When it comes to the question of whether or not it’s better to hire a professional to handle your taxes versus doing it yourself, unfortunately, there is no single right answer. Read on as Liu & Associates discusses some key factors that will help you determine what path you should take next tax season.
When to DIY
Your Taxes Are Simple
If you have had only one job in the past tax year, have no dependants and no investments, consider filing on your own by using a free online tax software.
Your Financial Situation Hasn’t Changed
When you purchase property, get married, or have a child, new deductions and credits become available to you and it can be beneficial to have a professional to help inform you of these. If you haven’t made any big changes in the past tax year, you probably are aware of the deductions and claims already available to you and can stick to the DIY route.
It’s Not in the Budget
Doing your own taxes will absolutely save you money. There are lots of free online tax filing softwares that will guide you through the process.
You’re Willing to Do Research
If you’ve done a great job of keeping everything organized over the year (receipts, forms, etc.) and you enjoy doing a bit of research, you can learn a lot about the different deductions and claims that you are eligible for. While time consuming, if you enjoy learning about these things it’s a great way to save some money!
When to Hire a Professional
Your Taxes Are Anything but Simple
If you are a business owner, are holding multiple investments, doing freelance work, etc., you will benefit from hiring a professional. The reason being is that there are lots of deductions associated with these areas, and a tax professional is going to be able to help you identify these and ensure you’re getting the most out of your return.
Your Financial Situation Has Changed
Any big changes in your life (marriage, divorce, purchasing property, etc) will open up new deductions and claims for you to take advantage of. Again, having a professional on your side will allow you to maximize your return and make sure you are utilizing what is available to you.
You’re Willing to Pay
A tax professional’s prices can vary between $70-$200. Depending on your return, the initial investment may be worth it!
Yuu Don’t Want to Do the Research
Many people simply don’t want to spend their time researching tax laws, and that’s okay! Passing the work along to a professional can allow you to spend time on other, more enjoyable things.
Looking for Tax Help?
If you’re looking for help on your next personal or corporate tax return, contact the team at Liu & Associates. Let our tax experts get you the most out of your return while you rest easy knowing your return is in knowledgeable hands. Get in touch today!