize your liability

or maximize your Refund.

 

• Marriage goes beyond filing status, while most prefer to file jointly there are some cases where filing separately makes sense.

 

• Mistakes with erroneous depreciation or amortization of personal assets can be costly.

 

• Mortgage, interest, and donations to charity, to list a few, require comprehension of tax laws and forms; a service only a premium tax expert can offer you.

 

• And credits offered to individual taxpayers come with nuances that only a professional can help you with.

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To list a few, individual taxpayers may or may not qualify for: 

• CTC | Child Tax Credit

• EIC | Earned Income Credit

• AOTC | American Opportunity Tax Credit

• PTC | Premium Tax Credit

• LLC | Lifetime Learning Credit

• RCEP | Residential Clean Energy Property

• ATC | Adoption Tax Credit

• FTC | Foreign Tax Credit

 

To reiterate, depending on your scenario, your premium tax preparer can recommend the most beneficial filing status, credits, exemptions, and deductions; all while making sure your scenario concurs with current regional tax laws to ensure you don’t get penalized, charged interest, audited, or have to amend your tax return.

 

• A taxpayer may save 100 dollars by choosing an inexpensive tax-preparation method but due to a costly mistake, they would have to hire a professional preparer to amend their return for 250+ dollars and possibly pay penalties to the IRS with accrued interest sometimes being hundreds of dollars.

 

So why save now just to pay more later?

 

By choosing a premium service, you save time and money in the long run and avoid possible risks that come with more low-cost tax preparation methods.

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AAP | Advanced Accounting Practice

Your One-Stop Accounting Firm | AAP Handles Your Financials from A to Z

 

Contact Us:

(646) 655-9696

aseyam@aapnyusa.com

 www.aapnyusa.com

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