With tax season right around the corner, it is time to start thinking about how you want to get your taxes taken care of.
Taxes are always a pain, but there are many people who slog through them anyway, grimly crunching the numbers to get the right solution. On the other hand, there are other people who are willing to simply hand a load of papers off to a skilled professional, paying for the convenience of moving forward without worrying about the issue themselves. What should you do?
Hire a pro?
1. You have multiple income streams
The more income streams you have, the more complicated your taxes are going to be, and the more forms you’re going to have to fill out. The issue that many people run into is that after a certain point, their finances are so complicated that it’s very difficult to figure out what kind of forms they need to fill out and what kind of documentation is important. This is something that can make things very difficult for the layperson.
2. You’re pressed for time
If you’re like many people who have left it off until the last moment, you’ll find that having a tax accountant take care of your taxes for you can make a big difference. You need to hand everything over to them, but in general, a tax accountant can finish things a lot faster than you can.
3. You want to get more money back
A good tax accountant can make sure that you get the kind of write-offs and tax credits that you need. They can point out things that you should be writing off, and they can show you where to put your money so that the taxes are lower. This tricky to do yourself unless you have training in this area.
Do your own taxes?
1. Your taxes are relatively simple
If you’re a single person with a single income and no investments, you can generally do your own taxes inside of an hour. The same goes for if you’re married with two income streams and no children. The simpler your taxes are, the easier they’re to take care of on your own.
2. Nothing has changed
If nothing major has changed over the course of the year, you might as well do your taxes yourself. You can use your taxes from the previous year as a model. This is a good choice for people who can follow directions well and who are fairly independent minded. Even if your taxes are fairly involved, you can use your previous year’s forms as a model for what you need to look for. Doing this can save you a fair amount of cash.
3. You don’t have the money to have them done
Let’s face it, having your taxes done costs money. In some cases, it can be surprisingly pricey. If you don’t want to give up the cash, consider doing the taxes yourself or going to a free service that will help you prepare them. Remember that if you are going to do this that you should allow yourself plenty of time to get your taxes done. Do not leave this task off until the last moment.
Tax season is always a bit stressful, but take the time to figure out what you need from your taxes and how you need to manage them. Having a plan before your taxes are due is important, and the more prepared you’re, the more smoothly it will go for you. Take a moment to decide what you are going to do this year!