One of the most asked questions each year among working individuals is, “Should I do my own taxes or should I hire a professional?” With the ability to go online and/or use software that is basically set up as a financial questionnaire, why wouldn’t individuals just go that route from the beginning?
Well, everyone’s situation is different so what works for one person may not work for another. For example, if your income and filing status remains the same year in and year out, it may be a good idea to handle your own taxes. However, if your situation is a little bit more complex, then someone like Dave Burton, CPA may be of assistance to you. This is especially true if you happen to own real estate properties and/or any other investments.
Things to Think About Before Filing for Yourself
The first thing that should come to your mind before you decide to tackle your own taxes is whether or not you are good with numbers. Even if you are, there are many tax laws that you may need to be familiar with in order to do them correctly. Also, if you are not familiar with them then you may be costing yourself some important deductions or you may be missing a certain form that you may not have known about.
Filing Taxes Yourself
If you do decide to file your own taxes you will have a few options. Two of them are filing by paper or using software. When filing by paper you can obtain the proper forms by visiting the IRS website. The great thing about their website is that they give you an option to file your taxes for free by providing many types of tools if you choose to file on your computer. You can still access the printable forms there also if you prefer to do them that way. If software is more your style, there are plenty of them to choose from. Some of the most popular ones are Turbo Tax, TaxAct, and H&R Block. They all have their advantages and disadvantages so be sure to do a little research to decide which one may be best for you.
Hiring a Professional to Do Your Taxes Instead
Hiring a professional to do your taxes can really help certain individuals out a lot. Looking around for all the documents and receipts you need is hard enough let alone having to make sense of it all. If you have a small business, you bring in a substantial amount of money ($70,000 or more), and/or make a lot of donations to charities each year a tax professional would be the best route for you to take.
Having a tax professional allows you to relax a little more and they are also able to give you tax advice in case you may have any questions. There may have been some items you could have used to your advantage but you never thought twice about it. They are well versed when it comes to tax laws and the margin for error for your taxes are minimized. Whether you choose to file your taxes yourself or hire a professional for added security, please be sure to keep all of these different circumstances in mind. It’s better to be safe when it comes to your personal finances than to be sorry.