By April Reese
University of Georgia
Not everyone needs professional help to file their tax
returns. Many people, though, still pay for help. But who should
file your returns? And how much will it cost?
“Unfortunately, filing a tax return can be a daunting and
complicating process,” said Michael Rupured, a consumer economics
specialist with the University of Georgia College of Family and
Consumer Sciences. “The vast majority of people do turn to some
kind of preparation assistance.”
Shop around
Rupured urges people to shop around.
“I think it’s important,” he said. “There are differences in
paid
preparers. Some are large, commercial preparers, national
organizations that do a lot of advertising. And some are mom-and-
pop operations. Their qualifications may vary.”
Rupured said there are things to look for when deciding on a
preparation service.
Check qualifications and rates
“First, find out the qualifications of the individuals who
will
be doing your return,” he said. “However, most companies use
computer software that makes it very difficult for them to make a
mistake.”
He said it’s also important to check rates.
“The company may charge you a different fee for each form
you’re
required to fill out,” he said. “There may also be an additional
charge if you want to e-file, electronically file your
return.”
Another cost to watch out for is associated with refund
anticipation loans.
Rupured said some companies will lend a customer money in the
amount of the refund so the customer doesn’t have to wait for the
Internal Revenue Service.
“Now, if you file your return electronically, you can arrange
for
direct deposit of your refund into your checking or savings
account,” he said.
“If that return is transmitted electronically to the IRS by 11
a.m. on Thursday,” he said, “the IRS promises your return will be
credited to your bank account no later than the following Friday
(assuming
there are no problems with the return). That being the case,
there is no reason you should pay a couple hundred extra dollars
for a refund anticipation loan.”
Free tax services
Free tax help is available for the elderly and those with
modest
incomes.
“Tax Counseling for the Elderly is a partnership program
between
the IRS and AARP,” Rupured said. “It offers free tax return
assistance for senior citizens.”
There is also the Volunteer Income tax Assistance Program, or
VITA. It provides free tax help to low- or moderate-income
families. In general, if your income is less than $40,000, you
will qualify for services. To find the nearest site to you, call
the IRS at 1-800-829-1040.
Do it yourself
“Very few people are comfortable filling out their tax
returns on
their own,” Rupured said. “Tax laws are complicated, and people
are afraid of making a mistake. Tax professionals can certainly
be a valuable resource in those situations. But everyone doesn’t
need to go to a paid professional to file their returns.”
If you do feel comfortable filing your own taxes, there are
several ways to use your personal computer to file.
“The first way is to use some type of software package that
allows you to do that,” he said. “Another way is to go to a Web
site. A number of the larger commercial preparation services have
a Web site where you can actually go and enter your return
on-line. Of course, there’s a fee for this service.”
