Every year, people across the United States have to consider whether they will do their taxes themselves or reach out to a professional tax preparer. While it is true that it typically costs less money up front to do your taxes yourself, there are plenty of reasons why having a professional do your taxes for you is advantageous.
Here are a few reasons why you should seek professional assistance when preparing your taxes.
You don’t have to worry about understanding all the paperwork
If you own real estate, have retirement and health savings accounts and have made a big purchase in the last year, your tax return can quickly become quite complicated. Individuals and small business owners alike need to make sure they compile all the proper documentation and fill out all the correct forms in a thorough and accurate manner.
Working with a professional makes this task a whole lot easier. With every form you need to file, your return becomes more complicated. Tax professionals have so much experience in collecting and filing tax paperwork that it is nowhere near the same burden for them as it is for people without professional tax preparation experience.
You don’t have to worry about mistakes in your taxes
According to the Internal Revenue Service (IRS), the most common mistakes that appear in people’s tax errors are computation errors when trying to figure out taxable income, entering items in the wrong field and other simple math errors. Any error you make in your tax paperwork can delay your refund.
While tax professionals cannot guarantee perfection, the chances of errors occurring in paperwork prepared by a professional are significantly lower than the chances of errors occurring in paperwork prepared by an individual filer. No errors means no liability for fines or interest.
You’ll benefit from more savings opportunities
While it can cost more up front to have a professional prepare your taxes, a professional is also going to have a much better grasp on the kinds of deductions and tax credits you qualify for, which can save you more money in the long run. In some cases, you might be eligible for two conflicting credits or deductions, and your tax professional will be able to make an informed decision as to which deduction is best for you situation.
These savings add up. Simply put, it pays to work with an experienced tax preparer.
You’ll avoid any potential negative consequences
Your signature on your tax paperwork acts as an official endorsement that all information included in that paperwork is completely accurate to the best of your knowledge. If the IRS decides to perform an audit and finds mistakes in your paperwork, you could potentially face some stiff penalties. Having a professional do your tax return for you protects you from possible liability. You should still always double check your return yourself before signing it to make sure the numbers are accurate, but the chances of you being exposed to potential liability are drastically lower when working with an experienced preparer.
Still looking for help in preparing your taxes for 2018? Contact us today at MCG Solutions to learn more about how our services can benefit you.