Filing Taxes Online Vs Using An Accountant
Can you believe it’s almost 2020? If it looks like last year, time will pass. Before you know it, it will be April, and you will strive to respect the deadline for filing tax returns. This is the most wonderful time of the year, but it all depends on a few factors.
We can all agree that doing taxes can be a hassle. But no matter how long you wait, you should always do them.
If you do not want to do your taxes yourself – and we do not blame you if you do not – you might consider teaming up with a tax expert/Accountant. But is this the right choice for you? Or do you want to do your taxes online? It depends on you and your situation.
Here are some useful tips to make the choice a little easier;
When It’s Reasonable To File Your Taxes Online
When we make big financial decisions, we want to hire a professional. It’s just smart to seek the advice of an expert. But there are also times when filing your tax returns with online software would be an okay option.
Do you need an accountant if you have a basic W-2 and plan to benefit from the standard deduction? You probably won’t need one.
If you have a simple financial situation and are not stressed by your taxes, depositing by yourself is a good option. You can use tax software online with confidence.
Online tax preparation sites do a good job of guiding you through the process but remember that you will need to free up some time before collecting your documents.
When It’s Okay To Hire A Professional Accountant
Sometimes your taxes can go from simple to not so simple in the blink of an eye. You should consider using a tax specialist if you:
- Own a business.
- Have several sources of income.
- Plan to detail your deductions.
All of these scenarios make your taxes much more difficult, which can make you make expensive mistakes.
You may have other reasons to consider an experienced Accountant. Maybe you are nervous about all the new tax changes and know that you will have more peace of mind with a professional. Or maybe you would have no problem putting your taxes on your own, but you do not want to. Do what’s best for you. Even if your taxes are not complicated, it is sometimes wise to seek professional advice.
Why A Professional Accountant Is Preferable To Filling Your Taxes Online
Here are four scenarios, for example, in which it might be useful to hire a professional:
- You have a small business or a secondary business: If you own your own business, there are many possible tax write-offs, and a local Accountant has the expertise to help you manage them.
- The IRS contacts you: Even if the IRS asks for something as simple as justifying the expenses related to a car you bought, it’s advisable to hire a professional. After all, you do not want to give the IRS any wrong or irrelevant information.
- You expect your children to go to college: If you have a child going to college, and you plan to complete the Free Application for Federal Student Aid (FAFSA), an Accountant may be helpful. You obviously would want to make sure you do not have any unwanted assets or income on your child’s behalf.
- You own a rental property: A return on real estate investment can become tricky, and a professional can help you determine what types of deductions you are entitled to have.