Tashiana and Luis, both in their thirties, tried to file their taxes on their own last year using tax preparation software. However, they weren't sure if they were claiming all the deductions they were entitled to, so they decided to visit a tax preparer. In the end, it didn't give them much confidence. A good tax professional would have noticed any inaccurate or mismatched data. Proofreading your books before filing your taxes may increase the tax preparer's fee, but it will likely be cheaper than filing an incorrect return with the IRS.
A tax professional can also advise you on future deductions and cancellations, or changes you can make to your company to reduce future tax payments. Despite the increasing availability of tax preparation software, certified public accountants (CPAs) and other personal tax preparers are still in business. The initial savings of using tax software instead of an accountant is one of the most attractive benefits of filing your own taxes. However, a professional understands the nuances and ever-changing tax codes that affect people with complex tax situations. They are also familiar with the most obscure tax forms (or at least know where to find them), and can help you determine your tax base if it doesn't appear otherwise in your investment documents. People with more complicated tax situations, such as business owners, those who share custody of a child, those who have received a large inheritance, or those with a lot of capital gains from cryptocurrency transactions and other investments, may consider hiring a tax professional as they can provide valuable advice.
Even if your tax situation is simple, hiring a professional will save you time and stress. Ultimately, there is no one-size-fits-all answer to the question of hiring a tax professional or doing your taxes yourself with software. In addition, the professional may discover deductions, credits, or other tax strategies that you are not aware of and that could significantly reduce your tax bill.