As a 25-year financial advisor, I am obviously a big fan of tax preparation and planning to be a human process of actually a bigger project called financial planning.

Today’s technology allows us to handle many wonderful tasks that outside human professionalism is today. Today, many believe tax prep software and Internet services can provide a do-it-yourself approach to getting your taxes done in 15 minutes and getting a huge tax refund. Such nonsense talk! That’s like saying technology allows for major surgery to happen in the morning and then we can go back to work in the afternoon. Yes, today’s technology is wonderful, but it is indeed not that simple.

Financial Planning tasks, like finding  and recommendating ways to lower your tax bracket further cannot be microwaved into a two-minute one-page report. We wish it could! Just like President Donald Trump wants an IRS postcard return. We wish too, but we will not get there.

So when is it good to use tax software? Well, since this is like saying that you do not need a professional in your life, let’s look at some of the reasons why:

Simple Life No Tax Deductions: The IRS code has over 300 deductible areas. But many do not take advantage of even learning what they are so they do not itemize deductions. Maybe you do not have to. Maybe you have a simple life that you do not have medical expenses, state and local tax deductions, home mortgage and property taxes, gifts to charity or job expenses. Yes, these are just a few deductions! If the tax code does not apply to you then tax software should get the job done pretty quickly.

401(k) Contributions, But Don’t Have Any: Sometimes the tax software may ask questions that are written in an IRS professional manner. To you, it might be mumbo-jumbo. But guess what? You are dealing with an official government document so you better get the answers right. It is our experience, for example, that some of the software companies might include questions like 401(k) contributions, for example, that you should be prepared to answer 100 percent correctly–not for the IRS’s benefit–but for yours. Remember, contributions to a 401(k) are tax exempt and thus the more you put in–the more you save on taxes. So get ready to learn Taxes 301. No retirement contributions? Then software is for you.

You’re Not Self-Employed: Boy, oh boy, does it get a bit complex if you are. Not only does your income have to be looked at a bit closer, and now extra forms have to be filled. A good side note is that the extra forms allow for you to write off many of those business deductions that you should have. Do you even know what they are? These tax credits are a dollar-for-dollar deduction. And to know these in advance for proper tax planning. Well, of course the software does not tell you that, only a professional can assess you and make proper recommendations.

You Have No Questions: What is a K-1 form? How does one open a Roth IRA account at their local institution? Do you know how to maximize your 401(k) contributions? After all, all these tools will lower your tax bite even more! Tax software only does processing and does not offer advice and guidance. Processing presumes you know the answers.

Time Means Nothing To You: Well, the IRS says from a do-it-yourself approach, that it should take you 10 hours from gathering your materials to understanding and processing the forms. Tax software and your pre-IRS education, might chop three hours of that! So if it does take you seven hours, is that time well spent? How much do you get paid at work per hour? If you get paid, say $30 an hour, that’s $210! How much is a human tax professional? In 2017, the IRS says the average tax preparation bill was $275. Maybe it’s worth an extra $65 for human advice and guidance.

We believe today that financial software helps tremendously in finalizing one’s short- or long-term financial plan. But the one thing it does not do is maybe the very first most important tenet of better financial living: assessing your situation in the first place. You can use software to help solve the pieces to a solution, but it will not tell you what was the problem in the first place.

When it comes to taxes, you want to accomplish some basic things:
* Pay your correct fair share in taxes
* Receive a nice tax refund
* Get good suggestions for the following year

Tax software does not give you the answers to those questions. It presumes you have applied tips and strategies already and now it’s just processing time.

Now, as humans we’re vulnerable too! But with an academic background and hopefully prior experience, a human financial advisor, just like a practicing medical professional can tell you how to make your life better first.

So if you believe you have a simple life where you are single, no dependents, make less than $30,000 a year, then  tax preparation is simple cheap and probably best suited for software” preparation.

So are you really those 15 percent of Americans that don’t itemize because they simply don’t care or are you the 85 percent that care but do not understand.

Anthony Rivieccio is the founder and CEO of The Financial Advisors Group, celebrating its 20th year as a fee-only financial planning firm specializing in solving financial problems. Mr. Rivieccio, a recognized financial expert since 1986, has been featured by many national and local media including: Klipingers Personal Finance, The New York Post, News12 The Bronx, Bloomberg News Radio, BronxNet, the Norwood News, The West Side Manhattan Gazette, Labor Press Magazine, Financial Planning Magazine, WINS 1010 Radio, The Bronx News, and The Bronx Chronicle. Mr Rivieccio is also currently an Adjunct Professor of Business , Finance & Accounting for both,  City University of New York & Monroe College, a Private University.  For financial assistance or a FREE 2017 Income Tax Analysis. Anthony can be reached at  (347) 575-5045.