Tax preparation can be an extremely dreadful time for most people. Depending on your own situation, hiring a tax professional may or may not be beneficial. If you are self-employed, or if you have experienced many changes in your life during the tax year, you may want to consider hiring a professional to do your taxes. There are certain situations that may call for hiring a tax professional and vice versa.
When to Hire an Accountant
There are various circumstances that may indicate you should hire a tax professional. In many cases, there are big benefits to seeing an accountant if you have an overly complicated situation.
For example, owning your own business is probably one of the biggest reasons why people hire an accountant to file their taxes. This will ensure that you don’t make any mistakes that can cost you in the long run. Your accountant will also be able to determine the amount you should pay quarterly to make sure that you are not faced with a huge tax bill when it comes time to file again.
Have you experienced recent life changes? Your financial situation can become more complex as you get older. Your tax picture will ultimately change as well. For example, if you purchase your first home within the tax year, your taxes will be impacted depending on how you file. An accountant can ensure that you are benefiting from any and every tax break that you qualify for.
When not to Hire an Accountant
There are certain situations that actually don’t require the use of an accountant if you fall into one of these categories:
- You are single
- Your tax situation has not changed within the past year
- You don’t have any dependents
- You work for an employer
- You don’t own any property
These situations would make your tax return pretty basic, so you would benefit from just using a tax software program to prepare your taxes on your own. It may not be worth the expenses to pay a professional if there’s nothing going on that can cause your taxes to be more complicated.
Other Options to Consider
Many people do just fine using tax software to complete their taxes. Tax applications nowadays make it extremely easy and convenient to prepare and file your tax returns right from your mobile device.
Some people may even qualify for IRS Free File. This is a federal program in which you are allowed access to a software program that will file your taxes at no cost. If your adjusted gross income is less than $73,000, you would qualify for the program. Additionally, other retail services use the same types of software that you can purchase on your own to take care of your taxes.
Also Read: A Business Tax Preparation Checklist