Using A Tax Software Is Cheaper Than Using An Accountant

1212 WordsMay 7, 20175 Pages
Some people think that using a tax software is cheaper than using an accountant. Although it is “cheaper” up front, taxpayers have a better chance of getting more money back when they use a personal accountant. This is because not everybody knows what to deduct off their taxes. A few examples are tuition and fees, Individual Retirement Account (IRA) contributions, student loan interest, and many more. Also, some teachers might not know that they can deduct classroom supplies off their taxes, or someone who just moved might not know that they can deduct moving costs from their tax return (Lasser, 2017). Thus, it must be stated that not all taxpayers know what to deduct. People who are audited are usually audited because of something…show more content…
One issue with working with an accountant from a firm is that the accountant usually has more clients then the normal accountant. So, instead of being able to stay for an hour or an hour-and-a-half to go through your taxes, a taxpayer might have to only stay for thirty to forty-five minutes because there are more clients on the way. However, the main thing that taxpayers should watch out for is instant tax return loans. The firms gives a client a loan, but like every loan, there is interest involved. That means taxpayers will pay back more than what their tax returns was. The issue with this is that low-income taxpayers might now be able to pay them back, which will hurt their credit. Using an accountant is much better than using a tax software for many reasons. For one, it is easier for someone to lie with a tax software. They can say that that made ten-thousand dollars in revenue, so they can pay less in taxes. Also, they can take out more deductions that they are not authorize to deduct This is a problem because this is considered fraud and if they get caught, they will be in serious trouble by the IRS. Using an accountant will help save taxpayers from getting in serious trouble with the law. However, sometimes people rush through filing their taxes with a software. They might accidently put that they made a loss instead of a gain and could get

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