Tax software has come a long way in less than two decades of existence. Most of the time, people who use tax software to do their returns won’t have any serious mistakes and will be able to handle their entire tax situation without help.
BUT, even the best tax software has many limitations. TurboTax, by far the most popular personal tax software and widely recognized as the most capable for non-professional users, has posted its annual list of limitations and unsupported tax situations. The list includes nearly 100 situations. Less capable tax software packages would probably have a much longer list.
Now, most of the unsupported situations are extremely rare situations. But some situations do affect significant numbers of people…and they can be extremely costly.
Had a foreclosure or other debt cancellation? In nearly all cases, your tax software can’t handle it. Are you self-employed with a net loss for the year? Did you have mortgages in excess of $1 million? Have a vehicle w/ varying business use over the years? Did you work abroad? Or just receive a large state tax refund? These situations and many more frequently trip up taxpayers.
And how much could it cost you if you don’t handle one of these situations correctly? Well, several of the examples above could easily cost tens of thousands of dollars if not handled correctly.
So what do you do if you’re in one of these situations…or you think you might be affected but aren’t sure? Well, traditionally you’ve had only two options: Roll the dice and hope that taking your best guess with the tax software isn’t going to turn out to be a costly mistake…or take your whole return into a professional even though you could do the other 95% all by yourself.
It’s situations like these that are the reason Class 5 offers tax reviews for people who do their own taxes. Go ahead and do your own return. If you get stuck or have questions, just hand it off to us and we’ll complete the hard part. Save money without sacrificing peace of mind. In these economic times, you can’t afford costly tax mistakes, and that’s why Class 5 is here.