South Carolina Tax Attorney

    With the proliferation of tax software for the individual such as TaxCut and TurboTax, many people think they can file their own tax returns and bypass having a professional such as a CPA prepare their income taxes.  For some people, this is okay, but for others this is a major mistake.  The tax laws are complex and they are continually changing.  For example, the Alternative Minimum Tax patch that was recently signed into law that we discussed. 

    There are some groups of people that can safely file their income taxes using the free online software or by purchasing one of the products mentioned above.  This type of taxpayer is one who is an employee (meaning they receive a W-2 each year that lists their wages) and they have minimal deductions and are likely to just take the standard deduction. 

    People that should avoid preparing their own tax returns are those who are business owners (whether you are a sole proprietor or own a C-Corporation), if you have investment income, capital gains and losses, etc.  These taxpayers should definitely seek the counsel of a tax professional to prepare their income tax returns.  Not only from a liability standpoint and knowing that someone who does taxes for a living has prepared your return, but because they know more about the tax code and can save you a lot of money like taking advantage of your home office deduction, medical expenses, etc. 

     Unless your tax returns are extremely basic and you feel comfortable doing your own returns, I would recommend spending a hundred bucks or so and having a professional prepare your returns to make sure you take advantage of everything the Tax Code provides for your specific situation and to give you piece of mind.