There are two things in life people can't avoid: death and taxes. As bothersome as taxes may be, it's impossible to escape them. One major question everybody asks themselves when tax season rolls around is whether they should do their own taxes, or hand them off to an accountant. You might assume doing your own taxes has its benefits, but it often ends up being more trouble than it's worth. Letting an accountant do your taxes can save you money and stress. If you're struggling with what to do next tax season, consider these four reasons why you shouldn't prepare your own taxes.
1. You could lose money. One way you can lose money is if you don't do them correctly. Because of the confusing nature of tax forms, it's not hard to make a mistake, and that mistake could result in a letter from the IRS stating that you owe them a sum of money. Hiring an accountant might seem more expensive at first, but doing your own taxes could be much more costly in the long run.
2. You could minimize your refund. There are multiple tax credits out there for people to take advantage of, and not taking advantage of these credits could minimize your tax refund. For example, did you know there is a tax credit for money you spend on energy- saving home improvements? An accountant will take advantage of all the tax credits you're eligible for and will therefore increase your refund.
3. You're missing an advocate. If you were to be audited after filing your taxes, you would want an accountant who could be an advocate for you, and help clarify any questions the IRS has. Additionally, accountants provide many different services and aren't just knowledgeable about taxes. When you do your taxes on your own, you're missing out on the advice and guidance that a seasoned accounting professional could provide you with.
4. Life complicates taxes. Filing your own taxes might be easy if you only have one income, no dependents, and no investments. Unfortunately, life is much more complicated for majority of people, and these complications impact your taxes. An accountant knows exactly who is tax liable and what legal deductions you should take, which can make the tax process much more uncomplicated.
Knowing a professional like William M. Kaneski, CPA is handling all of your tax needs will not only take the dread out of tax season, but it will also give you peace of mind.