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Filing Taxes: DIY vs. Hiring a Professional for Tax Preparation

How To

March 29, 2018

A young couple figures out DIY tax preparation
Oh, tax season. There’s nothing like the mid-March to early-April stress of digging through boxes, folders and envelopes trying to find the right documents to file your taxes. If you read the previous post, you have an idea of what documents you’ll need in order to file your taxes, as well as have a few tax basics under your belt.

Before you file your taxes, you have to decide if you’re going to do it yourself or pay someone else to do it for you. Both options work. But depending on your situation, there may be an option for you that is better than the other.

Signs You Should File Your Own Taxes

  1. Your Situation Hasn’t Changed from Last Year: If your tax situation is comparable to last year, you may be able to do your taxes yourself. If you have had a major life change, got married, moved, changed jobs, got a raise, your taxes may be more complicated.
  2. You Have the Experience: If you are a numbers person or have experience with crunching numbers, you may be fine doing your own taxes. For someone who tends to get lost when dealing with percentages and numbers, this might not be for you.

Signs You Should Consult an Expert for Tax Preparation

  1. You’re Willing to Spend the Money: Hiring a tax expert isn’t cheap. Companies will charge you based on variety of metrics. Whether you are charged based on the hours it takes for them to complete your taxes, or the amount of forms that are required to be filed, you can expect to pay a couple of hundred dollars for your taxes to be filed.
  2. Your Situation is More Complex: If you own your own business, have multiple stock investments or have had a major life change, you are better off hiring someone to do your taxes. It is very easy to make a mistake on taxes and leaving the hard work to the professionals is always a good idea.
  3. You Haven’t Stayed Up to Date on New Tax Rules: If you haven’t stayed up to date with new tax laws, you may want to consider hiring a professional. With the passage of the Job Acts and Tax Cuts in December 2017, this is especially true.

ezStorage is Your Organization Expert

ezStorage is here for you for all things organization. We strive to offer you the best tips for a more organized life. Stay tuned for next month where we offer tips for what to do with your tax return and important papers after tax season is over. In the meantime, check out our blog for more How To tips.

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