When to Work with a Tax Professional

Can you believe we’re already in the middle of tax season? Tax Day will be here before we know it, so it’s time to get prepared! While it might not be the most exciting time of year, tackling your taxes doesn’t have to be a hassle.

We all know that filing taxes can feel overwhelming, but it’s important to get it done. With tax season winding down, let’s chat about your options for filing.

Online tax software has come a long way and can be a great tool if you want to go it alone. But if you'd rather not handle it by yourself—totally understandable—you can team up with a tax professional. They’re here to help answer your questions and make the process a lot smoother. Choosing between a tax pro and doing it online really depends on your specific situation!

When It’s a Good Idea to File Online

While we always encourage seeking advice for big financial decisions, there are definitely times when using online software is the perfect fit. Here’s when you might want to go this route:

1. You have a simple tax situation.

   What does that look like? Here are a few signs:

   - You have just one or two sources of income, like a full-time job and a weekend gig.

   - You don’t have many investments outside of your retirement accounts.

   - You haven’t touched your retirement savings yet.

   - You plan to take the standard deduction.

   - You’re only making simple itemized deductions.

   If this sounds like you, filing with online software could be the way to go!

2. You didn’t experience many life changes this year.

   If your life this year looks a lot like last year with only a few minor changes—like buying a new home or getting married—you can probably handle filing on your own.

3. You feel comfortable filing on your own.

When It’s a Great Idea to Use a Tax Pro

Sometimes, taxes can get a bit more complex, and that’s when a tax professional can really shine. Here are some situations where reaching out to a tax pro is a smart move:

1. You have a more complicated tax situation.

   If your taxes involve lots of forms or paperwork beyond just a W-2 and a couple of 1099s, it’s definitely time to talk to a tax professional. Here are a few situations that might need their expertise:

   - You have a lot of taxable investments outside your retirement accounts.

   - You made a significant Roth conversion.

   - You own a rental property.

   - You owe taxes in different states.

   In these cases, spending a little to get a qualified expert’s help can be worth it. They can help you find deductions and credits you might not even know you qualify for!

2. You had major life changes this year.

   If you’ve gone through big changes like retiring, receiving an inheritance, or any other major life events, a tax pro can help you navigate those complexities.

3. You’re unsure about filing your taxes.

   Whether it’s your first time or you’re new to online software, it’s completely okay to seek help! Tax season can be daunting, so let a tax pro handle the heavy lifting while you relax, knowing your return is in good hands.

4. You want to save time.

   We all lead busy lives, and spending hours on tax software can eat up your weekend. If you’d rather spend your time doing something more enjoyable, gather your paperwork and let a tax expert handle it for you!

5. You own a business.

   If you need to file a separate business tax return or report income from your business on your personal return, that adds some complexity. A tax pro can help make this process easier and take care of any payroll and bookkeeping headaches for you.

There are plenty of reasons to think about working with a tax professional. Perhaps you’re trying to navigate how inflation impacts your taxes, or maybe you could file on your own but would rather not deal with the hassle. Find what works best for you! Sometimes, getting a little professional help is the best way to ensure everything is handled smoothly—and tax pros are here to make your life easier!