Taxes: DIY or Hire a Professional?

Are you struggling with that ever-so-common question at this time of year: When will the sun come out again so I can play golf? Not that question. This one: Should I do my taxes myself or hire a professional? This is a very important question because the consequences of your choice can be significant.

Do Your Own Taxes?

DIY-ers are into doing everything themselves.  And they also know, not all of their projects turn out quite the way they intended. Of course, there is nothing wrong with trying to tackle things on your own, but when it comes to taxes, especially for high-net-worth individuals, it almost always pays to hire a professional.

Hire a Professional ?

In fact, the majority of taxpayers do use some kind of professional tax assistance.  Although 86 percent of all 2016 returns were filed with some form of tax software, most of those were actually filled out by tax professionals with a total of 79 million returns.  This number is continuing to grow, particularly with IRS free software available and encouragement to E-file.[i]

Which is Best for Me?

If you are still undecided, here are some questions you can ask yourself to help clear the picture:

  • How much would you be willing to spend to hire a tax professional?
  • How much time do you have to spend doing your own taxes?
  • How unique or complicated is your personal tax situation?
  • Are you prepared to deal with the IRS should something go wrong?

In a Nutshell

Each of the above questions is important to consider. If you don’t want to spend a lot of time on taxes, your situation is overly complicated, or you wouldn’t want to deal with the IRS, then paying to have a professional do your taxes is well worth the expense.

 

We hope you found this article about DIY tax preparation helpful.  If you have questions or need expert tax or family office advice that’s refreshingly objective (we never sell investments), please contact us at Info@GROCO.com or visit www.GROCO.com. Unfortunately, we no longer give advice to other tax professionals gratis.

Original article referenced: http://www.usatoday.com/story/money/personalfinance/2017/02/06/should-you-do-your-taxes-yourself-hire-tax-preparer/97198816/

[i] https://www.irs.gov/pub/irs-utl/oc-e-file.pdf

 

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