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What's best: tax software or a tax pro?
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The first three months of the year mean many things to many people. Snow. Super Bowl. Groundhog Day. Valentine's Day. President's Day weekend. Mardi Gras. Lent. And the promise of pleasant spring to come.

So much for the happy associations. On a less enthralling note, it's also tax filing season. For many, that also raises the question: Should I hand off my taxes to a professional, or is a tax software program good enough?

Its certainly something of a split decision, historically speaking. As of March 2014, the IRS reported that some 27 million taxpayers using a variety of software products had prepared and electronically filed their taxes out of more than 130 million returns filed overall.

But a new year has brought a sweeping amount of change. That makes the decision of how and who should prepare your taxes all the more significant.

A question of complexity

As a general rule, if your tax circumstances are fairly simple and straightforward, then a software program for your personal computer can be perfectly adequate.

What that means can vary. Generally speaking, if the details of your taxes are reasonably basic one employer, little if any investment activity, a modest amount of deductible expenses tax software can likely meet your needs.

It always comes down to how complicated your tax situation is, said Suzanne Luttman, a professor of accounting at Santa Clara University. For many taxpayers, their situation isnt really that complicated. And, if thats the case, software packages can do an excellent job.

Of the 146 million taxpayers in this country, 60 million file a one- or two-page return, added Bob Meighan, vice president of TurboTax. That large group doesnt need to go to a tax professional.

One obvious appeal of tax preparation software is price. For instance, TurboTaxs most basic CD/download package costs $19.99. If that price seems steep, taxpayers also have the option of preparing and electronically filing federal tax returns online free of charge one place to do that is Free File at IRS.gov. This option, designed for the most basic of returns, begins at the IRS site, then refers you to any number of free filing programs located elsewhere.

By contrast, using a human being comes with fees, many of which are substantially higher than most software packages. According to a recent survey by The National Society of Accountants, the average cost of professional tax preparation for tax year 2013 was $261 (this figure included preparation of a federal and state return as well as a Schedule A detailing itemized deductions). Without any schedules, the average dropped to $152.

The more involved the tax situation, the higher the cost. For instance, returns with a Schedule C outlining profit and loss from a business checked in at an average of $218. Additionally, tax prep for partnerships ($590) and various types of corporations (as high as $806) were also substantially more expensive.

Meighan from TurboTax allowed that more complicated tax situations probably warranted working with a pro.

If you have a complex return, such as income earned in multiple states, they serve a valuable role, he said. If its a question of leeway should income be claimed in this state or that state they serve a strategic value.

The ACA effect

Tax year 2014 has injected a new element into the software/tax pro question: the impact of the Affordable Health Care Act. And, for some in the tax preparation community, the ACA is a bona fide game changer.

The ACA leaves many taxpayers with a lot of new issues to deal with, said Cindy Hockenberry, tax knowledge center manager at the National Association of Tax Professionals. If taxpayers have ever considered switching from software to a tax professional, this would be the year to do it.

For many taxpayers, the effect of the ACA is happily moot. Those are the fortunate ones who were covered by an employee-based policy, Medicaid or Medicare for the entire year. If thats you, all you need to do is report that on your return.

If youre covered by your employers health plan or there werent any other major sorts of changes in your coverage, then it can be perfectly fine to use tax software, said Hockenberry.

If you didnt have any type of health insurance for any part of 2014, youre going to have to complete and file IRS Form 8965. This determines whether you can claim an exemption from the insurance requirement and, failing that, the need to calculate penalties for the months you didnt have any coverage.

The ACA has so many complexities, you may not be sure how it affects you, said Hockenberry. Youre going to want somebody to explain all that to you.

The issue of ACAs effect on tax returns has been overstated, Meighan countered.

Ninety percent of Americans had insurance through their employers, he said. For those who didnt, the questions are built into the software. It lets you figure out any exemptions and penalties.

Other considerations

There are other issues to consider when choosing between tax software and a live preparer. Although tax software is geared to asking you a series of questions and checking the accuracy of responses, skeptics argue the system isnt fail safe.

Programs only work well if the information youre putting into them is accurate, said Luttman. You have to work very slowly and carefully.

Yet another question to take into account is the sheer hassle of preparing your tax return.

New clients most often come to me because their tax lives are getting more complicated, because they are encountering a tax issue they've never seen before, or because they've decided that it's worth paying a tax pro who knows what he's doing to relieve them from the stress of preparing their own returns, said Joseph Anthony, a Portland, Oregon, enrolled agent who, in addition to preparing returns, may represent taxpayers in matters with the IRS.

One final issue is the ever-dreaded IRS audit.

TurboTax offers users free audit guidance from a trained tax professional to help them sort through any IRS notices and address all audit-related questions and issues.

Another software package TaxSlayer also offers audit assistance for buyers of their "premium" edition.

That may be sufficient comfort for some. But, as Hockenberry quipped: The TurboTax box isnt going to go to an audit with you.
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Record April boosts Savannah's container trade at port
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The Port of Savannah moved 356,700 20-foot equivalent container units in April, an increase of 7.1 percent. - photo by Provided

The Georgia Ports Authority's busiest April ever pushed its fiscal year-to-date totals to more than 3.4 million 20-foot equivalent container units (TEUs), an increase of 8.8 percent, or 280,000 TEUs, compared to the first 10 months of fiscal 2017.

"We're on track to move more than 300,000 TEUs in every month of the fiscal year, which will be a first for the authority," said GPA Executive Director Griff Lynch. "We're also anticipating this to be the first fiscal year for the Port of Savannah to handle more than 4 million TEUs."

April volumes reached 356,700 20-foot equivalent container units, up 7.1 percent or 23,700 units. As the fastest growing containerport in the nation, the Port of Savannah has achieved a compound annual growth rate of more than 5 percent a year over the past decade.

"As reported in the recent economic impact study by UGA's Terry College of Business, trade through Georgia's deepwater ports translates into jobs, higher incomes and greater productivity," said GPA Board Chairman Jimmy Allgood. "In every region of Georgia, employers rely on the ports of Savannah and Brunswick to help them become more competitive on the global stage."

To strengthen the Port of Savannah's ability to support the state's future economic growth, the GPA Board approved $66 million in terminal upgrades, including $24 million for the purchase of 10 additional rubber-tired gantry cranes.  

"The authority is committed to building additional capacity ahead of demand to ensure the Port of Savannah remains a trusted link in the supply chain serving Georgia and the Southeast," Lynch said.

The crane purchase will bring the fleet at Garden City Terminal to 156 RTGs. The new cranes will support three new container rows, which the board approved in March. The additional container rows will increase annual capacity at the Port of Savannah by 150,000 TEUs.

The RTGs will work over stacks that are five containers high and six deep, with a truck lane running alongside the stacks. Capable of running on electricity, the cranes will have a lift capacity of 50 metric tons.

The cranes will arrive in two batches of five in the first and second quarters of calendar year 2019.

 Also at Monday's meeting, the GPA Board elected its officers, with Jimmy Allgood as chairman, Will McKnight taking the position of vice chairman and Joel Wooten elected as the next secretary/treasurer.

For more information, visit gaports.com, or contact GPA Senior Director of Corporate Communications Robert Morris at (912) 964-3855 or rmorris@gaports.com.

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