3 Reasons to Hire a Tax Pro During COVID-19

They say the only things you have to do are pay taxes and die.

You might be able to avoid one but it’s pretty clear you won’t avoid the other.

For the record, I am taking my vitamins, mom, and still … they may slow aging down, but eventually, this game will end.

While YOU’RE still in the game, here are some links so you can determine IF you have to file and if so, what and when you have to file:

• Self-employed and small businesses #1 (IRS)
• Self-employed and small businesses #2 (IRS)
• Finance and taxes for small businesses (Houston Chronicle)
• Individuals: who needs to file (IRS)
• Information for Individuals (IRS)

And if you prefer to see and hear your information, the IRS has lots of helpful videos on YouTube. I know, right?

Either way, the links above will get you to the right place and then you can download and print the tax forms you need. 

Then, tweet yourself a pat on the back: #iamorganized  #taxes #taxesdon’tscareme

Over the next few weeks, we’ll focus on the nuts and bolts of pulling together all the information you need to file your returns on time.

Once your papers are sorted, it’s time to fill out and complete the tax forms or send your materials to your accountant.

IF your papers are not sorted, please read this article on HOW to organize your papers ... then come back and read this one!

Then, the next question to ask yourself is: 

Do I want to prepare my own taxes OR do I want to use a tax professional?

When answering this question, here are some key points to consider.

WHAT IS YOUR TIME WORTH?

Most people need between 16-23 hours to prepare and file their tax returns.

Are you often frustrated filling out forms?

Do you sometimes miss rebates because you forget or it seems too burdensome to go online and fill out the form?

Know thyself.

Depending on what your time is worth to you and your tolerance for paperwork, it might make more sense to trade some of your time for money doing something else and then pay a professional so you can reduce your stress and avoid late filing penalties and interest.

NOTE: I decided many years ago that I would rather work another hour or two doing something I love and pay a tax pro to do something I don't love but still have to complete.

DO YOU LIKE TO LEARN BY DOING?

For some, filling out and filing a tax return is educational.

The process helps them focus on their finances and they learn new things about where they are really spending their money and can then use that info to make better choices in the future.

Is this something that you would find valuable?

Or would you prefer to get a report from a bookkeeper so you can review the results of the work without having to do the work yourself?

It’s probably NOT a good idea to do neither and just bury your head in the sand and ignore where your money is going.

NOTE: It isn't only "poor" people who need to keep a budget for their finances. 

I just helped an independently wealthy client put together a comprehensive budget to ensure that she can continue to live within her means.

ARE YOU A RESEARCH JUNKIE?

An article in Forbes says that “Since 2001, Congress has made nearly 5,000 changes to the Tax Code: that’s more than one change per day."

While the IRS does a decent job of maintaining an informative website and helpful YouTube videos, filing your taxes still requires a lot of attention and understanding.

Does this play to your strengths?

If you love research but don't love finishing things, think twice before you start chasing this particular windmill.

Consider this reminder from the Houston Chronicle Small Business section, 

“An error on your return can delay any refund due to you. If you err and the mistake results in tax liability, interest and fines accrue from the date you filed the taxes.”

Here are a few more articles that contain some useful information to help you make the smartest choice for you:

Forbes

Lifehacker

Houston Chronicle

THE BOTTOM LINE

If you decide to DIY, there is a wide range of e-solutions that claim to make the process easier.

And remember that you can file for FREE via the IRS—see Filing Your Taxes at the IRS website.

Other helpful links include:

Free File (suits those with incomes under $60,000)

E-file with Commercial Software

Authorized IRS E-file Provider (for individuals)

Some folks shy away from professional tax preparers—they fear that things will go wrong and they'll end up in trouble or being taken advantage of by the preparer.

While this can happen, it is rare. And using a reputable pro who stands behind her work AND will sign your returns reduces this risk to negligible.

And should something go wrong, individuals do have redress via the IRS—this IRS webpage explains when and how to report misconduct by a preparer.

TODAY’S ACTION

Which did you decide and why? DIY or hire a professional? Help our community by sharing your decision and reasons on our FB page.

AND, while the US government has given us some breathing room right now due to COVID-19, you might enjoy this article so tax preparation doesn’t sneak up and bite you come July: 

How To Approach Your Taxes Like A Recipe    Also, if you’re stuck at home right now and going crazy with the clutter and the noise, please join us starting on April 13 for our 5-Day De-Stress Your Mess Challenge. Your home will never look or FEEL the same way again!