Initially, the use of a tax preparation service costs more than filing yourself. Professional accountants, however, can also save you a great deal of time and money down the road. You get the convenience of having someone else do it for you, rather than spending hours reviewing tax minutiae and crunching numbers. Similarly, only Certified Public Accountants or Enrolled Agents – the most competent tax specialists available – make use of the best services. This means that it is guaranteed that your tax return is as accurate as possible. On the other hand, doing your own taxes will open the door to mistakes. A simple math mistake or missed deduction can mess up or even cause you to be audited for your entire return. Every dollar counts when times are economically tough. Our website provides info about Tax Shark.
As such, it may appear inconceivable to spend money on a tax specialist, even if you see the benefit of doing so. However, you may be surprised to learn that it may be tax deductible for the cost of hiring a professional. If your expenses total 2 percent or more of your adjusted gross income, the mileage spent on driving to and from your agent, postage for mailing tax forms to him or her, as well as the cost of the preparation itself, can all be deducted. These kinds of deductions are considered to be miscellaneous and should be reported on IRS Tax Form 1040 in Schedule A. If you want to take advantage of this tax break, make sure you have your accountant itemise your deductions. Not only that, but accounting professionals usually know about deductions that you might not be aware of, so they can increase your deductions, thereby reducing your taxable income. One of the most significant advantages of using a professional tax service is auditing assistance. In addition to reducing your chances of being audited, if one comes up, having a CPA or Enrolled Agent in your corner can provide you with the support and tax expertise you need to pass an IRS audit successfully.