Why Not do Your Own Taxes?
Many American taxpayers opt to do their own taxes every year, and in general there is nothing wrong with this if you have a very simple tax situation and usually use a Form 1040EZ to file your annual return. However, this can be more problematic for people with more complicated tax situations. Using modern tax preparation software, like Turbo Tax, can make doing your own taxes easier, but there is still a good likelihood that you will overlook things that a professional would not. This is especially true for people with multiple income streams, investments, deductible expenses and other factors. People with a more complex tax situation usually have more discretionary income, so using a bit of it to hire a tax professional can be a good decision.
Every year there are regular changes to the tax code, with some benefits being added, others being removed, and assorted limits being raised and lowered. This has been especially true in recent years with all the assorted stimulus measures meant to mitigate the economic downturn and stimulate consumer spending. While a software package may keep track of changing limits and the like, many of the new benefits that have been introduced require the taxpayer to specifically ask for them and fill out special forms that may or may not be mentioned in the software package. In cases such as these, having Rg Brenner tax expert who is current with all the new deductions and incentives can save real money.
Another benefit to hiring a professional is avoiding mistakes. The Internal Revenue Service (IRS) has a well deserved reputation for treating mistakes and errors as offenses and penalizing taxpayers for them. In general, mistakes are treated as deliberate by the IRS and the penalties and interest associated with punishing these mistakes can be costly. Having a professional available, one who has an intimate understanding of what is intended and how the process works, can end up saving the taxpayer not only money, but a lot of stress stemming from accidental errors, omissions, or misinterpretations of the instructions.