Many people doing their taxes in the U.S. find that they can complete them themselves, either by manually going through the paperwork or using one of the free online options through the IRS. However, some people find that their taxes are too complicated for them to handle alone. If you are wondering if you are one of these people, here are three tell-tale signs that you need to hire a tax preparation service.
1. If You're Self-Employed
Taxes for freelance workers and the self-employed can be incredibly complicated, and there are several forms involved for calculating what percentage of your income is taxable and at what rate. You will need to pay the self-employed tax rate and the tax rate for the income you earned. This can be difficult if your proof of payment is scattered between many different 1099-MISC forms, even assuming every client who paid you sent a form along those lines. Additionally, it can be hard to figure out what expenses count as deductions to your overall taxable income. If you're self-employed, you will most likely benefit from hiring a tax preparation service.
2. If You're a Landlord
Taxes for those that rent out their property to others can be complicated as well, especially if you have more than one tenant or multiple sources of income. There are different ways that landlords can report their revenue and times that they need to that can be confusing for anyone, especially less-experienced landlords. Plus, there are dozens of different tax deductions available for landlords that you may have trouble finding or properly filing. Overall, if you're a landlord, you may benefit from bringing your information to a tax preparation service.
3. If You Need to Save Time and Energy
Even if you are not self-employed or a landlord, you may find that filing your taxes yourself takes too much time and energy for it to be worth it. This is especially true if your taxes are complicated for other reasons, such as with dividend income. Plus, if you don't understand how to do your taxes then you may make a mistake with severe financial consequences beyond owing more than you thought, such as fines. Even if you understand tax filing and have fairly simple taxes to file, you can still benefit from hiring a professional as they do all the work for you.
There are many times that you may find you need to hire someone to do your taxes for you. If you are self-employed, a landlord, or find that taxes are too time-consuming for you to handle alone, call a tax service today.
