Benefits of doing your own taxes
Posted: 03.01.2011 at 11:30 AM
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COLORADO SPRINGS, COLO. -- "Tax Day" is less than seven weeks away, and if you are trying to decide whether to pay someone to do your taxes or do them yourself, time is running out.

Money Coach Bill Stanley was on FOX21 Morning News to explain why he thinks it is better for taxpayers to do the work themselves.

"I am frugal," says Stanley. "Others may choose to call it cheap, but I hate paying someone to do something I can do myself."

Stanley also says he has a growing distrust of tax preparers. 

"Most are really nice people, but they get caught up in the time pressures of preparing everyone's taxes at once", he says.  "Corners are cut and things are not thought through properly."

His advice is if you are going to pay someone to prepare your taxes, he or she should sit down with you and explain the tax return, and the preparer should provide tax-planning ideas for future years.

"The best reason to prepare your own taxes is that it helps you understand how the tax system works," says Stanley.

Here are some things to think about when it comes to tax preparation:
* The key is gathering and organizing the right documents. (This is 90% of the work)

* If you are worried you may miss some deductions, use a program like TurboTax.  It covers deductions through its endless questions.

* Last year's tax return, if it was prepared correctly, is the best guide to this year's return.  All last year's boxes must be filled or the reason must be clear to you why they are blank.  Then ask yourself what was different this year.

* If you have a difficult tax issue, do the rest of your taxes yourself and seek help on just the problem area.

* Get a "tax buddy" to review your taxes.  Could be a spouse or friend.

Contact Bill  - MoneyCoachBill@aol.com