By Michael Rupured


University of Georgia

As tax season rolls around, many people begin to look for help to
prepare and file their returns. Some prepare their own returns.
But most turn to local tax services and pay to have their taxes
filed.

When you shop for tax preparation services, remember that not all
services are alike. Comparison shopping can save you money both
in the fees you pay for the service and the amount of taxes you
owe or the refund you’re due.

Free tax help may be available

Before you pay someone to prepare and file your tax return, find
out if you’re eligible for free tax help. The Volunteer Income
Tax Assistance program provides volunteers trained by the IRS to
prepare, and in most cases, electronically file returns. These
services are free in most cities and in many rural areas.

The VITA program targets people eligible for the Earned Income
Tax Credit. These are working families with children and
household income less than $34,500. Call 1-800-829-1040 for the
VITA site nearest you.

Senior citizens can often get free help preparing and filing
their returns through the AARP Tax Counseling for the Elderly
program. TCE will usually prepare returns for EIC-eligible
households and senior citizens. The IRS can help you find a TCE
site near you.

If you’re not a senior citizen and earn too much for VITA, you
can either prepare and file your own tax return or pay for help.
Options range from professional accountants to commercial
preparation chains with in-house training.

If you have to pay for help, shop around

When you use a paid tax preparer, expect to pay a fee. This
varies greatly from one provider to another. It pays to shop
around.

The fee you pay will also depend on the complexity of your
return, the number of forms required and any extra schedules
needed.

Most paid preparers will also charge for electronic filing,
typically $10 to $15. Electronic returns are processed much
faster than paper returns. A refund from a return electronically
filed on Thursday of this week will generally post to your
account by Friday of the following week if you designate it as a
direct deposit.

Many companies now promise to give you your tax refund on the
spot. These refund anticipation loans may sound like a good idea
but these short-term loans are an expensive way to get your
refund.

With electronic filing and direct deposit, the IRS will deposit
your refund into your bank account within seven to 10 days. It
doesn’t make good financial sense to spend several hundred
dollars to get your refund a few days earlier.

Whether you pay for your tax return or do it yourself, always
choose electronic filing with direct deposit of your refund
instead of a high-cost refund-anticipation loan.