A lot of people think that doing their own taxes is easier and will save them money. Although this is the case for a person with a very simple return, Forbes states that doing your own taxes isn’t the right choice for everyone.
If you have children, a business, or other factors that might cause complicated financial transactions, it is more advisable to hire a tax accountant to do your taxes. As tax accountants, on average, charge $246 for their service, R & G Brenner estimates that you can save over $500 if you hire one.
Here are signs that you should finally let a tax accountant do your taxes:
Your Annual Income is $200k+
According to Kiplinger, people who are earning more than $200,000 a year is 3.7 percent more likely to get an audit. Although it seems like a small number, people earning under $200,000 annually only have a 0.9 percent chance of getting an audit. It is more helpful if you have a tax accountant to advise you if you get a phone call from the IRS.
It’s Taking Too Much Time
Taxpayers spend about 5.4 billion hours yearly in order to comply with 2,500 pages of tax laws. If you’re doing your taxes to save money, but it’s taking too much time, then hiring a tax accountant is a more cost-effective solution.
Trusts for Children
Saving money is important to ensure your children’s future. Tax accountants can be helpful when you’re trying to decide strategies for your children’s trust or college saving plans, especially if you have no idea where to begin.
Owning a Business
Whether you have a business, are self-employed, or are renting out some of your properties, a tax accountant has the knowledge to help minimize your taxes by depreciating your business or real estate assets.
Doing your own taxes has its merits, but make sure it’s the right choice for you.