Have you been relying on a tax preparer to do your tax returns? Or are you new to the world of filing income tax returns? Either way, you might be wondering if it makes sense to do your own tax return. We have a few tips to help you decide what’s best for you.
The main deciding factor on if you should do your own taxes is the complexity of your financial situation. If you have a simple situation, i.e. W-2s and basic deductions, then doing your own taxes make sense. However, there are a few situations that may mean a tax preparer is the answer.
- You’re a Business Owner
From full-time businesses to side jobs, having your own business can mean your return is more complex. There may be special purchases or items you can write off that you didn’t consider.
- Major Changes
Has there been a marriage, divorce, baby or new home in the past year? This could complicate your return.
- Looking to Itemize
Many itemized deductions are pretty straightforward, but there may be some you haven’t thought of. Or you may have some that you’re not sure you can verify. To avoid trouble with the IRS, you may want tax advice from a professional.
Your Comfort with Numbers
If you’re like some people, the idea of working with numbers leaves you in a minor panic. If the idea of doing your own taxes seems too stressful, you may want to use a tax preparer. But if you like the idea of the challenge and enjoy crunching numbers, filing your own return may be ideal.
Not enough hours in the day? If your schedule is already overwhelming, adding one more task may be one task too many. Lighten the load and seek the help of a tax preparer.
An Alternative to Using a Tax Preparer
The good news is many of the above concerns can be solved if you use tax prep software programs like TurboTax. The software walks you through your return, step by step. TurboTax even reviews each section as you complete it and lets you know if you’ve forgotten anything or responded to something incorrectly.
Also, in recent years software like TurboTax give you the opportunity to speak to a CPA if you have any issues or questions. That way, you don’t feel like you’re on your own.
Chances are, your situation isn’t too complex to use TurboTax to file your tax return. There’s even a Home and Business version if you own your own business. Even better, WWFCU members can save on TurboTax and get their largest refund, guaranteed. Click here to learn more or start filing today.