Taxes are due this year on April 15, which means you still have plenty of time to get your paperwork in order and finish your return ahead of the deadline. But who’s going to be the one handling your return? Is it you, or an accountant?
You may be inclined to tackle your taxes solo. And if your return is truly simple, then you might as well save yourself the money a professional would charge you.
Let’s say you’re a salaried worker and you need to report W-2 wages. Let’s also say you have to report $120 of interest income from your savings account and $700 in gains from your brokerage account. That’s pretty easy. You simply copy over those numbers from your tax forms and call it a day.
But not everyone’s taxes are as simple as that. So ask yourself these four questions to see if hiring tax help makes sense this year.
1. Am I itemizing?
Once you make the decision to itemize on your taxes, you automatically take on extra steps in the filing process. Those steps may be worth taking, but it’s additional work nonetheless. In that situation, it could be helpful to hire an accountant so you don’t accidentally skip over deductions you’re allowed to claim.
Also, a tax professional might spare you from claiming an erroneous deduction. Let’s say you donated furniture to a charity. You can’t deduct the full cost of those items — only their fair market value. An accountant can work with you to figure out what that entails so your return is less likely to raise a red flag with the IRS.
2. Am I self-employed?
There are many tax benefits to being self-employed. Unlike salaried workers, you can deduct certain expenses related to doing your job, like a home office or travel. But you may miss out on some of those deductions if you attempt to file your taxes on your own, which is why it could, in your situation, make sense to get help.
Also, claiming the wrong deductions is a good way to get your tax return audited — even if you do so not to be deceptive, but because you made a mistake. A tax professional is apt to know the rules better than you do, so hiring one could help you avoid a headache.
3. Am I filing a state tax return in more than one state?
It’s not just a federal tax return you have to worry about filing in 2024. You also have to file a return in your state of residence. But depending on your situation, you may be looking at two state tax returns, such as if you split your time evenly between two states or if you live in one state but work in another.
In a situation like this, it’s a good idea to get some help with your taxes. You want to make sure you’re not accidentally being taxed twice on your income.
4. Has my tax situation changed?
Maybe you got married in 2023 and therefore have a new filing status to contend with. Or maybe you had a baby last year and have a whole new set of potential credits you can claim.
Any time your tax situation changes in a meaningful way, it’s a good idea to enlist some help. Spending a little money might help you avoid a scenario where you miss out on a tax break you’re entitled to.
It never hurts to hire help
Remember, the only real drawback to hiring an accountant for tax help is the fee at hand. But you may be surprised at how reasonable that fee is. And the tax savings you reap by virtue of getting help might more than make up for the fee you pay.
Mark Steber, Chief Tax Information Officer at Jackson Hewitt Tax Services, says, “I almost always recommend people work with a tax professional rather than risk filing a tax return by themselves.” And that’s advice you may want to take to heart in the coming weeks.
Alert: highest cash back card we’ve seen now has 0% intro APR until 2025
This credit card is not just good – it’s so exceptional that our experts use it personally. This card features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes.
