Prepare for Taxing Decision

Then interview your potential tax preparer. If you have a small business, make sure the CPA has experience with your issues. If you've exercised incentive stock options this year, be sure to discuss that during your interview process.

Keep in mind, just because a person is a CPA does not mean he knows taxes. Many CPAs are fabulous full-time auditors and have never even picked up a tax return. So be sure to ask.

Most importantly, you have to be comfortable with this person. There is a huge trust factor here because, in some situations, your preparer will know more about your financial situation than maybe even your spouse.

Choosing a small firm or a large one will depend on your needs. With a one-person shop, you're relying on an individual to know all the answers. A larger firm has many more resources available for your complicated issues.

Of course, the larger the firm, the larger the bill. A small shop will generally charge around $500 to start, says Fooden.

Most firms charge either by the hour or by the schedule. So if the firm charges hourly and you bring in a shoebox full of tax documents, be prepared for a hefty fee. If the firm charges by the schedule, then each form has a price tag. For instance, preparing just a Form 1040 might cost, say, $100 and each additional schedule will be another $75. So if you have Schedule A - Itemized Deductions and Schedule D - Capital Gains and Losses, too, tack on another $150.

Just be open about your situation to ensure an accurate quote.

So make a decision -- and do it soon. You can't expect a pro to get your return done if you show up on April 14. And if you decide to prepare it yourself, you know that your child's going to shove a banana in your disk drive the day you decide to work on it.

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