Filing taxes can be a daunting task, but it doesn't have to be. Whether you're filing your taxes yourself or with the help of a professional, understanding the process and the costs associated with it can help you make the best decision for your situation. The cost of filing your taxes yourself depends on your income, marital status, age, and other factors. If you have a simple tax return with no itemized deductions, you can usually file for free using tax software like TurboTax.
However, if you have a more complex return or want to make sure you're taking advantage of all the deductions and credits available to you, you may want to consider hiring a professional. The federal government decides how much tax you owe by dividing your taxable income into parts (also known as tax brackets), and each part is taxed at the corresponding tax rate. The progressive tax system in the United States means that people with higher taxable incomes are subject to higher federal tax rates, and people with lower taxable incomes are subject to lower federal tax rates. When filing taxes online, your return should be processed in approximately three weeks.
You can also request that your refund be sent via direct deposit, which reduces wait time. You can track the status of your IRS refund and your state refund online. If you don't want to do your own taxes, there are many options for getting help from a professional. Tax software providers like TurboTax offer access to human preparers who can answer questions, review your return, and even file your taxes online for you.
You can also seek guidance from a certified public accountant (CPA) who can provide financial services beyond basic tax preparation. The cost of hiring a professional depends on the complexity of your return and the services you need. Tax preparers typically charge an hourly rate or a flat fee for their services. CPAs usually charge an hourly rate or a percentage of the total amount of taxes they save you.
No matter which option you choose, it's important to make sure that all of your documents are in order before filing your taxes. This includes Social Security numbers for you, as well as those of your spouse and dependents, if any; last year's federal and state tax returns; and proof of income, expenses that could be tax-deductible, or earn a tax credit, and evidence of the taxes you already paid during the year. Filing taxes doesn't have to be intimidating or expensive. Understanding the process and the costs associated with it can help you make the best decision for your situation.
