Having your taxes professionally prepared can seem like an unnecessary expense, but in some cases, it can actually save you money. Whether you choose to do your own taxes or hire an accredited tax preparer depends largely on your individual circumstances.
When to Do Your Own Taxes
If you’ve been handling your own taxes for years and your financial situation hasn’t changed much recently, you can likely save money by continuing to prepare your taxes without professional help.
However, consider that tax preparation software is also available as an option. Many companies offer online software that calculates deductions and guides you through the filing process. They often provide customer service to address specific questions that may not fit typical taxpayer circumstances.
Even if you’re experienced in DIY tax filing, periodic consultations with an accredited tax preparer could be beneficial. Tax laws change annually, so meeting with a professional occasionally ensures you’re maximizing all available opportunities.
When to Hire an Accredited Tax Preparer
You Own Your Own Business
If you own your own business, it’s wise to consider hiring an accredited tax preparer rather than attempting to file your taxes independently. A professional can ensure you maximize deductions, potentially offsetting their fees with savings. Moreover, they can help prevent common errors that might trigger IRS audits.
You Are Self-Employed
Being self-employed warrants similar consideration. Even if you don’t think of yourself as a business owner, the IRS may view you differently, opening up numerous business-related deductions. A tax preparer specialized in such cases can identify all applicable deductions, optimizing your tax savings.
You Bought Property Last Year
If you purchased property recently, hiring a tax professional is crucial. They can navigate the complexities of property-related tax credits, ensuring you capitalize on all available benefits, which can vary annually.
You Had Children
Having dependents, such as children, significantly impacts your tax situation. A qualified tax preparer can leverage dependents to maximize your tax refund, acknowledging the expenses incurred throughout the year.
You Changed Jobs in the Last Year
Changing jobs within the past year affects your income and consequently alters your tax liabilities. Accredited tax preparers are adept at assessing these changes, determining how they influence your tax status accurately.