Filing taxes on your own is by no means a simple task — you should expect the process to take you at least a few days. First, you need to find all your records, then input the information into software, and, finally, you must double check everything to confirm there are no mistakes. Even after all this time and effort, you may be missing out on deductions that are not offered through software, such as less-common deductions applicable in your situation.
If you are still unsure that it would be worthwhile for you to use an accountant, consider all the benefits going through a tax preparer brings you:
1. Your Time Is Money
More than two-thirds of taxpayers use Form 1040. The IRS estimates that it takes around 16 hours to complete this form, from collecting information to submitting the return. With an accountant, you cut this time down to just how long it takes you to gather documents. Although you will be paying your accountant, when you take into consideration that your time has value, you are actually saving money from the start.
2. If Your Situation Has Changed, Filing Will Be Even More Complex
If the amount you make has notably changed or if you have purchased a home for the first time, inherited property, had a child, gone through a divorce, or experienced any other major life change, your tax situation will have become more complicated. This will add to the time it takes you to file a return using software. In any of these circumstances, you would also benefit from the guidance of a tax professional.
3. You Won’t Need to Deal with the IRS
When you sign your own tax return, you are responsible for the information it contains and for ensuring that everything is accurate. If there are problems with your tax return, the IRS will come to you with any questions. This could even happen several years after you file. In contrast, if you go through an accountant, you can refer the IRS to your tax preparer. In other words, using an accountant will give you peace of mind for months and years after you file.
Going through an accountant only increases filing costs by a small amount and it provide you with significant savings through deductions. You’ll also avoid a stressful few days of navigating the tax system on your own, saving yourself valuable time. Whatever your situation, you should consider hiring an accountant for your taxes this year.