Should You Prepare Your Own Federal Income Tax Return? Some Pros and Cons

It's the time of the year again that many of us dread -work! There is something to be said for handing over
tax time! Thoughts of mountains of paper, boxesyour pile of papers to the accountant, and having them
crammed with junk and short tempers come to mind.hand you back a finished product. The expense to do
It's the last thing on your mind during the holidaythis has to be factored in big time, though.
season, and many times one of the first things toHaving an Accountant Prepare Your Income Taxes
sneak up on you in the first few weeks of the newfor You
year.Pros:oGather up your pile of "stuff" (papers), and drop
There's no escaping it.them off at the accountant's office. In a few weeks or
So what to do? Do you bite the bullet, buy someso, you'll have a nice, neat finished product.
fancy-pants software package and hope for the best,Cons:oYou actually have to leave the house to drop
or shell out what could be some serious beanos tooff your information. There is always the chance your
have a tax preparer or accountant prepare yourconfidential documents could get lost.oOther people
taxes for you? Here are some pros and cons forhave access to your private information, including social
each.security numbers, bank statements and investment
Do-It-Yourself Tax Preparationaccount statements.oYou have not been involved in
Pros:oYou can e-file from the privacy of yourthe preparation of your income tax return in a
home.oYou can file instantly. No need to wait until the"hands-on" way; you have to hope the accountant has
accountant can fit you in.oNo need to schlep tons ofdone exactly what they said they would and that it's
paper to the accountant's office, possibly never to becorrect.oIt is not cheap to have your tax return
seen again!oYou can save a pile of money by doing itprepared by a professional. Rates can run from a
yourself.oNobody knows your financial situation bettercouple of hundred dollars up to several thousand,
than you.depending on your circumstances.
Cons:oYou can't buy just any-old software. You haveAll in all, it will take a little bit of soul-searching to decide
to make sure it's from a reputable and trustedwhich way is better for you. But don't wait too long -
authority who guarantees their calculations and standsApril 15th will be here before you know it!
behind their product.oYou'll actually have to do the