Every year when income tax season rolls around, many people wonder where they should go to have their income taxes prepared. It pays to be an informed consumer, fully aware of your many income tax preparation options. Even if you’ve been using the same income tax preparer for many years, it may pay to weigh your options and do some comparison shopping.
Taxpayers in the Paducah, Kentucky area have many choices as to income tax preparers. There are basically three different categories of income tax preparers and income tax preparation services. Each option has both pros and cons that must be considered. Remember that the prices you will pay for income tax preparation can vary greatly even within the same category of income tax preparers. Some careful comparison shopping may provide you with the same quality tax preparation service at a more affordable price.
The first option, and category, is to use a nationwide income tax preparation chain. These nationwide income tax preparer chains with household names are usually a safe bet as to the quality of the income tax preparation. But this quality does come at a price.
Nationwide income tax preparation chains thrive on providing reliable service. They have a name and image to protect, and therefore strive very hard to be sure that the person preparing your income taxes is fully qualified. Income tax preparers at large nationwide income tax preparation chains must meet certain criteria including specialized training. They usually offer a guarantee of accuracy for your income tax returns and would assist you should you be audited. You may not be able to get this same type of guarantee at other types of income tax preparers.
But be aware of some of the pitfalls of using a nationwide income tax preparation chain’s services. Many people fall into the trap of getting loans and advances on their income tax refunds through the nationwide income tax preparation chains or a finance companies the chains partners with.
Do not allow yourself to be beguiled by the fast sell of the income tax preparer, or the temptation of quick money at hand, for this dubious service. These loans, or advances of your income tax refund, come at a hefty price. The interest rate on the loan or advance is often extremely high, much higher than the interest charged by most credit cards. This exorbitant interest rate is certainly far more than most banks would charge for a loan. You may also incur expensive fees if you do not make the payments in time as well as processing and other fees.
The only person that these loans benefit is the income tax preparation chain-not the taxpayer receiving the loan or advance. If you need a loan, go to your local bank.
While not advisable, even using a credit card could be preferable to one of these high interest loans or advances. charging an amount you can quickly pay off on a low interest credit card (10% or under, preferably) and paying at least two to three times the minimum monthly payment, would still be preferable to a 20% or more interest rate on a loan or advance from the income tax preparation chain.
Another thing that should be taken in to consideration with any income tax preparer is the cost of having the income tax return prepared. It is true that these charges are tax deductible, but only if you file using itemization instead of the standard deduction.
National tax preparation companies are often quite expensive. I have seen people pay $50.00-$100.00 or more using a national income tax chain than they would have paid using a good, experienced small tax service, accountant or individual income tax preparer. Remember that the fancy ads and plush offices of the nationwide income tax chains come at a price-out of your pocket.
It pays to shop around and compare prices for income tax preparation. Now, I’m not saying that cheaper is always better nor should you necessarily go with the cheapest income tax preparer you can find. If you call an income tax preparer and they don’t want to give you an estimate, which remember is just an estimate, you should probably go elsewhere.
Your second option is to use a local small income tax preparation business or individual income tax preparer. You may find the price of income tax preparation much cheaper through one of these types of preparers.
The experience and qualifications of these income tax services may vary greatly. You should, as with any type of tax preparer, use caution to find one that is professional and reputable. If you have any doubts about the income tax service or income tax preparer, you should choose a different preparer.
Having said this, there are many small income tax services and individual income tax preparers who do a quality, accurate income tax preparation job at a very reasonable price. Don’t expect frills and big fancy offices, but do expect professionalism and accuracy.
Your third option is to use an accountant, accounting or bookkeeping service, financial planner or financial planning service.
It should be noted that not all financial planners or financial planning services prepare income tax returns. Many of them focus solely on investments and financial planning. The professionals I’ve listed below do prepare income taxes, but others may not.
I’m going to use the word financial professional to describe these types of preparers. Do remember that there are many good accountants who are not certified, so don’t limit your search to just CPA’s.
A financial professional can be a good option for many reasons. They can offer services a nationwide tax chain, small tax office or individual tax preparer can’t. They may be able to offer specific tax advice, financial advice, investment advice and advice for retirement planning.
You should find out the exact charges beforehand and realize that there may be fees for the extra services. If you have a business, a financial professional is almost always your best bet. They can provide specialized income tax and financial advice as well as bookkeeping services year round.
A word of caution as to financial professionals. It should be remembered that many of them earn a commission when they sell you a stock, mutual fund, annuity, etc… So be very cautious about taking their advice. You need to research for yourself what they are advising you to invest in.
Often times they recommend investments that earn themselves a commission or fee while the investment charges you more in fees and percentages than other similar investments that don’t pay a fee, or as hefty of one, to a financial professional.
No matter whom you choose or what type of income tax preparer you choose, be sure you are comfortable with the actual person who will be doing your income taxes. Be sure that the income tax preparer takes their time with you. They should answer all your questions thoroughly and to your satisfaction. There should not be any pressure or hard selling for extra services.
If you have any doubts as to their competency or professionalism of your income tax preparer, look elsewhere. Just because you are accustomed to using a certain type of income tax preparer, doesn’t mean it’s the best or most cost effective way to have your income taxes prepared. Again, it would be wise to compare your choices to make the best decision for your personal income tax needs.
Here are some of the listings in the Paducah, Kentucky area for income tax preparers. I do not endorse any one of these personally, they are simply here as a local listing. The same information may be found in your local yellow pages. You can also find individual tax preparers in your local newspaper ads, but again, use the same caution you would in selecting any tax preparer.
Nationwide Chain Income Tax Preparation Services
H&R Block Tax Service
www.hrblock.com
locations in Paducah, Kentucky:
H&R Block
3216 Irvin Cobb Drive
Paducah, KY 42003
(270) 442-4056
H&R Block
2617 Wayne Sullivan Drive
Paducah, KY 42003
(270) 442-6048
Jackson Hewitt Tax Service
www.jacksonhewitt.com
locations in Paducah, Kentucky:
Jackson Hewitt
806 Joe Clifton Drive
Paducah, KY 42003
(270) 575-0807
Jackson Hewitt
3220 Irving Cobb Drive (Inside Wal-Mart)
Paducah, KY 42003
(270) 575-0049
Jackson Hewitt
5130 Hinkleville Road (Inside Wal-Mart)
Paducah, KY, 42003
(270) 575-9040
Local Paducah Small Tax Services & Individual Preparers
Carrol Neel
1733 Broadway
Paducah, KY 42003
(270) 443-5110
Egner’s Tax Service
3933 Clarks River Road
Paducah, KY 42003
(270) 442-0630
Thomas G. Smith
333 Broadway
Paducah, KY 42003
(270) 442-9630
Super Tax
3107Jefferson
Paducah, KY 42003
(270) 444-9007 or (270) 443-0960
www.supertax.biz
Dean Williams Tax Service
145 N. Friendship Rd
Paducah, KY 42003
(270) 554-9660
Local Paducah Financial Professionals, Accountants & CPA’s
Affiliated Financial Group
1 Executive Blvd
Paducah, KY 42003
(270) 443-5744
Chambers & Associates CPA, PLLA
1820 Broadway
Paducah, KY 42003
(270) 443-7073
www.chamberscpa.com
Clayton, Byrd & Meeks Certified Public Accountants
720 Broadway
Paducah, KY 42003
(270) 443-8763
Hawkins & Company, PSC, CPA
2116 Broadway
Paducah, KY 4300
(270) 443-4500
Jeff Ihrig & Co, CPAS
100 Fountain Ave
Paducah, KY 42003
(270) 443-2880
www.cpapaducah.com
M Dean Owen, CPA
5978 Old US Highway 45
Paducah, KY 42003
(270) 575-3344
Linda Miller, CPA, PSA
215 Nahm St.
Paducah, KY 42003
(270) 575-3444
Peck & Milford, CPA
2320 Broadway
Paducah, KY 42003
(270) 442-7386
David K. Sanders, CPA, PLLC
3038 Lone Oak Road
Paducah, KY 42003
(270) 554-1487
Jeffery L. Walker, CPA
60 Lakeview Dr
Paducah, KY 42003
(270) 554-9190
