Tax time could be a stressful time of year and one that means impending expenses to be paid, or it could be a breeze so much so that you wonder why everyone has a freak out around tax time. A way to potentially ease your tax-time stress is filing your taxes the right way—and no, we don’t mean jointly or separately.
The choice of choosing whether you want to hire a professional vs. handling it yourself can be likened to any job or project. Cost is a factor, as is time investment and skill. Let’s take a look at some advantages of both methods.
If you file yourself, you’ll usually save a good bundle of money. There are tons of services out there that let you file your taxes yourself—often, for little or no cost. If you’re looking for the budget-friendly option, filing yourself is probably it.
You can also save yourself a lot of time by filing separately if you don’t have very complex financial needs. If you aren’t itemizing and looking for every deduction, you can breeze through the process in no time at all by filing online. If you’ve got a more complex situation, this option may be best left by the wayside.
Hiring a Professional
By hiring a professional to do your taxes, you can add a personal element. Like a trusted family physician, an accountant can learn about your specific situation and what’s important to you. They can even make suggestions you’d never think of. Never underestimate the value of good advice.
Accountants also shine when it comes to complex situations. If you’ve got a lot of different deductions, or you may be managing a business or two plus a few rental properties, filing taxes can quickly become overwhelming. Having a knowledgeable resource to answer your questions and wade through the murky areas can be a lifesaver.
The Bottom Line
When everything is said and done, you need to consider your or your family’s personal situation. Are you looking for a budget-friendly, speedy and simplistic approach? Or, are you trying to find a knowledgeable expert to handle your complex financial needs? That will determine how best to proceed.