Far too many people are overawed at the thought of dealing with their own money and therefore pay out lots of that money to professionals like CPAs, financial planners and tax advisers. But there is a great deal of money to be saved by becoming self-reliant in money management. Find yourself a good piece of free personal budgeting software and avoid paying for a financial planner. Learn to make the most of your own money and investments and do your own tax return.
If the thought of doing your own taxes leaves you cold then you’re not alone but here are five reasons to overcome your natural reticence. With a little study and some supportive software you can prepare and file your own tax return and keep more of your hard earned money in your pocket!
- You will save money! Tax advisers can be very expensive since many of them also charge by pieces of paper even if a form is left blank! Tax software packages have made the whole process easier to do, easier to understand, more transparent, far cheaper and less time consuming.
- You keep all of your personal financial information to yourself. Protect yourself in this dangerous world of open information access by dealing with all of your own tax needs.
- You learn invaluable knowledge about finance in general and your finances in particular. Each year will be easier than the last and you will learn more through the annual comparison.
- A tax advisor will only take the data that you gather and keep throughout the year and then use you to help them input it to the IRS. So you save all that consultation time when you do it yourself.
- You can do the necessary work in your own time and on your own schedule. All good tax software will save your data input progress as you go and it will be waiting for you to return and complete it.
A tip for saving money and time on your taxes is to set up labeled files that you keep up to date through the year. For example car expenses with gas, maintenance bills etc. all added up as you go. Do this now for next year’s tax deadline and there will be no big surprises. File any receipt and tax related documents in the appropriate file as soon as you receive them. Fifteen minutes each week will save the time and costs of errors that inevitably arise when you do the ‘last minute rush’. You will also avoid the cost of applying for a deadline extension as well.
Doing E-taxes also helps save some trees! It speeds up the whole process and you get your correct refund more quickly and directly deposited to your account. Don’t give your interest to Uncle Sam. Empower and educate yourself in financial planning and the tax laws as they apply to you and make money by not spending it on professionals.