So why should I pay someone to do my taxes? Can’t I file for free?
Yes, you can. As long as your adjusted gross income (AGI) is $57,000 or less, you can e-file your federal income taxes for free. More information on how can be found here on the IRS website (which really is a pretty decent site).
If you don’t want the hassle of filling out the forms manually, many of the popular software packages take advantage of the free e-filing and offer the free use of their software, as long as your return is relatively simple. How simple varies, and that is how they suck you in to buy their add-on features. Is this wrong? I don’t think so…fair services should receive fair compensation. How much should you pay?
One site that I found with a quick Google search had a good review of the different tax services. Of course, your experience is going to vary, and I am quite certain that you know of somebody with a horror story about some or all of the companies. Just remember, it’s the horror stories that get remembered and spread, even if the good reviews far outnumber the bad ones.
What about state taxes, can they be filed for free? Yep, but, at least in Massachusetts, it might be a little more tedious. Details here.
The moral of the story? Don’t shell out more money than you need to. If you have questions, please feel free to contact me…I’m more than willing to chat and offer any assistance you might need for your taxes or small business.