Everyone has different strengths, and for some they do not include organizing a years worth of finances, generating accurate calculations, and meeting a firm deadline. There are several factors that can help an individual decide if hiring a tax professional is necessary. Tax laws are constantly changing. For an individual that has complicated assets, many different jobs, and/ or additional extenuating circumstances, hiring a tax professional can help in minimizing one’s risk of filing inaccurate information and being hit with unnecessary penalties. On the other hand, an individual that has one or two jobs, relatively straightforward assets, and a basic understanding of finance, preparing and filing his or her own taxes should be reasonably simple. There are several benefits and drawbacks to either choice. Making sure to consider your personal tax needs and limitations can help you reach your decision.
Self Prepare
Any person that has a knack for numbers, a general understanding of tax law, a tax situation that is unchanged (i.e. the same job, no dependents, not married, no new investments…etc.) and has the time to allocate to prepare taxes can likely prepare and file his or her tax returns without complication. The IRS even has a free e-filing option on their website for taxpayers with simple returns to conveniently file their tax returns. Additionally, for those that may have slightly more complicated situations, there are a number of different software programs available to assist an individual that still wants to prepare and file their tax returns themselves. If you feel very strongly about preparing and filing your own taxes, but are not as confident in your abilities to do so, you can always have a professional look over your tax return prior to filing.
Hire A Professional
If you already know that numbers are not really your thing, and that you do not have any time to allot for preparing your tax return it is probably best to begin your search for hiring a professional to help you prepare and file your taxes. Other circumstances can make hiring a tax professional advantageous. Several considerations to bear in mind where hiring a tax professional can actually lead to a lower tax bill (even though you have the added expense of paying the professional for his or her services) include one’s comfort level and ability with navigating tax forms, if an individual is a business owner, if an individual is a homeowner, the number of dependents an individual claims, if the individual has moved states in the past year, if one’s tax situation has drastically changed, and more. The speed at which tax laws are continuously changing, on both federal and state levels is immense. If there is any confusion surrounding taxes, it is best to seek guidance from a professional to assure accuracy and avoid the risk of unnecessary penalties. It may seem costly, depending on the type of tax professional chosen, but assuring your taxes have been completed correctly and filed on time can ultimately save you money, in the long run, and provide piece of mind.
For Further Information
If you follow your instincts and are clear with your needs you will likely find an accountant that is an excellent fit. While the task to connect with the right accountant may seem overwhelming, please keep in mind it will be worth it in the long run. The financial guidance that a good accountant will provide during one’s lifetime can result in significant financial gain. With the full range of accounting services Allman & Allman APAC provide, we are certainly equipped with the expertise for which you may be in need. Seeking guidance from our firm will proved you the opportunity to work with individuals armed with broad and deep financial knowledge, able to provide advice on a wide range of issues. As a full-service public accounting firm, our professional services will surely help you succeed and thrive. Please feel free to reach out to Allman & Allman APAC via email at [email protected] or via phone at 760-773-1120 (Palm Desert) or 310-544-1120 (Rolling Hills Estates) to discuss your situation and find out how we can help you grow. We look forward to hearing from you.
References
“Free File: Do Your Federal Taxes for Free.” Internal Revenue Service, www.irs.gov/filing/free-file-do-your-federal-taxes-for-free.
Loudenback, Tanza. “Should I Do My Own Taxes or Hire a pro? Here’s How to Decide.” Business Insider, Business Insider, 24 Jan. 2020, www.businessinsider.com/should-i-do-my-own-taxes-or-hire-accountant.
Smith, Carrie. “7 Reasons Why You Should (and Shouldn’t) File Your Own Taxes.” HuffPost, HuffPost, 10 Apr. 2013, www.huffpost.com/entry/tax-advice_b_2638785.
You made a good point that it’s better to just hire a professional for tax return preparation services because of ever-changing tax laws. I recently quit my job and started as a freelancer online so I’m not quite sure how that would change the way my taxes our done. I hope that I can work with an accountant that wouldn’t only do the heavy lifting for me but also explain to me the specifics.