Taxes, Lawyers, Business & Debt
When To Hire Tax Help
Most people are looking to save money these days, and some are cutting costs by deciding to do their own taxes. There are plenty of ways to do it yourself; choose from TurboTax, Jackson Hewitt Online, CompleteTax and H&R Block at Home. The IRS is stepping in to prevent paid tax preparers from cheating their customers, even as the tax code is getting more complex (now at almost fourteen thousand pages!). The IRS has been filing more tax liens against those that have almost nothing to give, and they have also been auditing middle-class citizens at a higher rate- meaning that you have a much higher chance of getting out unscathed if you have professional help.
If you are unsure of whether your situation merits the extra assistance, the following tips may help. If you don't want to invest the time in doing your own taxes, you should pay someone to do them for you. You should also seek tax help if you find the questions asked by DIY software too complex. Berdon tax partner Saul Brenner offered a list of circumstances under which most people should seek assistance, as opposed to going the DIY route. He says that if your taxes aren't complex (such as if you have just a W2 form and a single interest account) you should be able to do them yourself. However, if you fall into one of the below situations, you may want to hire a professional.
- If you're self employed
- If you engage in securities trading
- If you're part of a hedge fund or a private equity fund (limited partnership)
- If you own a trust fund
- If you're going through retirement or divorce
- If you're filing in more than one city or state
- If you have a lot of money in an individual retirement account and are unsure of how the new IRA rules affect your case
There are plenty of other articles available on line that offer situations where professional tax help would be warranted, such as income from rentals or short sales.