As tax season approaches, you might be considering hiring a pro to handle your forms. For one thing, it takes the guessing game out of doing taxes. However, before you go through with hiring someone to file your returns, you should think the decision through. Here’s a look at the benefits of doing your own taxes or hiring a pro to do them for you.
Filing Your Own
If you have a fairly straightforward tax situation — let’s say you’re single and no kids — you might want to file your own returns. The less your life has changed, the more reason you have to file your own taxes. If you got married or divorced, or maybe you had a baby — those are changes that could impact your tax filing.
The best part about filing on your own is that online tax software makes it quite easy. You don’t even need to pay for that software. The IRS offers its own software — called Free File — to file your taxes for free. You can use this system to file your taxes as long as you earned $72,000 or less in 2020. Check out the IRS’ site, and if the system seems easy enough, you should try filing on your own. Filing on your own will save you money.
Hiring a Pro
If your tax situation is simple, you likely want to file on your own. On the flip side, if things are complicated or have changed massively since the last time you filed, this might be the year to hire a pro.
What you don’t want to do is avoid hiring a pro just because you want to save a little cash. As USA Today reports, if your tax situation seems difficult, then it likely is. Hiring a pro to help might ultimately be the smartest move, because even though it will cost you some money, they could find tax credits that you might have missed. Those credits turn into a bigger refund.
Think things through before filing your own taxes or hiring a professional. The more you sift through the decision, the more likely you’ll make a choice that makes you happy.