Save Money on Tax Preparation

It’s a necessary thing—preparing your taxes, but you don’t have to spend a lot of money doing it. Here are some money-saving tips to consider when thinking about getting your taxes ready.

E-filing is a very good idea. When you e-file you save time getting your refund. Those refunds will come back to you in about two weeks of e-filing. That means you can put your money in an interest-bearing account and make it work for you while others are waiting for snail mail.

You can get free tax preparation. If you make under $50,000, you can get free tax preparation at IRS.gov. Some states also offer free tax preparation. Check with Taxadmin.org for a list of these states.

You don’t have to buy tax preparation software. You can actually go to sites like Turbotax.com and Taxcut and use their software online free. In addition, the H&R Block at Home Free Edition includes everything consumers need to prepare and e-file their simple tax returns online for free.

If you are going to hire a tax preparer, remember they are not all equal.

Avoid any preparer who promises to save you more in refunds or who will base her fee on the percentage of your refund.

Make sure a preparer you hire checks out with the Better Business Bureau or your state’s accountancy board. The preparer should also be a member of his professional organization like the American Institute of Certified Public Accountants.

H&R Block’s fees start at $39 and if you prefer using online services, their software for more complex forms start at $29.95, and the average cost for tax preparation is $187 vs hundreds of dollars charged by a CPA.