And it’s something a lot of people can easily do solo, perhaps with the help of tax software. But in some cases, you may want to outsource the task to a professional.
Of course, doing so will cost you. The average price for a professional to file a personal tax return is $220 to $323, according to the National Society of Accountants. But if any of the following circumstances apply to you, it could be worth it to pay for that help.
1. You’re Itemizing For The First Time
You have a choice when filing your tax return: You can opt for the standard deduction (the amount of which can change from year to year and is based on your filing status), or you can itemize your deductions in the hopes they’ll lead to a greater tax break.
Itemizing makes sense when your personal deductions exceed the standard deduction, and there are different expenses you can claim. These include interest on your mortgage, state and local taxes, and medical expenses depending on your income and total out-of-pocket spending. But if you’re new to itemizing, you may not know exactly what you can and cannot claim. It’s not unreasonable to hire someone to walk you through the process.
2. You Became Self-Employed
Taxes can get a little more complicated once you stop being a salaried employee and start working for yourself. If you became self-employed last year, it could pay to hire some help to complete your 2021 tax return. That way, you’ll know what expenses you’re eligible to write off and will be less likely to miss out on tax breaks you’re entitled to.
3. You Started Your Own Business
When you own a small business, there are specific tax forms you need to complete — forms you may be unfamiliar with. As such, it’s a good idea to hire a tax professional to tackle your return for you, especially if you’re new to the process.
4. You’re Just Plain Nervous About Botching Your Tax Return
It may be the case that your tax situation is fairly simple. But if you’re nervous about making a mistake on your taxes or failing to claim the right credits and deductions, then that alone is justification for hiring a tax professional. While you might pay a fee for that service, it could be worth doing if it means capitalizing on a tax break you otherwise would’ve missed while giving yourself peace of mind.
Don’t Hesitate To Get The Help You Need
As a general rule, it’s a good idea to outsource tax preparation if your taxes are complicated. But even if you’re a salaried worker with little to no outside income, it could still pay to hire someone if doing so gives you peace of mind. Many tax preparers charge reasonable fees for simple returns, so don’t assume going this route will end up breaking the bank.
Source: Fox Business