Should I Hire A Tax Preparer or Should I Do My Own Taxes?

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This is such a great question that so many people have asked me recently. First, ask yourself if you have the time and patience to do your own taxes. If you don’t have the time or knowledge required, hire a professional.

Here are the top reasons to hire a ta professional: 

  • You’re running out of time.
  • It’s overwhelming to think about preparing your taxes by yourself
  • Your financial activities have tax implications that you do not understand.
  • Your tax situation is complicated.
  • People who are self-employed or business owners
    • This may include business owners, consultants, freelancers, or salaried people have a side-hustle that may have to pay additional self-employment taxes. Self-employed individuals can benefit from many deductions and write-offs. Do not attempt to do this on your own; call a tax professional.
  • You are purchasing or selling a home
    • Homeownership may bring with it a number of tax-related issues like capital gains and losses if you sell your home, as well as deductions related to some expenses. You should consult an experienced tax preparer who is familiar with the tax effects of real estate transactions if you’re nervous about this tax situation.
  • If you are preparing to sell any large assets, such as stocks or businesses holdings
    • Securities and bond transactions, as well as the sale and exchange of stocks and other investments, are classified as capital asset transactions. The tax rate on capital transactions is lower than your ordinary income, but managing capital transactions can be difficult. You should hire a tax professional to prepare your tax return if you need to report capital asset transactions.
  • You provide someone else with financial support
    • If you support someone financially, you  can likely claim that person counts as a dependent on your taxes. Consult a professional tax preparer to be sure.

Conclusion

The use of tax-preparation software has helped people prepare their taxes themselves, though in some cases it is still advisable to enlist a tax professional. Having to file taxes on your own can take an inordinate amount of time. Based on IRS estimates, individuals spent an average of 24.2 hours preparing their tax returns in 2007. Having a tax pro on your side will save you time and headaches in addition to saving you on taxes. If you’re unsure about your tax situation, tax laws, and how to deal with them, hire a professional!

Sources: www.mcmullen1.combusinessinsider.com  moneyunder30.com,  goodfinancialcents.com

 

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