Doing your taxes is one of those jobs that you intend to do early, but you still find yourself doing at the last minute. We’re asking whether the hassle of doing your taxes yourself is worth it, or if you should bite the bullet and get a pro to do them for you. Here’s everything you need to know!
Simple vs. complicated
It can save you lots of money doing your taxes yourself, but if you get things wrong on your form, you could end up getting hit with fines, or even audited. There are some situations when it’s totally fine to do your taxes on your own, but if you have a complicated circumstance, then you’re going to need help. That’s where a good accountant comes in, and we’re here to help you figure out if you need one.
Do it yourself
If your tax situation is simple then really you should do them yourself. If all you need to do is take some numbers from a sheet, then you’ll save yourself the expense of hiring an accountant. If you’re not confident of doing things totally on your own you can pick up some cheap software from between $20 to $50 that’ll get rid of your headache. In contrast, accountants can cost as much as $1,000 depending on your needs.
Time is at a premium
One time when you really should get a professional to do your taxes is if you just don’t have the time to do them yourself. On average it is estimated people spend 13 hours preparing their tax forms and if you don’t have that kind of time, then you need help. Even if your taxes are relatively simple, it’s better to pay someone else to take care of them rather than incur the cost of handing them over late, or incorrect. The price for accountants can begin at $176, which is much less than the fine that could be coming your way.
Your business is at risk
If you recently started a new business, then you’re going to want to hire an accountant. The tax form becomes way more complicated once you have to detail your business incomings and outgoings to so it’s best to leave this to a professional. You might not like to part with the cash when you could do the job yourself, but if you’re running your own company, do you have the time?
If you recently got married, or experienced a life-changing event like changing jobs, having a child, or graduating college, an accountant is going to be your friend. A tax professional will know all about the tax benefits open to you, helping to minimize your liability and keep your money in your pocket.
Basically, if you have the time and your taxes are relatively simple then it’s fine to do them yourself. If there are external considerations to be made, or your life is changing, it’s best to get a pro involved to make sure everything’s above board.