How hard is it to do your own taxes?
You are a well –read person, you can sure do your own taxes and save hundreds of dollars that you might have to spend to hire someone for the same. Also, there are so many DIY Tax Software apps that can finish this job in a couple of minutes.
But the question arises , that can you really rely on these DIY’s for filing your tax returns or should you hire an expert – someone you can call and ask for guidance on such a critical issue and safeguard yourself from an income-tax nightmare?
Well, I shall leave the reigns of judgement in your hands and provide you with some important points that can help you in narrowing down your decision.
- Firstly, if your tax situation is complicated, you should not give this another thought and blindly hire an accounting expert.
Trust me you need one! By “complicated” we are referring to any tax issue that you cannot understand. Any large capital transactions should be passed through the hands of an expert unless you plan to invite trouble later on.
A good team of accountants specializes in providing tax preparation services in all kinds of tax related issues by seeking instructions you may actually end up lowering your tax bill.
- Secondly, you would not try to fix your laptop if you knew nothing about electronics, right? Then how can you risk your money when your knowledge about taxes is vague and limited? Opting for tax preparation service will not only leave you relieved but also guarantee that your tax returns are in safe hands.
- Thirdly, by signing your tax returns, you are responsible for all the information on the forms. Therefore, you’re the one the IRS will come to for any questions in relation to your form.
However, by appointing an accounting expert you can direct the IRS to the expert for any questions and also give him the power of attorney to represent you before the IRS in case of an audit.
- Fourthly, if saving time is your goal then an expert is what you need for your tax preparations. Preparing your own taxes requires time.
If having your taxes done quickly and effortlessly is your primary concern then hiring from an army of experts can do the trick for you. Employing specially-trained tax preparation experts can get your return completed as fast and seamlessly as possible.
If time is the key factor then an expert hand is what you need as he would not spend an inordinate amount of time dealing with your taxes. Independent accountants typically finish your tax returns within a few days after determining the tax credits and deductions you qualify for.
- Lastly, the most important question that you need to ask yourself before seeking guidance of an accounting expert is how much are you willing to spend? Most accountants charge for each form they have to fill out. Complex tax situation, obviously, being more expensive than the simpler ones.
Hence, paying a tax professional can add up, especially if your tax return filing requires a lot of forms and time. Therefore, it is important to keep your price estimate in mind and seeking advice thereafter.
Hence, an accounting expert can prepare your taxes quickly, professionally and most important, accurately. He can ensure that you get all the tax credits and deductions that you are entitled to. It is for you to choose if you would want to handle your taxes on your own or get a trained professional who can tackle any complex tax situation that you can face in lieu of your financial situation.
Before I wrap up, I would like to leave you with some key-points that you should keep in mind when you plan to take advice from an accounting expert for your tax preparation.
- Accountants have earned certifications and licences in their trade. Enrolled Agent (EA) or Certified Public Accountant (CPA) are some of the well-known publications. These individuals are authorized to practice before the IRS.
- Make sure that you are aware of the price ranges of your potential accountants. Inquire about any guarantees that they might offer and that they should offer to redo the tax return, without any extra charge, to edit any errors.
At the end of the day, it is you who has to sign the tax return. Hence, it is your responsibility to make sure that your tax return is accurate so that when the next tax season rolls around, you don’t ask yourself:
How do I do my taxes?