Should You Pay to Get Your Taxes Done?
Doing your taxes can be a stressful yearly activity. If you work, you might have to file your taxes (with some exceptions). The stress of doing your taxes is an undeniable part of the process! However, deciding to pay money to have someone else do it for you can sometimes replace the old stress with a new one. The question is, should you pay to get your taxes done?
The benefits of paying an outside party for tax services are well worth the cost if the taxpayer has a complex tax situation or is inexperienced in filing their taxes. This is because a professional can help the taxpayer to get the most out of their tax returns with a lower risk of error during the process, leading to a bigger payoff for the taxpayer in the end.
This article will cover the benefits of having someone do your taxes for you and some of the disadvantages. We will also cover the best resources for outside assistance in filing your taxes and even answer some frequently asked questions! So, let’s dive into the pros and cons of outside tax filing assistance without further ado!
Should You Pay to Get Your Taxes Done?
The Internal Revenue Service estimates that the average person takes four whole hours to finish calculating their tax situation and file for a tax return. This is not only a timely process, but it can be a stressful one as well. You could be in a world of legal trouble if you need to remember a deductible item or get something wrong while managing your taxes.
Therefore, some people resort to paying a professional to file their taxes. It is an easy decision; hand over your money and the headache to someone more qualified and wait for your tax return. However, is it the best course of action? Let us look at the pros and cons of paying to get your taxes done.
The Pros of Paying to Get Your Taxes Done
If you are the kind of person who values a stress-free tax experience enough to pay for it, you will be glad to take note of these benefits:
- Peace of Mind – As strange as it may sound, many of us is happy to admit that we would rather trust a professional with our finances than ourselves. Whether you use online tax preparation software or a professional individual, the help can give you a sense that your taxes k with less risk of error on your part.
- Faster – If math or keeping records is not one of your strong suits, you may already have experience with the grueling amount of time it can take to do your taxes. On the other hand, tax calculating software gives you a path to follow. All you need to do is enter the necessary information, and you will have a streamlined tax filing process.
- Uncomplicated – This benefit applies most if you own a business or experience a freelance work style. Either of these situations and many like them can cause your taxpaying situation to become more complex. Rather than try to itemize these deductibles yourself, a professional can handle it all quickly and easily.
- Maximum Benefits – Finally, the best thing about paying to have your taxes done by another person is that these experts know to get you tax savings, you may not even have been aware that you qualified for. In this way, you might even earn back the money you spent using the service in the first place.
There is no denying that paying to get your taxes done comes with one bottom-line benefit, and that is: ease! Whether you are filing for a complex business entity or as an individual, paying someone else to do your taxes means minimal effort from you.
There are instances where you can defer your tax payments until you receive your refund (if you are entitled to one). This could be most helpful if you cannot pay for tax preparation upfront. Whenever you receive your tax refund, the amount it would cost for your professional tax preparation will be deducted from the original sum. Please take this into account, as it can be beneficial.
The Cons of Paying to Get Your Taxes Done
Though the above-listed benefits are excellent, is paying to get your taxes done a perfect option? Let us look at the possible disadvantages below:
- Expenses – This is the first con to paying to get your taxes: the actual paying part! Many tax experts charge hundreds of dollars for their services. However, if you are financially tight, doing your taxes alone might be worth the hassle.
- Speaking With Experts May Cost More – If you decide to use an online tax filing service such as TurboTax or even HR Block, you should know that their services vary in cost. You will have to pay extra, sometimes upwards of $50, to speak with a live tax expert.
Who to Pay to Get Your Taxes Done
Now that you know the good and the bad when paying for someone else to do your taxes, you may have decided that an outside service is a way to go! If this is the case, but you need to know where to start, do not worry: we have prepared some available services you can investigate.
- Online Software – Many online programs were invented to help you file your taxes. Typically, all these services require is for you to input whatever information you have on your financial situation while they calculate the rest. In addition, some software options offer live feedback from professionals, though it may cost more.
- Public Accountants – Accountants who work for the public have many skills, including offering financial advice with strategy recommendations and filing taxes for those who pay them to do it. They offer advice all year round on how to save money the next time taxes are due and are also a paid service that charges by the hour.
- Attorneys – Attorneys may not be the first thing you think of when it comes to taxes. They usually know how tax filing works, the best ways to save their client money, and how to challenge the rulings of the IRS in court if something goes wrong. These are often more costly than the other options, though.
Frequently Asked Questions
Even knowing the pros of paying someone to file your taxes as well as the cons and with an understanding of how to pay to get your taxes done, there is still a chance you have more questions. We have prepared the answers to some of the most frequently asked questions on this topic. Look below to find out more!
How much should it cost to have someone do your taxes?
According to the accountant experts at Ageras.com, the modern tax professional able to file your taxes for you can charge as little as $200 or as much as $600 on average. This is all based on outside factors unique to the taxpaying individual, such as where the taxpayer lives, their specific tax situation, and how the professional decides to charge for their services.
The best way to measure tax professionals’ prices is to shop around, checking with the firms in your area and online to get a pricing quote for your specific situation. This way, you can be well-informed and find the option that works best for you.
Should I do my taxes?
Though the benefits of asking someone else to do your taxes are undeniable, there are some advantages to filing your taxes yourself. One of the primary reasons to file taxes on your own is that it may be cheaper. In addition, you do not have to reach into your wallet to pay for a service, however professional it may be.
Another reason to do your taxes is that the process is getting more accessible thanks to the free services and apps to help you calculate your tax situation. In addition, you don’t even have to make an itemized tax deduction, which requires more effort to calculate since the Tax Cuts and Jobs Act of 2018 causes standard deductions to offer most people more in terms of their return.
The decision to do your taxes is up to how comfortable the taxpayer is with the knowledge and care it takes to do them correctly! Hiring a professional is worth every cent if you prefer to avoid stress.
Do you pay upfront to get your taxes done?
Suppose you decide to use professional help in filing your taxes. In that case, it is very natural to wonder whether the professional or service will require payment before completing the job. What if the service is difficult to understand or is not the most beneficial to you?
Luckily, most tax-calculating professionals do not ask for payment upfront. Instead, they prepare a statement for you and require payment and a signature afterward. With this payment, you will be able to get your tax return based on the service performed by the professional.
There are advantages to hiring a professional for filing your taxes. Not only can experience grant you peace of mind if you do not have the skills to avoid mistakes, but you may even save more money thanks to tax preparers’ knowledge of being professionals.
Hiring a professional to file taxes is not a perfect solution. If you are filing for a simple tax return, you may know your own situation best and can calculate it with no additional cost to yourself. Even online tax filing systems charge extra for services that are often necessary, like professional consulting.
Whether you decide to hand your tax filing responsibility over to a more expensive professional like an attorney, file your taxes on your own, or go halfway and use an online calculating service is entirely up to your discretion. However, the benefits of paying to get your taxes done are undeniable; it is all a matter of how much peace of mind is worth to you!
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