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You don’t want to make a mistake around such an important job.
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Now that the 2023 tax season is officially underway, you may be ready to start working on your tax return. The sooner you get your taxes done, the sooner you can expect your refund (if you’re due one) to hit your bank account.
Of course, today’s tax-filing software makes it possible for plenty of people to file their taxes themselves. But if your tax situation is at all complicated — say, you own a small business or are self-employed — then you may want to hire a professional to file your return for you.
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A tax preparer might make the process of filing taxes less stressful. And also, they might know about certain tax laws that you don’t, resulting in a higher refund than you would’ve gotten on your own.
But if you’re going to hire a tax preparer, it’s important to find the right one. And sometimes, that means knowing who not to hire. Mark Steber, Chief Tax Information Officer at Jackson Hewitt, says if you meet with a new tax preparer and experience any of these situations, it’s a sign to run the other way.
1. Your tax preparer guarantees you a refund
Steber says to be on alert any time a tax preparer guarantees that you’ll get a refund. There’s no way, he explains, for a tax preparer to know if you’re due a refund until they actually look at your tax documents and assess your situation.
2. Your tax preparer doesn’t ask questions about your tax situation when giving you an estimate
It’s natural to want to know how much money you can expect to shell out for a tax preparer to file your return. But if you’re given an estimate without being asked about your personal tax situation, it’s a bad sign.
The cost of filing a tax return should hinge on factors like whether you run a business or are simply a salaried employee. If your tax preparer doesn’t ask those questions before giving you a number, the estimate you get may not be accurate.
3. Your tax preparer won’t give you an estimate of your costs at all
Steber says that any tax preparer who can’t give you an estimate of cost is someone to steer clear of. First of all, if you come in with your tax return from the previous year and your situation hasn’t changed, a tax preparer should be able to use that information as a basis for your estimate. And even if not, they should still be able to give you a range.
“Pricing should be an easy discussion,” Steber insists. If you don’t get a number, take your business elsewhere. And also, Steber warns, “Beware the person who waits for the refund amount before giving a price.”
4. Your tax preparer won’t sign your tax return
If your tax preparer won’t sign your tax return after completing it, that’s a really bad sign. Tax preparers actually have to sign a tax return if they’re getting paid to prepare it, says Steber. So ask upfront whether yours is willing to put their name on that document. And if not, run.
“We see a lot of these ghost preparers,” explains Steber. “They get aggressive and then they don’t want their name on your tax return.”
Remember, if a tax preparer claims deductions they shouldn’t, ultimately, you’re the only who will feel the backlash if your return gets audited. So don’t be willing to work with someone who will, as Steber puts it, leave you hanging with all the risk.
HIring a tax preparer could make tackling your return much easier. But steer clear of anyone who falls into the above categories.
Our picks for best tax software
Our independent analysts pored over the perks and user reviews for the most popular tax provider services to land on the best-in-class picks to file your taxes. Get started by reviewing our list of the best tax software.
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