Each year starting sometime in January, we begin to think about that special season coming up. No, it’s not the spring season or baseball season. It’s tax season. And with that season comes the usual question, Should I do my own taxes or not?
At some level we feel like consulting a tax professional would be a good step. Maybe they could save us money because they know something we don’t. I mean, who really wants to pay the government more than they have to?
On the other hand, hiring a tax professional takes money. A good accountant or CPA could cost hundreds of dollars. We wouldn’t want to pay for their services if we really didn’t need it.
So it leaves us wondering, “Does my situation require professional help? Should I do my own taxes instead of bringing in someone who will cost a lot of money?”
The answer may surprise you, especially for those of you who know I’m married to a CPA.
Like you, my tax paperwork is due to be filed by April 15th. I’ll grant you this is no fun to fill out every year. It’s become a much easier task though since my wife became a CPA.
The unfortunate reality is that there is no silver bullet to avoiding an IRS audit. The IRS can choose to investigate and audit anyone they please at any time. Even low-income earners can be subject to an audit if the IRS becomes suspicious.
So no one was more surprised than I when two weeks ago I signed a two-year lease on a car. I felt a bit dirty doing it, like I was committing the cardinal financial sin and selling my soul away. So I’m writing today to explain my actions given the terrible track record leases have for the consumer.
It’s hard enough to deal with the topic of our own death let alone what will happen to our possessions once we pass away. Setting up a family inheritance can get complex and technical.
Feeling a little charity-minded? Here are some tips that may help you come tax time.
To paraphrase Shakespeare, a tax by any other name would still smell as vile. But the Obamacare tax, otherwise known as the “individual mandate,” may be an exception. While I am not suggesting that you avoid the tax, it is clear that many people intend to do just that. A recent Gallup poll found that 34% of Americans intend to thumb their noses come tax time instead of holding them.