Should I prepare my own taxes or hire an accountant?

With the advent of do-it-yourself tax websites, people frequently ask me “why pay for an accountant when I can prepare my taxes myself?”  I love when people ask that question because it shows that you’re thinking about saving money.  However, the reality is that tax laws are so complicated, even filing a simple return can be confusing.  If you miss one tax credit, for example the child tax credit, it could cost you $1,000. 

I think of my clients as partners.  People work hard for their money, and I love using my expertise to help them keep more of what they earn.  Often times I’ll meet with a new client who just purchased a home or started a business and is using an accountant for the first time.  When I review the tax returns that they prepared themselves in previous years, I’ll frequently find errors or omissions.  In many cases we’re able to amend the returns from prior years, which can result in an additional tax refund.   

I strongly recommend using a CPA to prepare your taxes instead of a tax service such as H&R Block.  A CPA will have a degree from a four year college, while the tax preparers at H&R Block may have taken as little as one tax class and may have no prior tax experience.  CPAs are bound by ethical and professional standards that do not apply to non-CPAs.  If you have the misfortune of being audited by the IRS, you’ll want a certified professional in your corner.  Ultimately, spending a little more to have a CPA prepare your tax returns can be a great investment.