Should I Do My Own Taxes or Hire a Tax Pro?

January 29, 2020
By: Stacey Nickens

Can you believe it’s 2020 already? Today is the first day of tax season. So on your mark, get set, and get ready to file. Right about now you’re probably collecting and organizing your tax records.

When it’s time to file your tax return, you have several options. It can be a daunting and time consuming task – one that leads to a lot of frustration.

But you don’t have to go it alone. Professional tax preparers are paid to keep up with the tax code and their expertise can help ensure that you get all the deductions and credits you are eligible to receive.

Here are the top 10 reasons why you may want to hire a professional tax professional:

• It can save you money. If your tax preparer finds even one deduction or tax credit you may have missed, it can easily exceed the fee it costs to have a professional prepare your
  return.
• You’re short on time. The Internal Revenue Service reports that it takes nearly 20 hours to complete the average tax return with deductions. Your time is worth money. How much is
  it worth to you to get that time back?
• You feel like you don’t understand the tax implications of your financial activities. Tax professionals can answer your questions and resolve issues. It’s very likely you will
  have questions about your taxes. Calling the IRS means you could be on hold for hours. Tax professionals can answer most of these instantly.
• Your tax situation has changed or you have a complicated situation. The tax code is very confusing. Professional tax preparers keep up changes in tax laws each and every year so
  you don’t have to. If you are surprised with a big tax bill, a tax professional can help identify the issue and guide you to a solution.
• You gain peace of mind. Just knowing that a professional is handling your taxes reduces stress.
• Making mistakes can be very costly. In terms of missed deductions or triggering an IRS letter or audit; a tax professional can help eliminate errors and ensure your returns are
  prepared correctly.
• You benefit with money-saving tax planning. Tax professionals can advise you now and all year round on the best strategies to make smart tax-saving decisions.
• Your previous returns can be also reviewed. A tax professional can look at your past returns to see if any deductions were missed and, if so, amend them for you.
• You can reduce your risk of an audit. And, if you are audited or the IRS starts asking questions you can’t easily answer, a professional tax preparer knows how to deal with the
  IRS. By signing your tax return, you are responsible for all the information on the forms. If you do your taxes yourself, that means you’re the one the IRS will come to with any
  questions.
• It takes the hassle out of doing it yourself.

If you plan to hire a tax professional to prepare your taxes, you do need to gather and organize your records, including W-2 forms, 1099 forms, mortgage and bank statements, charitable contributions, and so forth. Being organized saves your tax preparer time and keeps the fees down.