I'm going to add a little wisdom here based on my experience. I've been a tax preparer for 14 years, completed over 3500 returns, and taken more than 500 hours of training. I've had experience with various types of tax organizations. Deciding who to go to to prepare your taxes can be confusing. Let's change that! Here is an explanation of the differences of a CPA, tax preparer, and an EA -- and -- some information about how each of them work. I hope this will help you pick the one that best works for you! ~ An Enrolled Agent (EA) is a designation by the IRS that the individual has passed a knowledge exam on taxes that allows the EA to represent a taxpayer infront of the IRS. An Enrolled Agent may be a tax preparer or a CPA. Not all tax preparers or CPA's are Enrolled Agents. ~ A CPA is Certified Public Accountant. They received this designation by passing knowledge exams on numerous accounting areas. Many CPA's specialize in a specific area of accounting. If you go to a CPA make sure they specialize in taxes. Not all CPA's specialize in taxes or are Enrolled Agents. The CPA must be an Enrolled Agent to represent you infront of the IRS. ~ Tax preparers are trained to prepare taxes. Often they have a educational background or work in accounting but not necessarily. Their knowledge varies based on the number of years they have prepared taxes and educational courses they have taken. Tax preparers at H&R Block begin with a basic training course of 66 hours of class time plus additional hours for updates on new tax law changes and on-the-job training hours. Students of the basic training course must pass a final exam to qualify to work for H&R Block. Experienced H&R Block tax preparers are required to complete a minimum of 30 hours of training each year plus additional hours for updates on new tax law changes. Many tax preparers at H&R Block and smaller tax prep firms are Enrolled Agents. ~ H&R Block charges are determined by the forms used and what is filled in on the form. If you require H&R Block to do bookkeeping (you know that brown bag of receipts) they will charge an additional hourly fee. ~ Most CPA's charge on an hourly basis. From my personal experience the cost of going to a CPA is about 2X the cost of going to H&R Block. Some local firms are even less but may not have an EA or year-around office to help if there is a problem. ~ If you go to H&R Block you will sit with a tax preparer as they prepare your return. The preparer will ask lots of questions, answer questions, and make suggestions for future tax savings. Unless there is a complex tax issue that needs to be researched or missing information, the preparer will complete your return while you are there and you can take it with you when you go. ~ If you go to a CPA they may have you sit with them as they prepare and complete your return -or- they may just have you leave the tax information and call you to pick-up the return when it is completed. ~ Many CPA's hire tax preparers such as myself (often current or former H&R Block preparers) to complete the return. The CPA reviews the completed return and signs it as the preparer and presents it to the client. This is very common in our area especially with larger accounting firms. ~ Tax laws are complex and change each year. I've amended returns prepared by individuals, H&R Block, other tax prep firms, and CPA's. Anyone preparing your return can make a mistake. ~ If you prepare your own taxes on-line be sure to print a copy for your records. The on-line programs are great for simple returns (such as those with just W2's and interest). ~ If you want to purchase tax software Turbo Tax and Tax Cut are the most popular. Be sure to print a copy of your return for your records. The software is a great choice for a return that is not complex and if you are willing to take the time to research items that you are not sure of. ~ If you choose to go to H&R Block or a smaller tax firm call and request an appointment with an experienced preparer and let them know you would like a preparer that will spend time reviewing and explaining your return in detail. They will schedule you with a preparer that meets your needs if they know when you call for an appointment. ~ To find a good CPA or tax preparer ask friends and family for recommendations. Ask them why they like their preparer and see if it matches what your looking for. If you find a someone you like then call next year to schedule an appointment specifically with that person. As for the original poster ... from her explanation they have a rather simple return. If she felt confident to do her own return she could go online and do it. It sounds as though she wants to learn but would like some help this year so going to a professional might be a good idea. Since the return seems to be rather simple I think an experienced tax preparer would be less expensive than a CPA. I'd suggest calling for an appointment in advance and requesting that the appointment be scheduled with an experienced tax preparer that will be willing to answer lots of questions.

Just moving it back up a bit. Some who might find it useful may not have seen it earlier. That amount that a single person can earn without being liable to pay one cent of income tax claimed above is incorrect. The correct figure was $46,345.00. in 2006 ... if solely dividends on Canadian stocks, with no other income, no income tax is payable by a single taxpayer. Have yourselves a lovely late?-winter weekend, everyone. ole joyful

We have Vannie and Kelly beat.We will be giving the IRS $18,000.! See what I mean about almost enough to buy a new car? LOL Talk about Ouch! All because we were fortunate enough to inherit oil property from in-laws in 81 and were even more fortunate to be able to sell last year at a very good price.We have paid an average of $3000. every year since in taxes on the oil royalties on 2 producing wells,plus about $1200. a year in property taxes.I think it is a little unfair to have to pay 18% taxes on that one time windfall but that's the way it is.So much for being one of those "rich" Texas oil people! LOL

Like I said - rich folks. With only one kind of income. They own quite a few Canadian stocks. Suppose the stocks pay them an income of $46,000. Suppose, now that the prices of bank shares have gone down quite a lot recently, they have about $660,000. invested that are paying 7%, to produce $46,200. last year. [Caution: I would not want to see someone with a substantial amount invested have chosen to invest it all in one company - way too risky!] When the single person calculates his/her tax load ... it'll be zero. If the "taxpayer" has a low-income spouse with some tax credits to transfer ... or makes some political contributions ... or donates some to a registered charity (and the credit is at a high rate when one contributes over $200. per year) ... or pays upwards of 5% of net income in eligible medical/dental expenses ... the tax-free amount goes even higher. You may have heard me say in some of my posts that I don't like earning interest - the number of underlying invested dollars can't grow. And the only income that it produces ... is produced now ... and it's taxed now ... at top rate. If you have stocks of Canadian companies that pay dividends and have other kinds of income, the tax-free amount reduces rather rapidly ... but you'll pay tax on the dividend portion at a much lower rate than that on most other kinds of income. If this doesn't explain it adequately, ask and I'll try again. Perhaps if you check the link and read carefully, you'll find it explained a little differently and in a way that'll be clear to you, over there. ole joyful