Why Hiring a Tax Professional Could Save You Thousands

Maximize Your Deductions: The Advantages of Hiring a Tax Professional

2 min readMar 3, 2023

By Andrew Lokenauth

Photo by The New York Public Library on Unsplash

Hiring a tax professional can be advantageous for those with complicated tax situations or time constraints. Consider the potential benefits and costs to determine whether it’s the right choice for you. Here’s what you need to know:

1) When to consider hiring a tax professional:

• Complicated tax situation: If you have investments, own a business, or have multiple income sources, a tax professional can help ensure you maximize your deductions and credits while avoiding costly mistakes.

• Short on time: Filing taxes can be time-consuming, and a tax professional can help alleviate the burden, allowing you to focus on other important tasks.

2) Benefits of using a professional:

• Accuracy: Tax professionals have expertise in tax law and can ensure your return is compliant with all regulations.

• Maximizing deductions: Tax professionals can identify all eligible deductions and credits, potentially saving you hundreds or thousands of dollars.

• Peace of mind: Hiring a tax professional can reduce stress levels and provide confidence that your taxes are in capable hands.

3) Factors that might dissuade someone from hiring a professional:

• Cost: Fees for hiring a tax professional can range from a few hundred to several thousand dollars, depending on your tax situation and the complexity of your return.

• Simple tax situations: If your tax situation is straightforward, it may not be worth the cost of hiring a professional.

• Preference for DIY: Some people prefer to do their taxes themselves and may not feel comfortable outsourcing the task to someone else.

4) Timely reasons to use a tax preparer this year:

• COVID-19 relief measures: Tax law changes due to the pandemic may mean new credits and deductions for individuals and businesses, and a tax professional can ensure you take advantage of all available tax relief measures.

• Remote work: If you worked remotely during the pandemic, your tax situation may be more complicated, and a tax professional can help navigate the complexities of remote work-related tax issues.

Do you do your taxes on your own?

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I write TheFinanceNewsletter.com for 50,000 subscribers. My expertise comes from real-world knowledge, sharpened by 15 years working on Wall Street and Banking.