| Borrowing |
Ken Jennings' long reign as champ on the
TV quiz show "Jeopardy!" ended
when he could not identify the company with
the largest number of seasonal white-collar
workers (it was, of course, a well-known
tax preparation firm). Mr. Jennings says
he did not know the correct response because
he does his own taxes.
The main advantage gained by preparing your
tax returns is not from saving the preparation
fees, although this can be significant. Rather,
it is the deeper understanding you gain of
your personal financial situation and, in
particular, the impact of taxes on it.
Preparing your own tax returns
should be
a relatively straightforward
affair if:
- You are an employee rather than a business
owner.
- Your investments are basic financial instruments
like stocks, bonds, mutual funds, and bank
accounts, with nothing exotic.
- You do not engage in complicated real estate
transactions.
- You are an organized person who can keep
the required documents and receipts in good
order.
If your situation is simple,
as outlined
above, the instruction booklets
that come
with your tax returns (both federal
and state)
normally are more than adequate
guides. Nonetheless,
before making your first foray
into doing
it yourself, you should consider:
- Attending a course on tax preparation. See
what your local community college offers
in its evening adult education program.
- Getting a private tutorial from someone experienced
in tax preparation, preferably a professional
such as a CPA (Certified Public Accountant).
- Reading books on the subject.
Any student attending a college
offering
business courses should consider
taking one
in tax law. The information gained
therein
will prove invaluable. |
| To Learn More (click to visit) |
To advertise your web site here,
go to CliqueRouter Ads. |
Topic contents © Mark Kolakowski and CliqueFriends,
LLC, 2004 |
|
