Do you Need a Tax Preparer?

Last updated on February 17, 2023

Not everyone who files taxes requires the services of a tax preparer. Many taxpayers comfortably prepare taxes themselves. If you understand your tax obligations, you have the time, and you are good at calculations, you might want to prepare your taxes yourself. Generally, taxpayers hire a tax preparer to handle their taxes because they are not aware of the tax laws regarding their particular situation, or if they are too busy to spend the time and the effort to prepare their return.

Businesses, even small businesses, typically hire a preparer because of the complexity of business tax return preparation. They usually can afford to hire a tax prep professional, while they don’t have time to prepare the tax return themselves.

You need a tax preparer if you have little or no knowledge of taxes, or if you simply prefer to exchange time for money. Many taxpayers use tax preparation software to prepare their returns. Even though software can help by giving you basic information, it is essential that you are aware of the significant credits and the deductions that can bring down your tax bill.

Choosing to hire a tax preparer or doing taxes yourself depends on the choice between spending your own time and effort, and hiring somebody else to put in the time and the effort. Personal situations are always changing, and many taxpayers switch from hiring help to preparing taxes themselves, and vice versa.