Me After Doing My Own Taxes Meme (2024)

FAQs

Is doing your own taxes worth it? ›

Although most people can benefit from doing their taxes on their own, there are some people who will likely be better off hiring a professional. Whether or not you're one of those people depends on the complexity of your tax return and your knowledge of your deductions.

When does it make sense to hire a tax pro? Anytime your taxes are complicated. Hiring a pro is a prudent choice after a major life change like getting married or divorced, having a baby, buying or selling a home or business, experiencing a major health issue, or retiring.

Speed - Filing your taxes online is generally faster than filing with a professional. You can complete your tax return in a matter of hours or even minutes, depending on your situation. Cons: Complexity - Filing your taxes online can be complicated, especially if you have a complex tax situation.

Overall, a third (33%) of Americans say they do their own taxes while 56% say someone else prepares their taxes. About six-in-ten (61%) of those who say they hate or dislike doing their income taxes have someone else do it for them, compared with 52% of those who say they like or love doing it.

A combination of coverage including 100% accurate calculations, audit support and a maximum refund. All guaranteed for the full 7-year life of your tax return.

The Bottom Line. Individuals with a single employer and few investments may save money by preparing their taxes. Those with business income or rental properties will find hiring an accountant worth their peace of mind and potential tax savings.

Hourly fees are usually $100–200 per hour, depending on what kind of tax forms you need to file.

Not filing a return when you should can result in penalties and fines from the IRS.

Which Are the Tax-Free States? Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming are the only states that do not levy a state income tax. Note that Washington does levy a state capital gains tax on certain high earners.

Lack of In-depth Tax Planning: While TurboTax can assist in preparing tax returns for the current year, it may not provide comprehensive tax planning advice for the future. A CPA can offer strategic insights to optimize tax planning and maximize tax savings in the long run.

What is the downside of TurboTax? ›

TurboTax cons

Costs may be higher compared to other tax software options, most notably for the versions that cover specialty tax needs such as rental properties or self-employment. Some users may find that the level of automation leads to less direct interaction with a tax professional.

High-Income Taxpayers Paid the Majority of Federal Income Taxes. In 2021, the bottom half of taxpayers earned 10.4 percent of total AGI and paid 2.3 percent of all federal individual income taxes. The top 1 percent earned 26.3 percent of total AGI and paid 45.8 percent of all federal income taxes.

CNBC's Robert Frank reports on Elon Musk's tax bill which is the largest in history. Musk will pay a total of $12 billion for 2021. Frank joins 'Squawk on the Street' to discuss the details.

Some people say they didn't feel like opening the mail, or they don't have the time to do their taxes...Then there's the Americans who just don't have the money to pay their taxes, or who are overwhelmed by the whole tax filing process.

It can be a confusing process for many people, and even you feel like you have a good handle on it, filing your taxes causes you at least some extra work. Worst case, depending on how accurate your withholdings were, you may owe thousands of extra dollars to the state or federal government. It can be a stressful time.

People should be careful of shady tax professionals and watch for common warning signs, including charging a fee based on the size of the refund. Some "ghost" tax preparers refuse to sign the tax return or ask people to sign a blank return.