Should you file your own taxes or pay a professional?

Once again, it’s tax season.

Filing your taxes can be a stressful and unpleasant process. Now that the tax season is underway, you’re once again asking yourself … Do my own taxes or hire a professional accountant?

Your tax preparation options

There are two basic options when filing taxes:

• Use tax software or through the IRS website.
• Hire a tax preparer.

Doing your own taxes

There are some advantages to using tax software. They include:

• Price: You may pay less for software than you would to hire a tax professional. The prices can vary depending on software brand, in-depth services, and complicated returns.
• Speed: If you have all your documents available, completing your own taxes may take less time than with a professional. The time may vary depending on the complexities of your return.
• Simplicity: If you invest in good software, it will walk you step by step through the process quickly and easily.

Consider using tax software if:

• You have time and patience to prepare your tax return.
• You have a straightforward tax situation with few deductions or other financial factors such as charitable contributions or retirement accounts.
• You feel comfortable filling out business-related tax forms if you own a business or are self-employed.
• You feel comfortable filing your own taxes.

Hiring a tax professional

There are some benefits to hiring an accountant. They include:

• Better software: Accountants may have more sophisticated software that can organize your data and forms correctly.
• Human touch: Developing a relationship with an accountant can help with understanding your financial situation and goals. They can provide you advice on ways to save for your child’s education, for instance.
• Year-round questions answered: An accountant can answer any questions you have during the year, not just during your annual tax preparation consultation.
• Saving you time: Depending on how complicated your tax situation is, an accountant will save you time and stress. They are familiar with the tax system, so they can quickly answer any issues that arise with your taxes.

Consider using a professional if:

• You don’t have time and patience to prepare your own return.
• You have a complicated tax situation with several deductions including dependents and freelancing.
• You plan to itemize your deductions such as your medical costs, mortgage, and donations.
• You had a major life change such as buying a house or getting married.
• You don’t feel comfortable with filing it yourself.

If you decide to hire a tax accountant, prices can vary for their services. Make sure to shop around for the best professional to take care of your taxes.

The information in this article was obtained from various sources not associated with Adirondack Bank. While we believe it to be reliable and accurate, we do not warrant the accuracy or reliability of the information. Adirondack Bank is not responsible for, and does not endorse or approve, either implicitly or explicitly, the information provided or the content of any third-party sites that might be hyperlinked from this page. The information is not intended to replace manuals, instructions or information provided by a manufacturer or the advice of a qualified professional, or to affect coverage under any applicable insurance policy. These suggestions are not a complete list of every loss control measure. Adirondack Bank makes no guarantees of results from use of this information.