Should You File Your Taxes Yourself or Hire a Professional? Here’s What You Need to Know

When Should You DIY Your Taxes?

If your financial situation is straightforward—like having a regular job with a W-2 form, a few bank accounts, and maybe some freelance work or small side income—doing your taxes yourself might be the easiest and most affordable option. Especially if you’re planning to take the standard deduction, which lowers your taxable income without the hassle of itemizing.

For 2023, the standard deduction is:

• $14,600 for single filers
• $20,800 for heads of household
• $29,200 for married couples filing jointly

If you don’t have many deductions or life changes, you can use tax software or even free forms on the IRS website to file your taxes. If you’re eligible for the IRS free filing programs (for lower-income individuals, seniors, or those with disabilities), even better! It’s quick, easy, and free.

Plus, if you get stuck, tools like ChatGPT can help answer basic questions or guide you through definitions. Just make sure to double-check the answers to ensure accuracy.

When Should You Hire a Pro?

While doing your taxes yourself can save money, it’s not always the best option if your situation is complicated. If you’ve had any major life changes—like getting married, having a baby, buying a home, or experiencing a health issue—hiring a tax pro could make sense. The same goes if you receive income from multiple sources, like freelance work, investments, or a side business.

A tax professional is also a good idea if you have complex deductions, like medical expenses or losses from investments, or if you’re navigating a new tax law. Tax laws are constantly changing (the tax code is about 70,000 pages long!), and keeping up can be overwhelming. A professional is trained to handle all the details and can help you avoid missing deductions or credits that could save you money.

Think of it like this: You can try cutting your own hair, but you might end up with a mess. A pro ensures everything is done right, helping you avoid mistakes that could lead to problems down the road.

How to Choose a Tax Professional?

If you decide to hire a professional, picking the right one is key. Here are some tips:

• Check credentials: Look for a Certified Public Accountant (CPA), enrolled agent, or tax attorney. You can also search the IRS directory for qualified professionals.
• Do your research: Ask about their reputation and check if they have any disciplinary actions against them. The Better Business Bureau is a good place to start.
• Know the fees: Be cautious of preparers who charge based on your refund size or promise unusually large refunds. A flat fee is more common and safer.
• Be involved: A good tax preparer will ask to see all your documents and receipts. They should explain the process to you and answer your questions.
• Never sign a blank form: Always double-check your return before signing it. The preparer should also sign and include their Preparer Tax Identification Number (PTIN).

So, Should You DIY or Hire a Pro?

Ultimately, whether to do your taxes yourself or hire a professional depends on how complicated your finances are. If your situation is simple, DIY could be a quick and cost-effective solution. But if you’ve had major life changes or your taxes are more complex, a professional can help make sure you’re getting the most out of your tax return and avoid mistakes that could lead to an audit.

Don’t stress—whether you go solo or hire an expert, just make sure you feel confident in your choice. Taxes don’t have to be complicated if you know the right steps to take!