How do I know when it’s time to hire someone to do my taxes for me?
Each month, Andy’s answering a question that he wishes more clients would ask him, addressing timely topics that he thinks are worthy of the spotlight.
How do I know when it’s time to hire someone to do my taxes for me?
This may surprise you coming from me, but most people can DIY their taxes. These days, tax preparation is a pretty simple task that can be completed in under an hour.
Often people who bought a house or had a baby believe they must engage a professional. Realistically, these life changes don’t create major complications for filing your return. If you’re not itemizing your return, it’s a plug-in and crank-out process these days.
That doesn’t mean that everyone should take on the task themselves.
Here are my top 6 reasons to hire someone to file your tax returns:
If you’re a business owner and you’re not confident you’re capturing all your deductions
If you’re a business owner and you’ve had a change in status to your business
If you were hit with huge refunds or huge amounts due the prior year
If you work in multiple states
If the idea of filing your taxes will ruin multiple Saturdays for you
If you don’t want to do your own taxes and you can afford to hire an expert
Many people think they need a tax preparer when in reality they need a tax planner. Unfortunately, now is not the time to solicit a professional for tax strategy advice. Not only are they drowning in W2s and 1099s, but they’re also unlikely to provide much advice that will change your reality for the current tax filing season.
You don’t need someone to fill out boxes for you. You need someone to create a model for financial organization that optimizes your finances for tax purposes. You need infrastructure for your finances.
When’s the right time to engage in a tax strategist? Summer! Don’t worry. I’ve already slated a July reminder for you. Stay tuned. And in the meantime, happy filing!