Many consumers are filing their own taxes this year to save mone in a tight economy. Most surveys indicate that more people are expected to file taxes on their own than ever this year, leaving CPAs and professional prepares to the wayside. Doing your own taxes will add some padding to your budget, but it’s not for everyone.
Wells Fargo (NYSE: WFC) posted a release with a checklist to help consumers to decide if they should file their own taxes or leave it to the professionals.
Here’s What Wells Fargo’s release said:
The IRS and most states allow you to file your income taxes online. It provides all of the forms and software for your convenience, and it’s free. All the federal forms are available at IRS.gov.
Consider preparing your tax return yourself if:
— You have the time to find the forms and websites
— Your tax return is easy and straightforward with no need to itemize
— You rent your home and have no children.
— You are single, with one or two regular jobs paying a W2 income or married filing jointly and each partner has a W2 income.
Do-It-Yourself +
Commercial software programs will guide you through the maze of deductions and options to minimize your tax liability, provide support for audits, and have a tax preparer professional review your return. While they do charge for this, the fee is typically less than having an accountant or CPA prepare your return.
Consider using a commercial software program if you:
— Have plenty of time to complete your return
— Itemize your deductions
— Own your own home
— Have children living with you, living with a spouse, or living away at college
— Receive 1099s for miscellaneous income or partnership K1s
— Have capital gains or losses from stock or mutual fund trading
— Have partnership and trust income
— Have income from multiple sources and states
— Have a home office
— Are self employed
— Made significant charitable donations
Calling in the Cavalry
Professional tax preparers, CPAs, and advisors will complete your return while giving you advice drawn from their training and experience. They will likely find more deductions than you would on your own, and will help if you are audited.
Consider consulting a professional if you don’t want the bother of preparing the returns yourself or if your tax situation is more complex than the above — for example, if you:
— Own a small business and have depreciation
— Are worried about audits
— Are married but file taxes separately
— Receive bonuses and stock options
— Have experienced major life changes
— Are eligible for the first time homeowners tax credit
— Have international income
— Have a lot of assets
— Own rental property(ies)
Regardless of how you decide to file, remember the deadline always approaches fast!
You can visit Wells Fargo’s Tax Resource Center online at www.wellsfargo.com/tax_center/
