Use Tax Software? Look out for hidden costs
As the tax deadline approaches (April 17th this year) many people use tax preparation software like TurboTax, Tax Act, H&R Block. This year some customers are taking to forums and consumer review websites to complain of fee increases, hidden costs for certain features, and surprise fees for refund processing. MarketWatch has compiled a list but here a few takeaways we think are important:
1) Pay close attention to what you agree to. Some software makes it very easy to click “yes” and agree, for example, to pay for their service by taking the money out of your return…for an extra fee of course. Slow down, read carefully, and make sure you understand your options. The big blue “yes” button might not be the right choice all the time.
2) Remember that you can deduct tax preparation and filing fees if you itemize so keep track of what you spend on these services. If you itemize (rather than take the standard deductions) you’ll want this information later.
3) Consider paying a pro. If you find yourself adding on expensive services like “audit defense” it may be a better deal to work with a tax preparer than use the DIY software. Shop around and compare prices to see