Once upon a time, thinking about filing your tax reports by yourself made you cringe. However, with the development of tax software programs, and online guides, filing your own taxes has become less complicated (and thus less cringe-worthy).
But should you stick to hiring tax preparers employed by companies offering professional tax services in Orlando? Or should you take your chances and go through the entire procedure yourself? Before you make your decision, it is best to know the advantages and disadvantages of both the options.
Advantages of Filing Taxes by Yourself
Increase in Tax Knowledge
To file your own taxes, you need to read up on the procedure and IRS laws and regulations. This increases your knowledge about taxes and makes you understand your financial situation better. For example, filing your own taxes will help you understand why your tax return is a particular amount, allowing you to come up with ways of trying to reduce it next year.
Opting for tax services wouldn’t give you this advantage.
Saves Cost of Hiring a Professional Tax Preparer
While enrolled agents do not cost too much, tax preparers from companies offering tax services in Orlando can cost more. Filing your taxes yourself will save you this cost.
Disadvantages of Filing Taxes Yourself
It’s Easy to be confused with complicated tax laws
US tax laws are complicated and without extensive knowledge and continuous revision of information. It is possible for anyone to make serious mistakes. This can result in IRS audits and even court procedures.
Increased Chances for Errors
You are not a professional tax preparer and therefore, there are chances that you will make mistakes in the information that you provide on the form. As stated above, mistakes can come with serious consequences.
Online Software Can’t Understand Your Situation
Online tax software can help you file your own taxes, but it won’t understand your financial situation and background. Therefore, if you get stuck somewhere in the middle, you won’t be getting any help online.
Advantages of Professional Tax Preparers
A Professional is Aware of Tax Laws
A professional tax service representative has the appropriate education and training to prepare tax reports properly. They are also aware of any changes in IRS’s laws, therefore, there are lesser chances of them making mistakes.
Perhaps the most important advantage of hiring professional tax preparers is that you don’t have to worry about doing the task yourself. Tax forms are lengthy, and filing them takes a long time. Hiring a professional tax preparer will save you a lot of time, which you can use for other productive tasks.
Most companies that offer tax services in Orlando also offer their customers tax related advice. For example, you may qualify for both a credit and a grant, or how they can reduce their returns the following year.
Disadvantages of Hiring Professional Tax Preparers
This is the most significant disadvantage of hiring professional tax preparers. The more reputed a tax service company is, the more costly its services will be.
Some people are uncomfortable with letting someone else, even if that someone else is a tax preparer in on their financial status and information.
At the end of the day, your taxes are your personal responsibility, and how you file them is completely your call. Just remember the deadline for filing taxes this season!