The time for filing taxes comes around every year, at which point we start gathering our W-2s, 1099s, and any other relevant paperwork. If you would rather not do your own taxes but instead have someone else do them for you, the conventional alternative has been to go to the office of an accountant and drop off your paperwork there. However, as a direct response to the pandemic, full-service online tax preparation services that are staffed by certified public accountants (CPAs) have become increasingly popular. When deciding whether to use an online CPA service or an in-person CPA, it is essential to take into consideration the intricacy of your tax return, the manner in which you wish to communicate with your CPA, and the amount of money you are willing to spend. This article will provide you with a more in-depth comparison of CPA services that are offered online versus those that are offered in person, with the goal of assisting you in deciding which approach could be more beneficial for your taxes.
Key Takeaways
- A large number of companies that provide tax software have begun offering live tax support and full-service tax preparation alternatives.
- In-person certified public accountants (CPAs) provide individualized service, which means you can get to know each other and anticipate receiving more individualized advice than you would from certain online CPAs.
- Even if you choose a full-service online tax preparation firm, it is possible to save money by preparing your taxes online. It is important to search around because some huge chains provide prices that are comparable to those offered by full-service online options.
- The process of scanning or photographing tax forms and sending them digitally is more time-consuming and difficult for many individuals than just delivering a stack of papers to an accountant's office.
- Both personal finance and the preparation of one's taxes are matters of a highly individual nature. There is no one solution that is optimal for all users. If you are aware of your financial status, your available funds, and your level of computer expertise, you will be better equipped to make the decision that is most suitable for your requirements.
How Difficult Is It to Fill Out Your Tax Return?
To get started, it is essential to have a good understanding of your current tax situation. If you only have one or two W-2 forms and a few 1099s from savings and investments, your taxes are rather straightforward, and the majority of qualified CPAs should have no trouble assisting you with them. It is also likely to take less time to upload your tax forms online than it would be to drive them to the office of a tax professional. If your taxes are as easy, you might even consider doing them on your own by utilizing tax preparation software that is either free or very inexpensive. These tools can also be used for more complicated scenarios, such as those involving self-employment, independent contractors, and the income taxes of landlords if you are confident in your ability to manage your finances. Working with an in-person certified public accountant rather than an online certified public accountant might be advantageous for you when the complexity of your tax situation increases. If you utilize an online tax preparation service provided by a corporation such as TurboTax or H&R Block, it is likely that you will be assigned to a person who is not familiar with your previous tax filings. This is not an issue with simple taxes; however, it may not be the best option for wealthy households, business owners, or those who have complex investments. If you hire the same accountant year after year, they will become familiar with your circumstances and may be able to provide you with more tailored tax advice as a result. Because of this, it might become simpler for you to confidently give over your tax documents and allow someone else to handle the rest of the work.Are you trying to find the most affordable alternative?
It is possible that you will be charged a higher fee if you choose to deal with a personal CPA in a small practice. The following provides an overview of the current pricing for some of the most popular tax preparation services, both online and offline. No published or transparent pricing has been provided. Working with an accountant who is located in your area will typically cost you more money. According to the National Society of Accountants, the national average charge for filing a tax return using Form 1040 is $220 if the taxpayer does not have itemized deductions and $323 if the taxpayer does have itemized deductions. These rates do not include fees for additional forms. In addition to the choices that have already been presented, there are more businesses, such as Henry and TaxHub, that provide online tax preparation assistance provided only by CPAs. You are able to get in touch with them directly for information on pricing and anything else.What is your current time availability?
If getting your taxes done quickly and easily is your top priority, working in person with a certified public accountant (CPA) is probably going to be your best option. You can hand your tax preparer a stack of forms when you use in-person tax preparation services, and they will take care of the rest of the work. However, you may be charged an additional fee if your documents aren't structured properly. If you want to file your taxes online, you might be required to scan and upload certain papers or provide them in another way. Depending on how familiar you are with computers and mobile applications, completing that activity could be as simple and straightforward as pressing a button or as difficult as having a cavity fixed at the dentist. In either case, once you have submitted your data, there should not be much more work for you to perform. However, before you sign off on your taxes and send them to the IRS, it is a good idea to read through everything and make sure it is correct. If completing your taxes in a timely manner is your top priority, it is in your best interest to look for a certified public accountant (CPA) in your area who can prioritize the work on your taxes; however, this may come at the cost of an additional charge.Have You Gone Through Any Major Life Changes Over the Past Year?
If the amount of money you owe in taxes remains relatively constant from year to year, you probably won't qualify for too many specialized tax deductions or credits. The vast majority of CPAs, both online and offline, should be able to handle your taxes, even if your investment returns are very complicated. On the other hand, if the previous year included any purchases of real estate, transitions in employment, marriage, divorce, or the arrival of new children, or if you spent different parts of the year in different states or countries, you might want to seek the assistance of a CPA who can meet with you in person. Even if you simply want this additional hand holding for a year or two while you discover how these new circumstances affect your taxes, it may still be worthwhile to pay the additional expense for it.