Tax season rolls around, and suddenly your coffee intake triples, your receipts are everywhere, and your laptop has five tabs open to tax help articles. Sound familiar? You’re not alone. Every year, millions face the same decision: should I file my taxes myself or pay a pro to handle it?
Let’s break it down for you by showing you three tips to help you in making this decision.
When Doing It Yourself Makes Sense
If your financial life is simple (think W-2 job, no investments, no side hustle), using tax preparation software can be enough. These tools walk you through everything, often with a clear checklist and prompts. You can even file for free if your income qualifies. Over 60 million people filed their taxes on their own in 2023, and many used free file options available through the IRS website.
Filing solo saves money. It also gives you a better understanding of where your cash goes and what you might owe or get back next year. Plus, if you enjoy learning how stuff works or just want that “I did it myself” feeling, it’s doable. But if your financial situation is a little more complicated, doing your taxes yourself can get risky.
When It’s Worth Hiring a Pro
Own a business? Work freelance? Have rental income, stock trades, or big life changes like marriage or a move across state lines? That’s when a tax professional can make a lot more sense for you.
Pros can spot deductions you’d never think of. They know the tax laws and keep track of how they change, which happens regularly. And when you’re working with a CPA or enrolled agent, you could also save more in taxes than their fee costs, especially if you’re self-employed or dealing with major life shifts.
And then there’s peace of mind. Nobody wants to deal with an audit, but if it happens, having someone who knows your return inside-out is a huge comfort.
How To Know What’s Best for You
If you’re trying to determine what’s going to be best for you, it can help to ask yourself a few questions. Is my return straightforward? Do I feel confident using tax software? Do I have time to dig in and get it right?
If you’re hesitating, or if tax time feels like trying to solve a Rubik’s cube in the dark, talk to a pro. Even a one-time consult can help. And even if you get started on your own but quickly find that you’re in over your head, bringing in help at any point is possible.
There’s no shame in either route, whether you decide to DIY or call in the cavalry. Just be honest about your comfort level and the complexity of your finances. Sometimes, spending a little now saves a whole lot later.
