For most individuals, hearing the words taxes brings on feelings of anxiety and dread. The only exception to this are individuals who work a 9 to 5 job, make minimum wage, and have absolutely no side investments or hustles.
If you are someone who makes more than minimum wage, has a business on the side, any type of investments, or even owns your own business, then you know deciding how to plan to do your taxes is a big ordeal.
There are many good aspects to doing your taxes on your own, but typically the bad outweighs the good, and it is better to hire a tax professional.
This guide should help you visualize the pros and cons of hiring a tax professional.
CON: Upfront Cost
The upfront cost is typically why people avoid using a tax service in the first place. Although this makes sense, in the long run, you won’t actually be saving that much money.
This is because, depending on your tax needs, you will most likely reap way more money by using a tax professional than doing it yourself.
Tax professionals will be able to save you money and find loopholes that you might have otherwise missed. You might also get into legal trouble on your own, whereas a tax professional will make sure you do everything properly.
CON: You Must Plan Ahead
The best professional tax services are often busy and need to be booked ahead of tax season. Make sure you do not procrastinate, a tax professional to reserve your spot.
CON: Not All Tax Preparation Services Are Created Equal
Similar to how all ice cream does not taste incredible, the same goes for tax preparation services. Not all accountants or IRS tax professionals actually have the practice to do a good job on your taxes. You need to work with someone who has handled all aspects of tax preparation and truly wants the best for you.
PRO: You will Save Money
When using a tax professional you will save and have no costly errors. They will also be able to find extra deductions and help you avoid an audit.
PRO: You Will Save Time
Time money, therefore when you work with a tax professional and you save time, you are saving even more money.
There is no way around the fact that performing your taxes takes a good amount of time. If you are busy and unwilling to set aside at least 13 hours for your taxes, then hire a tax professional.
It’s unrealistic to put doing your taxes properly at risk. Set aside the money it costs to have your taxes done, sit back, and relax.
PRO: Tax Preparation Fees Are Often Deductible
One of the best aspects of hiring a tax professional is that the fees you pay them are actually tax-deductible. This means that most people are able to get a discount simply for paying to have their taxes done!
The bottom line is that unless you have an extremely uncomplicated tax situation, hiring a professional is typically the best way to go.