Tuesday, November 13, 2018

When should you do taxes on your own or hire a Tax professional?

Taxes can be stressful, especially if you have a business, investments or IRS issues. Most people want to get through the tax season with little out of pocket or worrying about an IRS audit. The expense of filing taxes can be costly depending on what you own (businesses, Investments, Rental Property etc...). In determining, whether you do your taxes yourself or hire a tax professional here are some things to consider.

When to hire a Tax professional
  • ·         Taxes are complicated
  • ·         Owning your own business
  • ·         Rental property or taxable investments
  • ·         Foreign income
  • ·         Life changes ( Marriage, divorce, retirement, inheritance ,birth ,property sale)
  • ·         New tax Laws
  • ·         Tax Planning

When to do them yourself
  • ·         You understand the Tax laws
  • ·         You don’t have any property or investments
  • ·         Your taxes are straight forward with the usual deductions (normal W2)

Keep in mind, having a tax professional has its Pros. A tax professional can represent you with the IRS and generally insures your returns are prepared correctly.  The next time you want to prepare your own tax return remember there are options that should be considered.

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