| Should You Do Taxes Yourself? | | | | use a certified public accountant, or CPAs. They are |
| It's that time of year when you need to file your taxes. | | | | certified by the state and should posses the |
| With thousands of pages of tax code, the entire | | | | knowledge, skill, and experience to prepare and defend |
| process can be difficult to understand. However, you | | | | your tax return. Anyone other than a CPA will not be |
| can do your taxes yourself with any one of the | | | | qualified to defend your tax return in case of an audit. |
| excellent tax software available at your local office | | | | When Should You Hire Someone? |
| supply store. | | | | If you have investments, real estate transactions, run a |
| Benefits Of Doing Taxes Yourself? | | | | business with employees, or have special |
| You have the potential of saving hundreds, if not | | | | circumstances and entitlements, you might want to hire |
| thousands of dollars doing taxes yourself. Most tax | | | | someone to do your taxes for you. In these instances, |
| preparers charge anywhere from $100 and up for | | | | make your whoever you hire is a CPA and specializes |
| even the most simple tax returns. There is also the risk | | | | in doing the tax returns that match your tax situation. |
| that the tax preparer will miss something or make a | | | | Not all CPAs are the same. Having a CPA license |
| mistake, which can cost your even more in missed tax | | | | does not necessarily mean they have the tax |
| deductions, penalties and interest. On the other hand, | | | | expertise to help you with your particular tax situation. |
| for a simple tax return, you can do that online free at | | | | Be sure to ask the CPA what kind of experience they |
| the IRS website, or use one of the several free online | | | | have and what they specialize in before hiring them. |
| tax filing programs that are partnered with the IRS and | | | | This is especially important when you are dealing with |
| are members of the Free File Alliance. For more | | | | large sums of income and expenses when even a |
| complicated returns, many of the FFA partners | | | | simple mistake can mean thousands of dollars in |
| proprietary online software can handle those as well. | | | | missed tax deductions or penalties and fines. |
| Disadvantages Of Doing Taxes Yourself? | | | | Summary |
| Doing taxes yourself has risks too. If you are not | | | | Filing taxes yourself can be simple, save you hundreds |
| familiar with doing taxes or your tax situation is | | | | of dollars, and you can prepare them directly with the |
| complicated, you are more likely to make more | | | | IRS or with any one of several FFA IRS partners. If |
| mistakes than a professional preparer would. In | | | | your tax situation is more complicated by investments |
| addition, professional preparers will usually represent | | | | or running a business, you should hire a Certified Public |
| you in case you get questions about your return from | | | | Accountant who specializes in those particular areas. |
| the IRS, or worse - a tax audit. | | | | Paying a CPA to prepare your taxes does not |
| Is Paying Someone To Do Your Tax An Assurance? | | | | eliminate the risk of getting audited, however it does |
| No, you can still get audited regardless of who | | | | greatly reduce chances of errors and they can defend |
| prepared and submitted your taxes for you. That is | | | | you in case of an audit. Just be sure to weigh cost of |
| why if you pay someone to do your taxes, always | | | | hiring a CPA against your estimated tax liability. |