DIY Tax Filing vs. Hiring a Professional

Is paying a tax professional throwing your money away?

Not necessarily. I'm a huge believer in having your taxes done professionally—especially if your income exceeds $50,000 a year. In my experience, the savings you realize from a professionally done return will more than cover their fee. In fact, the savings are usually somewhere between five and 10 times your investment. So if you spend $500 having your tax return done, you will more than likely shave $2,500 to $5,000 off your tax bill. The investment return is relatively high. Plus, you can write off the expense! Most people come out ahead when they hire someone to do their taxes professionally.

Hire a professional if:

• You earn more than $57,000 a year
• You are self-employed
• You bought or sold a home recently
• You trade frequently
• You own multiple properties