Preparing taxes can be difficult, but it can be easier if you are well organized and have the right person preparing them. You have to decide if you can prepare them yourself, or if they require a professional. Below are the reasons you might choose both options.
Do It Yourself
The most significant advantage of preparing your taxes is that it will save you money. Websites are available with free software that will help you prepare and file your tax returns. Software offered by tax preparers such as TurboTax or H&R Block have both basic and advanced versions depending on what your tax needs are. The advanced versions will cost a nominal fee, still less than paying a professional tax expert. While you would still prepare your return yourself, some of these sites offer free advice to users by a CPA or expert.
Another advantage of preparing your own taxes is that you do not have to share your personal information with anyone. Most professional preparers are reputable and easy to trust. But sharing personal information such as your social security number and address still puts some risk on your identity. Preparing taxes yourself minimizes these risks.
Some cons exist in preparing your own taxes, as well. Doing your personal taxes can take a lot of time you may not have. Also, tax laws and rules can be challenging to understand if your return is more complicated.
Errors and missing crucial information or deductions is another con to preparing your taxes.
These pros and cons about preparing your taxes should be heavily weighed as mistakes can make a big difference in what you owe or are owed you or can even trigger a dreaded audit.
Professional Tax Preparer
One of the biggest advantages of hiring a tax preparer is that it will be error-free. Even the IRS will be more confident in accepting your returns if prepared by a professional. Another great reason to hire a professional is that it will save your time to have them do it for you. A professional will also be an expert on how to get the most out of your taxes. Their knowledge and experience will allow them to find deductions and ways for you to pay fewer taxes or even get some money back. Another good advantage is that they are always current on the laws. Their job is to represent you and your interests.
One of the cons of hiring a professional tax preparer is the expense. This should be weighed as it may be worth the cost if you get a greater return or lower taxes for hiring them. Another is that you have to trust them with extremely sensitive personal information. In most cases, this would not be an issue, but anytime someone has access to your social security number, or other personal information is a bit of a risk.
If you want an error-free tax return, then you might want to consider consulting an expert, this choice can be expensive. But the value could be great if it gets you better results or keeps you from being audited. If you plan to do your own taxes, it will save you money and could be favorable if your returns are uncomplicated. Whichever you choose, it should be what is best for you.
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