With the numerous tax preparation software products currently available, is it truly beneficial to hire a CPA or professional tax preparer to complete your taxes when you could do them yourself?
Unfortunately, there is no definitive answer to this question. Instead, you should examine your personal situation and needs. If you are motivated, capable and have plenty of time, self preparation of your taxes may be the way to go. Taxpayers who file a simple 1040 with few credits or deductions usually find it relatively easy to interpret the forms.
Conversely, taxpayers with intricate returns may be overwhelmed by constantly changing tax laws and complicated deductions. Complex returns usually involve items such as rental real estate, many investments or numerous Schedule K-1s. The calculations surrounding earned income credits and the new investment tax (Form 8960) have also served to make self-preparation more difficult.
As a general rule, if you are not … Read More