Who doesn’t love saving money!?
Heck, I consider it a compliment when my sister calls me “cheap!” But after filing my own taxes for years, I finally sucked it up in 2015 and hired a CPA because I had a new business and I knew I was in over my head. It was one of the best decisions I ever made.
In 2015, 34 million American households had an accountant or tax professional file tax returns for them.1 Is hiring someone to do your taxes a good idea? Here are 6 reasons why hiring a tax professional is a smart idea:
- Convenience factor. The most obvious reason to hire a tax professional is for simplicity’s sake. If you don’t have hours to wade through 1099s, 1040 forms, and W-2s—or you just don’t want to—why would you drive yourself crazy?
- Cost-effective. As I mentioned last week, you can expect to pay between $100 to over $400 for a quality tax preparer. They are worth that price for the hours of headaches they will save you doing your own taxes. I also know my CPA got me hundreds of dollars’ worth of deductions I would have ignored or simply never read about.
- A good professional will understand your situation. Unlike tax software, you are dealing with an actual human you who can answer your questions. They will know the latest tax codes for complicated situations such as:
- Healthcare costs
- Small businesses
- Retirement contributions
- Student loan interest
- Mortgage interest and real estate taxes
- Finding one can be easy. I had no idea how easy it was to find a tax professional—word of mouth. My father highly recommended his tax preparer to me, and I have been so happy to work with her. Other ways to find good referrals:
- Ask friends, co-workers, and other acquaintances
- Crowdsource suggestions on social media
- The IRS even has a directory
- You have a lot of choices! There are over 1 million taxes professionals in the United States. Do not hire the first person recommended to you. Don’t be afraid to interview two or three people who were recommended to you. Do you click with the person? Are you comfortable working with them? Do they readily answer questions that directly pertain to your tax situation? If they don’t, that’s OK—just move to the next person on your list.
- Support local businesses. I never even considered a storefront tax preparation service like H&R Block. As a small business owner myself, I am passionate about supporting other local entrepreneurs when I can. I like to keep my money in my city’s economy, and my tax preparation fee helps support my friend Lisa and her small business.
Because it will save your time and hassle and especially because you are supporting a local entrepreneur, I feel strongly about hiring a tax professional to do my taxes. If any of these points resonated with you or you are just feeling too overwhelmed this year, consider adding a tax preparer as a valued member of your financial team. There is nothing with reaching out to ask for help, and so many good professionals want to help you!
Have you hired someone to do your taxes? Comment below and tell me about your experience!