Whether or not to pay someone to prepare your tax return is a decision that largely depends on your confidence in calculating numbers and your understanding of tax rules. If you're good with numbers and understand the rules, it might be OK to go ahead on your own. But if not, you might want to pay someone to prepare your return. You also have other options.
Yes, even though a tax preparer is there to file your taxes, the preparation process can involve many moving parts. It's best to seek help that goes beyond simple data entry. The good news is that if you ask a tax professional to prepare your return, you can leave those questions to someone who knows the ins and outs of taxes. The best news is that you don't have to go to an office to get this experience. As a general rule, if you plan to apply for the standard deduction, there's really no reason to hire someone to prepare your tax return.
All you need to do is list your income from forms W-2 and 1099 and see where it takes you. In other words, if you can read and copy numbers, you're good to go. You can pay a modest fee for software (such as TurboTax) and file your own electronic return, or print a paper return and send it by mail. However, it's generally best to go electronically, as it will help you avoid mistakes, take advantage of the deductions and credits you're entitled to, and get your refund faster, assuming you're entitled to one. Standard deductions more or less doubled with the TCJA, making itemizing the details less attractive to taxpayers who chose this route in the past, not least because there were also changes to quite a few itemized deductions. If you can apply for free or pay for low-cost tax software instead of paying for tax preparation services, you can save a lot of money.
Ross refused to hire a tax professional for years, assuming that paying someone else to prepare his return would be a waste of money. However, if you have a relatively simple return, you can only use a few common forms (such as W-2 or 1099-INT), use online tax software, and file it for free or for less than what you would pay a professional. It's worth asking yourself each year whether you should pay your own taxes or hire an accountant. Knowing what you owe will allow you to take control of your finances, develop a plan to pay your taxes, and hopefully avoid going into debt. The deduction for losses due to accident and theft has been repealed, except for taxpayers who suffer a loss due to a disaster zone declared by the U.
S. However, while your 1040 may be simpler because this is the standard deduction, the IRS estimates that it takes nine hours for non-business taxpayers to complete a 1040 form. In conclusion, it's important to consider all of the factors when deciding whether or not it's worth paying someone else to do your taxes. If calculations are not your thing or if you want help taking advantage of deductions and credits that you're entitled to, then hiring an expert might be worth it. On the other hand, if you have a relatively simple return and are comfortable with numbers and tax rules, then filing on your own might be the way to go.