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Saturday, January 3, 2009

The Need for Tax Filing Help

By Peter Donaldson

There are many reasons to get tax filing help, especially if you are not knowledgeable about tax laws and filing tax returns. Most people think that tax laws are complicated and they do not want to prepare their tax returns themselves so they take their tax documents to tax preparation services each year.

Even though it is good to have someone else prepare your tax return, you should know what to do in theory. If you do not understand how to file tax returns or how to claim tax credits or tax deductions, you should definitely ask for tax filing help. You need to know how to do everything yourself even when you are not actually doing it yourself.

Many people rely too much on the tax preparers or tax accountants that they miss out on some tax deductions or tax credits. The tax preparer or tax accountant does not know everything about you and unless you tell him or her, it will not be used in your tax return to your advantage. If you know how to claim tax deductions or tax credits, you can make sure that the tax preparer or accountant claims everything that you are entitled to claim accordingly.

Some taxpayers are brave and do not want any tax filing help. They would rather save the money that they would pay a tax preparation service and do it themselves. Taxpayers can save anything from less than $100 to over hundreds of dollars in tax preparation fees if they do it themselves. It can be worth it but taxpayers must make sure that there are no mistakes that could be avoided.

If a taxpayer makes a mistake in his or her tax return, get tax filing help immediately. There are certain mistakes that will need to be corrected immediately such as income reporting. The taxpayer may need to file an amended return. When an amended return is involved, the taxpayer usually need more tax filing help to correct the mistakes made the first time.

Yet another easy way to get tax filing help is to use a tax preparation software. There are many good and easy to use tax software such as Tax Cut or Turbo Tax that will help taxpayers prepare tax returns in a short amount of time. These software can cost very little but if a taxpayer wants a software that comes with lots of worksheets, then it is more expensive. However, the most expensive the tax software, the easier to use.

In general, it is best to get the tax filing help you need before you file your tax return. You can avoid the headache of having to file an amended return by making sure that everything is reported and claimed correctly the first time. There are many organizations that offer tax filing help for free.

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