Should you do your own taxes or hire a professional?
Here are some things to consider when deciding between doing your own taxes and hiring a professional.
- Cost – We are all about saving money anywhere possible but keep in mind that the cheapest option is not always the best option. You may pay a lower amount for a tax prep software than you would pay to an accountant but the accountant could have possibly saved you much more on your taxes. Don’t step over dollars to pick up pennies. Do your research and weigh both options. Ultimately, the cost is not only referring to the amount of money you pay.
- Time – Figure out if you have the time that it takes to properly file your taxes and make sure they are done right so that it doesn’t cost you even more time in the future. There is a reason that a CPA has to go through hours and hours of courses before they get their license. Assuming that you can go online and read up on the tax codes and be an expert overnight could get you into trouble. You have to be willing and able to give it the time that is required so that you protect yourself and don’t overpay.
- Knowledge/Ability – Many of us like DIY projects and learning new things but taxes may be the one to leave to the pros. We all could attempt open heart surgery but we leave that to doctors because we know the consequences are severe and most of us do not know anything about heart surgery. If you have ever had someone from another industry talk as though they are an expert in your industry then you already know the feeling. Having said that, there are plenty of basic cases where it can make sense to use a tax prep service to file your own taxes and you can still pick up the phone and call a professional if you have questions. The most important thing is thinking about the things listed above and weighing your options to know the risk/reward and return on investment.
The most recent changes to the tax code with the Tax Cuts and Jobs Act could make taking the standard deduction a better option than the itemized deduction for taxpayers since the standard deduction nearly doubled.
Talking to a professional before choosing could make a big difference.
Tax Preparation Software
Hiring a Professional
- Make sure it is done right
- Keep more of your own money
- Keep yourself out of trouble
- Save yourself valuable time
Things you can do when deciding who to hire
- Read reviews
- Ask for referrals
- Interview a few candidates
NEED A RECOMMENDATION?
We work with the best tax pros to make sure that we have good referral options for our clients. We only work with those who are highly recommended to us and each one has been vetted by our team to make sure they are a good fit for our clients. Email us at [email protected] if you would like a referral.