Should you do your own taxes?

3 questions to ask yourself

To help you decide whether to do your own taxes, I offer three questions that can help you frame the issue:

1. Are you prepared to give your taxes your time?

In 2007, the IRS estimated that the average taxpayer needed 24.2 hours to do his or her 2006 tax return, 52.2 hours if a Schedule C for business or a Schedule E for rental properties was filed.

Filing online can save you a lot of time filling out the forms. But you still must organize all the materials.  And that assumes you have a fairly simple return with a limited number of deductions. It also assumes you have a good idea of what the records you'll need to do your taxes. Not sure? No problem.  We have the answers!!

 

2. Are you prepared to put up cash to hire a preparer?

Getting someone to do your taxes can cost $50 to $100 at the low end -- assuming a simple return -– or up to several thousand dollars for a complicated return. The average for an itemized return is more than $200.

One consideration: Any fee you pay may be deductible on your 2009 return if you itemize. Tax preparation fees qualify as miscellaneous deductions, the sum of which must be more than 2% of your adjusted gross income before you can claim a deduction.

3. Are you prepared to deal with the complexity of the federal code?

Because the tax code is so complicated, more than 60% of Americans have professionals do their tax returns.

A growing number of individuals are filing electronically – more than 90 million taxpayers filed their 2008 returns that way. Much of this growth has come from professionals filing their client's returns electronically.

Even though electronic filing has made mathematical errors less likely, many taxpayers still need or want assistance. So if  you lack the time, skills or interest to handle your own IRS paperwork, come to Tax Centers of America in Clarksville, AR and get  your money's worth.