RALEIGH, N.C. – It may be a while until you see your accountant friends, as tax season is officially underway.

What You Need To Know

  • The deadline for individuals to file an income tax return is April 18

  • The IRS expects more than 168 million federal returns to be filed this season

  • The Better Business Bureau shares insight on the different kinds of tax preparers and the red flags for scammers this time of year

  • You can find free resources to file income tax forms on the IRS website here

Americans have until April 18 to file their income tax forms. Before jumping into all the options to choose a tax preparer, let’s talk about free resources you can take advantage of.

People who make an annual adjusted gross income of $73,000 or less qualify for the IRS Free File program, which offers free, guided tax preparation online.

The IRS also offers Fillable Forms, where people can file electronic federal tax forms for free. It’s basically a document that people can fill out and do themselves.

Related: New Year and new income tax cut for N.C. residents

However, many people opt to phone a friend and enlist the help of tax preparers.

Meredith Radford with the Better Business Bureau of Eastern North Carolina says people have a handful of options, depending on the individual’s unique situation.

1. Enrolled agent:

“There's the enrolled agent that's a tax preparer that's been approved by the IRS to represent taxpayers," Radford said. “They have to have prior qualifying employment with the IRS or pass an exam that's pretty intensive and have a background check. They are a good option if you have a more complex tax situation.”

2. Certified public accountant:

“They have a college degree, their license in the state to work professionally, and those can be a good choice, but they may charge more than a basic tax preparer,” Radford said.

3. Tax attorneys:

“Those are often for even more complicated situations, and they're also the most expensive,” Radford said.

4. Non-credentialed tax preparers:

“The last option is non-credentialed tax preparers,” Radford said. “Those can be the most cost effective, but you have to look out for people that may not have a lot of experience or training.”

While on the hunt for the right fit to file your returns, Radford says people need to be on the lookout for the red flags of scammers who try to steal people’s personal information. 

“You have to kind of be careful and do research, do your homework because not everyone is created equal when it comes to those tax preparers,” Radford said. “You have to look out for spectacular promises. So, if they're telling you that they can get you huge refund refunds better than the competition, that's a red flag.”

“Another thing you want to look out for is if something just doesn't add up, like if they can't verify their credentials, if they have bad reviews online or from previous clients, those are things you want to avoid because in the end, you know, you're liable for your taxes and you want to make sure that everything is good to go and done the right way.”

While the deadline is still months away, many experts recommend people file as soon as possible, that way you get a faster refund (if you qualify) and you reduce the odds of a scammer attempting to claim a refund in your name through identity theft.

The IRS also warns that tax refunds may be “somewhat lower” than last year’s payment, as pandemic-era tax relief, like enhancements to the child tax credit and income tax credit, are no longer available.

“Tax time can be overwhelming for everyone, especially if you've had major life changes or you just don't know that much about taxes …” Radford said. “The first thing you want to do is understand the different types of tax preparers, their qualifications and which type works best for your individual situation because everybody's different.”