No one likes spending money to have their taxes done. However, sometimes you can actually save money by hiring an accredited tax preparer.
Your decision to do your own taxes or use an accredited tax preparer largely depends on your specific situation.
When to Do Your Own Taxes
If you have been doing your own taxes for years and your finances have not changed much recently, then you can probably save some money by preparing your taxes without a professional.
Remember that you also have the option of using tax preparation software. Many companies have online software that will calculate your deductions and guide you through the process. Many of them also have customer service reps that can answer specific questions that don’t fit into the average taxpayer’s circumstances.
Even if you have been doing your taxes by yourself for years, you might want to meet with an accredited tax preparer. Tax codes change from year to year, so meeting with a professional every so often will help ensure that you take advantage of every opportunity.
When to Hire an Accredited Tax Preparer
You Own Your Own Business
If you own your own business, then you should seriously consider hiring an accredited tax preparer instead of trying to do your taxes on your own. Hiring a professional will help ensure that you take advantage of every deduction.
A good tax preparer can help you save enough money to pay for his or her services. Plus, they can help you avoid common mistakes that increase the chance that the IRS will audit your business.
You Are Self-Employed
You should also consider hiring an accredited tax preparer if you are self-employed. Even though you might not think of yourself as a business owner, the IRS could see your position differently. This means you can take advantage of many business deductions. Hiring a professional will help you find all of those deductions so that you save money on your taxes.
You Bought Property Last Year
Buying property can change many things about the taxes that you pay, so you should definitely hire a professional. They can help you take advantage of all tax credits that you qualify for. These change from year to year, so it’s best to hire an accredited tax preparer even if you have bought property in the past and think that you know how to incorporate this change into your tax profile.
You Had Children
Dependents can change everything about your tax profile. Plus, you’ve probably spent a lot of money on them in the past year. Be sure that you get some of that cash back by hiring an accredited tax professional.
You Changed Jobs in the Last Year
Changing jobs usually means that you are now earning more or less income than you did in the previous year. This can have a significant effect on the amount of taxes that you pay.
Accredited tax preparers will know how to determine the exact ways that your new job affects your tax status.