Tax Preparation

MYTHS

All Tax Preparation Software is the Same

INCORRECT

Although it is true there are standards and certifications required for all Tax Preparation Software there’s whopping differences between the various Tax Preparation Software on the market today.

PROFESSIONAL VS DO-IT-YOURSELF SOFTWARE

The first distinction is that the Software designed for Self- preparation such as TaxAct, TurboTax, H&R Block, TaxSlayer, Etc is designed for novice users.   Meaning that the software is designed as a Questioner which asks questions based on your responses.   And if you answer all the questions completely and accurately they should lead you to a properly completed Tax Return.

Professional Tax Preparation Software is very different.   It first off requires a much more knowledgeable user.   Secondly, it is much more flexible offering options that the Do-It-Yourself Software just doesn’t have.   Pro Tax Software isn’t something you can buy to Self-Preparer your own Tax Return, but it is something you should require a Tax Preparer to have should you decide to hire them for Tax Preparation Services.

Do-It-Yourself Software can boldly claim that their Software is just as accurate as Professional Tax Preparation Software, but there’s a catch to those claims.   No matter which software you choose, it’s only accurate if you use is correctly.   These bold claims of guaranteed results don’t cover user errors.   And you can easily make mistakes that neither the software nor the IRS filters catch until after your Tax Return has been filed and accepted.

ACCURACY HINGES ON ACCURATE USE

This is the number one biggest mistake made in the Tax Preparation Industry and it’s something most people just do not understand.   No matter what Software you select.   It doesn’t matter if it’s professional or do-it-yourself, it doesn’t matter if you buy it at a store or use an Online Software.

IT JUST DOESN’T MATTER

No matter what software you buy, it ONLY works accurately if you use it correctly.

If you hire someone to prepare a Tax Return for you, they will only produce accurate results if they truly know how to use their Tax Preparation Software.

HAVING SAID THAT

There are vast differences between the various software available on the market.   Some are easy to use than others.   Some offer more options than others.   You may really like a certain Tax Prep Software whereby someone else many really dislike it.

I’ve actively used two separate Tax Preparation Software Packages and although they each had benefits I liked, I am not 100% happy with either.   The one I am now using is better than the one I used in the past.   My current software, in my opinion, is more accurate than my previous software, but they both produce accurate results.

I have also tested three other Tax Preparation Software Packages which all have pros and cons.   I may, at some point choose to change, but transitioning from one Tax Prep Software to another is a royal pain as in lots of hard work.   And in the final analysis,

TAX PREP SOFTWARE IS ONLY AS GOOD AS THE PERSON USING IT