If your tax situation is at all complicated (to the point where filing form EZ is not an option), and/or if you would like to take advantage of new exemptions, deductions and/or credits to reduce your tax liability, you have probably considered seeking the help of a tax preparer. Here’s what you need to know about tax preparation services and professionals. You might even qualify to get help for free!

Where to find a tax preparer/accountant/CPA: Whether you use a reputable tax preparer or an accountant depends largely on your preferences for convenience, speed and personal service. Retail tax chains like H&R Block or Jackson Hewitt will give you convenience (drop-in service at many locations) and speed, but an independent qualified accountant will more likely give you more personalized service. Both will charge about the same for their services. If your tax needs are complex, you may want to see a CPA. It may cost you more, but a CPA will have more expertise when it comes to the tax code and may end up saving you a lot in taxes (and headaches). You can find a retail chain in your local yellow pages. Independent accountants and CPAs can be found the same way, but you are better off going by word of mouth. Be cautious, however: if you are going the route of an independent tax preparer, check out his or her qualifications and experience as well as the type of support that will be provided in the event you are later audited.

How much should you pay for tax preparation? Fees vary depending on the complexity of your situation, where you live, and the qualifications of your tax preparer. If your return is relatively uncomplicated, expect to pay between $125 and $200. If your return is more complicated (self-employed or landlord, for example), expect to plunk down between $200 and $450. If you’re expecting to claim the Earned Income Credit (EIC), expect to pay between $150 and $200 since the EIC form is more complicated.

How to get help for free: If your adjusted gross income is $52,000 or less, you may be eligible for Free File, a service offered by the IRS in partnership with Free File Alliance to offer free online tax preparation and online filing for those who qualify. This service also covers filing of Form 4686, Automatic Extension of Time to File. You will need to either check with the Alliance member preparing your tax return or your state’s tax office to find out if you can also prepare and file your state tax return along with your federal return.

Besides Free File, there are other free services out there to help low-to-moderate income taxpayers prepare their returns. The Volunteer Income Tax Assistance Program (VITA) provides free tax help to those who earn $39,000 or less per year. VITA assistance sites are usually located at community and neighborhood centers, libraries, schools, shopping centers, and other convenient locations. To find your local VITA site, call 1-800-829-1040.

If you are 60 or older, AARP offers a Tax-Aide counseling program, with over 9,000 sites nationwide. Trained and certified AARP counselors help elderly low-to-moderate income taxpayers prepare their returns for free. To find the nearest AARP Tax-Aide site, call 1-888-227-7669, or visit AARP’s Tax Aide website.

Military personnel and their families also get free tax help via the Armed Forces Tax Council (AFTC). Check with the VITA site at your installation or call 1-800-829-1040 for more help.

For more information about free help from the IRS, call 1-800-829-1040, or visit the IRS website.

To learn more about taxes and the IRS, see the following articles:

The Free Advice Guide for Filing Your 2006 Tax Return
Filing Your 2006 Tax Return: Bring on the Paperwork
When You Have to File Your Tax Return Late
When You Need to Pay Your Income Tax Late
Do I Have to File if I Live Outside the U.S.?
What Will It Cost Me to Get My Money Early?

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