By Livia Liste, L&M Naples MultiServices Consulting Agency, NaplesMultiservices.com
Every year most Americans face the same challenging decision and it is how to file their tax returns. According to an IRS publication “about 90 percent of individual taxpayers was filed electronically in 2019” — that’s is high record high. But most of the IRS computer-prepared and e-filed were completed by tax professionals.
So, the question is: – Why should I hire a tax professional to do my taxes online when I can use similar software to do the job myself?
Here are some answers to your question(s)
- How much money are you willing to spend?
The truth is that a tax professional fees may vary, and you can pay anywhere from $69.99 to $299.99 for simple filing. Keep in mind that the dollar amount to pay may go up due to the fact that many of our households require a lot of forms, lengthy forms that are time consuming. On the other hand, you can buy a tax software for less than $300 using the discounts offered during the tax season. If your adjusted gross income falls below $64,000, you can use the IRS’ Free File tool which (as the name says), allows you to prepare and file your taxes at no cost.
- How much time are you willing to spend on filing your taxes?
Of course the dollar amount spent doing your taxes is worth consideration, but we often forget the value of our own time.
According to the IRS the average time spent to complete a Form 1040 is 16 hours and this is the most common form. When we count the hours to complete a return, we must take into consideration how are we going to be gathering records, filling out and submitting the return.
In the other hand when you use a tax preparer, after you gather tax statements and once you deliver the necessary documents, you’ll have more time for yourself and your own stuff.
- What is the complexity of your tax life?
If you’re a single person that had one job and your only investment is your workplace 401(k) a tax software should work fine. Even if you are married, have a child and itemize deductions a software will walk you through these tax situations. But if you are married with children, multiple jobs, self-employment income, investments, bought a home, started college and/or have investment properties hiring a professional tax preparer it’s probably the best tax advice and guidance I can give you today.
I am not telling you that a tax software cannot handle these more complex tax situations, but it will not talk with you about what are your plans, investments and how it could affect your taxes. However, a tax professional can (will) outline what might happen if you invest, donate or sell the stocks, inherited property or other assets you will have to report in your taxes. A tax advisor can give you insight into tax law that will apply to you whether you move assets (or not).
- How ready you are to deal with the IRS?
Remember that by signing your tax return, you are fully responsible for all the information contained on the forms. If you fill your own tax return, that means that you’re the one the IRS will come to with questions (if any) and it might happen years after you’ve filed. However, by filing out a line on your 1040 form, the tax professional displayed there will be the contact person for the IRS to bring any questions about the filing.
If you are confused by your taxes or have a lot of questions, hiring a tax professional it’s probably the best idea.
About Livia: She is originally from Camaguey, grew up in Nueva Gerona, Isla de la Juventud, Cuba. Her first steps in the workplace were in the Cuban pharmaceutical industry but for more than 15 years she has been serving the Southwest Florida community as a tax preparer, also offering notary services, immigration document preparation and a variety of services as a travel agent.
Livia is a woman with an excellent sense of humor and solidarity with her family and the community. This Cuban mother of three beautiful girls whom she adores not only loves music but is an avid reader of novels and personal development books.
Her favorite phrase is:
“It is better to act exposing yourself to regret it, than to regret not having done anything.”
-Giovanni Bocaccio
