Hiring a tax accountant can be expensive, so you may consider doing your own taxes. But before making that decision, you should carefully evaluate (1) whether you are capable of doing them yourself and (2) if so, how to proceed.
You might feel comfortable doing your taxes if:
- Your taxes are relatively simple
- All income is reported on W-2s and/or 1099s
- Most things have stayed the same since last year, such as marriage status, jobs, etc.
- You will take the standard deduction.
- Your taxes are a bit more complicated, but you are willing to take the time to read the IRS instructions.
- You have self-employment income as a single owner and feel confident to complete the Schedule C form.
You might be better off hiring an accountant IF:
- You have multiple sources of income.
- You worked numerous jobs or worked in various states.
- You sold a home, investments, or a business
- You have investment properties
- You have investments in foreign companies.
- You own a company with business with partners.
- You want to be sure to maximize all your deductions and get the most significant tax refund possible.
Options for Preparing Your Taxes:
- IRS Fillable Forms. You can complete your taxes and file them online; however, no guidance is provided, and you must perform some calculations yourself.
- 1040-SR is for taxpayers over the age of 65. All other taxpayers use 1040.
- For helpful links when using fillable forms, go to https://www.irs.gov/e-file-providers/free-file-fillable-forms-help.
- Tax Software—These five options were ranked as the top 5 online tax software providers by Forbes. You should compare options to determine which one is best for your particular situation.
- TurboTax
- H&R Block
- TaxSlayer
- CashApp
- Jackson-Hewitt Online
If you have not completed your taxes yet, it’s time to get to work. Tax returns are due on April 15. Check back next week for tips on minimizing penalties and interest if you are not able to complete and file your return on time.
Susan's Reflections 