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Tax Software VS. Tax Preparer: Why Hire A Professional?

One of the necessary requirements of life is paying taxes when that time of the year comes around. For many, the primary goal is to ensure they’re done correctly. One decision you’ll need to make is whether you’ll use tax software or hire a Denver tax advisor. Here are a few good reasons why it’s better to leave it to the experts. Knowing this information can help you make a wise decision when it comes to filing taxes correctly. 

What is Tax Software? 

There are options out there that allow you to complete taxes on your own. As technology has improved, more options are out there that allow families to file taxes without assistance from an expert. However, there are several disadvantages to using a software service. The average tax return for the year 2020 was nearly $3000, and with a large sum of money, you’ll want to make sure you’re entitled to every dollar. 

  • One of the biggest drawbacks of using software rather than a tax preparer is you have no one to turn to if you have a specific question. 
  • Using tax software can quickly become confusing should you have self-employment income or own a business.
  • You’re more likely to get an audit by the IRS if you make a mistake you’re unaware of.

What Is A Tax Preparer? 

 Tax advisors are authorized to prepare your federal return. It’s their responsibility to keep current with tax rules, regulations, and to file your taxes accurately. Choosing a trusted professional has specific advantages that using software can’t provide.  The most obvious benefit is you’ll know who your tax advisor is rather than trying to figure it out on a software program alone. 

  • Tax advisors are available all year to help clients with any tax concerns- they have expertise working with nearly any tax situation you can imagine.
  • You’ll have peace of mind knowing your taxes are done correctly, which far likely reduces the chances of an audit from the IRS.
  • They have credentials and continued training to help with more complicated tax scenarios

The Bottom Line On Using A Tax Advisor Over Tax Software

You might think it’s far easier to file taxes on your own, but it can quickly become overwhelming which can lead you to make mistakes. A tax advisor is always just an email or a call away, so you can get the help you need. More importantly, they can help you establish a long-term working relationship with an expert you can trust for years to come.