Are you struggling with that ever-so-common question at this time of year: When will the sun come out again so I can play golf? Not that question. This one: Should I do my taxes myself or hire a professional? This is a very important question because the consequences of your choice can be significant.
DIY-ers are into everything. Of course, there is nothing wrong with trying to tackle things on your own, but when it comes to taxes, especially for high-net-worth individuals, it almost always pays to hire a professional. In fact, the majority of taxpayers do use some kind of professional tax assistance. Last year, 86 percent of all returns were filed with some kind of tax software, but most of those were actually filled out by tax professionals: 79 million returns.
If you’re still undecided, then here are some questions you can ask yourself to help clear the picture:
- How much would you spend on a tax professional?
- How much time do you have to spend on your taxes?
- How unique or complicated is your personal tax situation?
- Are you prepared to deal with the IRS should something go wrong?
Each of these questions is important to consider. If you don’t want to spend a lot of time on taxes, your situation is overly complicated, or you wouldn’t want to deal with the IRS, then paying to have a professional do your taxes is well worth the expense.
The post Taxes: DIY or Hire a Professional? first appeared on Advisors to the Ultra-Affluent – Groco.