Comments on: Outsourcing Tax Preparation: Admit Your Limitations

By: Mike M

Mike M — Sat, 21 Mar 2009 19:12:55 +0000

I am a tax preparer. Don’t be fooled… I’ve caught many mistakes from H&R Block because people don’t have everything they need and it’s just easier to plug a number to save time… at the cost of the client. I’ve also had to fix clients mistakes from Turbotax. Unless you know taxes, even with the most user friendly software, you have a good chance of missing things or doing it wrong. I hired someone to help me this year. She took a course from H&R Block and passed with flying colors. The first four returns she did for me had to be re-done by me due to errors.

Think twice about “trying it” yourself… it could pose headaches down the road if done wrong. Not to mention the fact that you don’t know IF you cheated yourself. One return I fixed got the person back $300 more! So much for saving $100 to do it on your own huh?

Let a qualified independent professional prepare your return. Ask around to your friends and family. There a many private preparers (many are CFO’s of small businesses that came from CPA firms) out there that charge a reasonable rate for tax prep. Personally I think H&R is very expensive.

You should pay $125~175 for a standard return, including stock sales, itemized deductions, and e-file.

Mike

By: AndyS

AndyS — Mon, 07 Apr 2008 20:48:21 +0000

Peace of mind is one of the main reasons I pay the extra accountant fees. Also as I have some overseas income, it helps to have a pro deal with some of the tax laws. However it is important to choose the right accountant, but that is a seperate post and one that I will be looking to do in the near future.

By: Rob Carlson

Rob Carlson — Mon, 07 Apr 2008 16:45:08 +0000

This last year my wife did a few hours of work for a cooperative and got $69 of FARM INCOME. For the uninitiated, this is a 1099 that must be filed on a totally separate form from other 1099s. I probably would have spent an hour or two just figuring out this one form and worrying whether I got it right (or not knowing about it at all and doing it wrong). My accountant of 4 years now invoiced me $20 for the extra form and saved me a ton of worry.

By: Todd

Todd — Mon, 07 Apr 2008 02:49:42 +0000

Currently, my wife and I spend about $250 per year on tax prep fees. Granted, I think I could do our taxes with a software program, but, what is the real cost of that ? $50 each year for the software + time trying to assess any changes in tax law that affect us + worrying that I’ve missed something + any refund $ that a true professional might be able to get us (that we don’t know about).

If my tax prep cost $500, I might reconsider, but, at $250, I’ll let a real pro do it for me.

By: The Digerati Life

The Digerati Life — Sat, 05 Apr 2008 22:05:33 +0000

My tax prep fees have grown steadily over the years, but we’ve got erratic income and things have just gotten so much more complicated over the years. If I could only pay anything close to $350, I would jump with glee. Wait, the last time I paid that was somewhere in the mid-1990’s! Gah.

By: Stngy1

Stngy1 — Sat, 05 Apr 2008 20:41:53 +0000

Don’t forget you’ll get a tax break (on the tax prep fee) next year if your preparer is liscensed!