Lots of people wonder if they’re capable of filing their own taxes, however, not using an accountant or CPA firm could cause you to leave money on the table. No one, we repeat, no one wants to pay a higher tax rate than what’s required by law. For this post we wanted to discuss some of the benefits of hiring a professional to prepare your return.
The tax code is complicated
Not only is the tax code complicated, it undergoes numerous changes every year. Keeping up with each individual change (and understanding how and if each change might impact your return) is a lot to keep up with if you’re not an accountant or CPA. Working with a professional will ensure that an expert, who is up to date on the latest changes, is handling your return with care.
Preparing a tax return takes a lot of time
The Internal Revenue Service (IRS) estimates that it takes roughly 20 hours to complete the average tax return. If you make mistakes (and receive notification that you’ll need to file an amended return), that will take even longer. Tax professionals not only understand how to do the job right, they understand how to prepare your return efficiently.
Making mistakes can cost you time and money
People who file their own tax returns often make mistakes, such as entering data in the wrong spot, transposing their Social Security Number, entering the wrong filing status, and forgetting to add all of their income. They’re also prone to missing deductions or making errors that can trigger an IRS audit. Working with a professional will ensure that your returns are error-free and prepared correctly.
Understanding deductions can be difficult
Several years ago, a client told us a story about friends who filed their own returns for many years. Yet in 2018, when they did their return and discovered they’d owe the IRS close to $18,000, they decided to work with a professional. Once their CPA was done with the return, not only did they learn they didn’t owe any money, they learned they were due a nearly $7,000 refund from the year before. Working with a professional will help ensure you get every deduction you’re entitled to.
Are you interested in learning more about the benefits of having a CPA prepare your tax returns? Call the office of Hughes, Snell & Co., PA today to schedule a complimentary consultation.