Tax season is a stressful time of the year for many people. Tax law is complex and ever-changing, so even the savviest business professionals often struggle to handle their taxes independently.
So, should you hire a tax professional or do your taxes yourself this year?
There are pros and cons on both sides of this debate. For example, the benefits of outsourcing your tax prep include avoiding errors and maximizing deductions. However, you can expect to pay hundreds of dollars for high-quality tax prep services and spend time finding a trustworthy preparer.
The tax pros at Western Shamrock offer a balanced look at what tax preparers do and tax preparation service prices to guide your decision.
Pros of Hiring a Tax Professional
What is a tax provider benefit, and why do people hire tax professionals?
Here are some of the biggest reasons you might hire someone to do your taxes this year.
1. Maximizing Deductions and Credits
Skilled tax professionals are experts at uncovering deductions and credits you may have overlooked. The potential savings may outweigh the cost of hiring a professional because of how significant those tax deductions and credits may be.
2. Time Savings
Hiring someone to do your taxes will save you substantial time and effort. Filing taxes for an individual can take approximately 20 hours. If you hire a professional, you’ll free up more time for family, work, or personal activities.
3. Expert Knowledge of Tax Laws
Among the pros of hiring a tax professional is ensuring compliance with tax laws and preventing costly mistakes. Tax codes are notorious for changing frequently. Professionals who work in this field stay updated on new regulations, so you don’t have to.
4. Avoiding Costly Errors
You can incur expensive penalties and fees if you file your taxes incorrectly. Inaccurate filings can also trigger audits and result in lost refunds. A tax professional can help you accurately and completely file your taxes with no errors.
5. Peace of Mind & Reduced Stress
Hiring a professional means no more second-guessing your deductions or worrying about audits. You’ll reduce stress and gain peace of mind knowing your taxes were handled properly.
6. IRS Audit Support
In the event of an audit, a tax professional can represent you and help you navigate IRS inquiries. They will ensure you have the right documentation and responses to get through an audit.
7. Year-Round Tax Planning & Financial Advice
What does a tax preparer do? Beyond just tax season, tax professionals can help you throughout the year and offer strategies to lower your tax liability. This is a significant advantage for business owners and people who are self-employed.
8. Reviewing Past Returns for Missed Savings
Is it worth paying someone to do your taxes? Maybe, because professionals can check prior filings to uncover previously unclaimed deductions. Fortunately, it is possible to amend past tax returns to get money back.
9. Hassle-Free E-Filing & Compliance
Another one of the pros of hiring a tax professional is an easy e-filing process. Tax pros specialize in accurate and timely electronic filing. On your own, you may make e-filing mistakes that delay your refund.
Cons of Hiring a Tax Professional
However, there are also cons of hiring a tax professional to consider. Below we’ll cover some common reasons why people choose to file their own taxes.
1. Cost of Services
How much does tax prep cost? Cost is often a prohibitive factor when weighing the pros and cons of hiring a tax professional.
Tax preparation services prices often range from $200 to $500 or more, depending on how complex a person’s financial situation is. Hiring a pro may not be worth it if you have a simple return.
2. Not All Preparers Are Equal
It’s important to realize that some “professional” tax preparers lack the credentials or expertise to do your taxes. Before hiring someone, check their PTIN, CPA, or EA credentials.
Western Shamrock’s tax professionals are certified, qualified, and experienced with filing taxes for people in all types of financial situations.
3. Potential for Scams or Errors
Beyond considering how much does tax prep cost, there is a risk of unscrupulous tax preparers overcharging for their services or submitting fraudulent claims. Always review your tax return prepared by someone else before signing.
4. Loss of Direct Control Over Your Return
Another one of the cons of hiring a tax professional is having to rely on someone else’s interpretation of your finances. Ensure you trust your tax preparer, communicate the essential details, and provide complete records for review.
5. Finding a Trustworthy Professional Can Take Time
Unless you have a word-of-mouth recommendation, finding the right fit in a tax professional can take time. Research and compare multiple options and understand their additional services, such as audit support and year-round advice.
Western Shamrock is a reliable tax preparer that guarantees your filing is accurate and that you receive the largest possible refund.
How to Choose the Right Tax Professional
Are you still weighing the pros and cons of hiring a tax professional? Here are some tips for choosing the right person for the job:
- Verify the Preparer Tax Identification Number (PTIN)
- Verify qualifications, such as CPA, enrolled agent, or tax attorney
- Inquire about their knowledge of new tax law changes
- Choose a pro that provides e-filing and IRS audit support
- Compare prices and understand the fee structure upfront
Our Tax Prep Services
Although there are various considerations to keep in mind, there are many pros of hiring a tax professional rather than using DIY software. Western Shamrock is pleased to offer tax prep services at our many branches.
To discuss your tax needs and schedule an appointment, please contact a branch near you.
