Tax software like Turbo Tax has gotten extremely popular over the years. It is easy and cheap to use and people get enough of a tax return to satisfy themselves, but it is better or cheaper than taking your tax services to a professional accountant? This is the question we will be exploring in this article. Is the software better than the human? Computer programming and artificial intelligence has gotten extremely complex and sophisticated, but when it comes to taxes who should you trust? Let's take a look together!
Turbo Tax is not the only tax filing software available, but it is probably the best and therefore is the most popular. It is important to note that there are other software options available, but their actual performance and user interface are questionable at best. For the sake of this article we are going to focus on Turbo Tax since it is the most popular DIY choice.
For most people it will cost them about 100 dollars to use Turbo Tax software to file their taxes. The interface is extremely helpful and very clear about how to file certain figures and information. Turbo Tax is compatible with Quicken so if you have all of your finance information already in Quicken you can easily import that into Turbo Tax and save yourself a lot of time. The software allows you to actually chat with a tax a professional live online if you need further assistance, but this feature costs you extra money to access.
All-in-all Turbo Tax is easy to use and is not too expensive for the level of effectiveness it exhibits. The advantages to using this DIY tax software is that you do not have to leave your house, you can file your taxes quickly and effortlessly, and the software is effective and has proven real-world results. However, is it really better than using a tax professional?
The Tax Professional
Having an accountant file your taxes for you is going to cost you more than Turbo Tax will, but do not let that scare you. For one, you do not have to do a single thing except hand over all of your tax information. Filing taxes, even on easy-to-use software like Turbo Tax, can be a pain and an overall frustrating experience. First and foremost, an accountant allows you to sit back and enjoy your tax season without any stress.
Secondly, an accountant, unlike software, knows the intricacies of the tax laws and where you can find yourself more savings. DIY software will never recommend to you new ways for you to deduct more money annually from your taxes, simply because it is a program and it is not thinking creatively. Not only will an accountant file your taxes in a fashion so that you see the biggest possible return, but they will also give you tips and advice on deductions for future tax years so that you can save even more money in the future. So even that upfront cost, which was higher than the DIY software, is moot since overall you are going to be saving more money than through a DIY tax software.
The other great thing about having an accountant versus a program is that an accountant can let you know if anything about your return may raise red flags with the IRS and result in an audit. If you do get audited your accountant can help steer you through that process.
Overall, while tax software is convenient it is not as effective as professional tax services. This tax season go see a professional and see how much money you can save!