A variety of companies offer online tools promising to make tax preparation easy and painless, and for many taxpayers, these may be the best option. However, a tax professional offers a level of personal attention and expertise automated programs can’t match, potentially reducing your tax liability and helping avoid problems before they arise. Below are a few points to consider when deciding whether to prepare your own taxes or turn to a professional.

When You Should Prepare Your Own Taxes

For single taxpayers who take the standard deduction and only worked for one employer throughout the year, tax preparation may be relatively simple. Married couples may also be able to prepare their own taxes without trouble, if you each only have a single employer and don’t have any dependents, including children, seniors, or any other person you provide for. 

When It’s Best to Hire a Professional

Business owners, self-employed workers, and independent contractors often have deductible expenses and additional liabilities that can make tax preparation confusing and overwhelming. A professional has the expertise to identify every deduction and credit for which you qualify, calculate your tax obligations, and minimize the risk of an audit.

Professional assistance is also effective if you have an extensive portfolio of investments and assets, each of which might be subject to different tax rules. Investors with real estate holdings in multiple states can also help you navigate the complexities of paying taxes in different jurisdictions.

Families with children should consult a professional to ensure they receive all of the applicable credits. You should also talk to a tax preparer if you experienced any major life changes last year, such as a marriage, divorce, or the birth of a child. Knowing how these developments affect your tax liability will help you plan for the future.

For 25 years, Dianne M. Saunders, CPA has provided in-depth tax preparation services to families throughout the Litchfield, CT, area. Whether your finances are straightforward or highly complex, you can rely on their team for fast service and accurate results. Visit her website for more on their tax preparation services or call (860) 567-3022 to make an appointment today.