Do you know when to hire someone to do your taxes? With so many software programs out there that help you file your own taxes, it can be tempting to simply do them yourself. In many cases, that is a perfectly fine choice to make. However, in some situations, it can be pretty risky.

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When to Hire Someone To Do Your Taxes

When should you hire a professional to do your taxes for you? There are many variables that can make this the best decision. Below are just a few variables that indicate your best choice is to hire a professional this tax season.

You Earn More than $200,000 a Year

Why? Your likelihood of being audited significantly increases as your wealth increases. In this case, you have a 3% increase in likelihood that you will be audited than those making under $200,000 a year. When being audited, it is much better that you be able to turn to a professional accountant than you need to represent yourself against the IRS.

You Have Material Foreign Source Income

This could mean personal or business property in other countries. However, the most common material foreign source income is stocks in foreign companies. If you own any stocks at all, you should research the origin of each company to determine if it is foreign held; you might be surprised by which ones are.

You Own a Business or are Self-Employed

In both of these cases, tax law gets very complicated. In addition to making sure you are filing within legal parameters, a tax accountant can make sure you are getting the full benefits you are eligible to receive, many of which you probably don’t know about.

You Have Established Trusts for Children or Grandchildren

There are a lot of tax laws to navigate when it comes to trusts. Doing it on your own risks getting it wrong and losing plenty of money. If you have a trust, it is best to put your taxes in the hand of a professional tax accountant

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January 11, 2016

When to Hire Someone To Do Your Taxes

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