There is always a dilemma to decide if you should file your taxes your own or seek a professional. I know you are going to giggle here if not laugh! There is no right or wrong answer here. It all depends on your personal situation. Some of these factors should play a vital role to help you to make this decision:
When to file your tax return your own?
- Your tax situation is simple enough
You have only a couple of T4’s and few other simple receipts for the whole year. There is not much change in your financial situation compare to last year.
- Simple math is fun for you
You don’t hate numbers actually love to work with figures. You get a good handle on basic mathematical functions.
- You know your financial situation better than anyone else
You know in and out of your personal situation. Also, you don’t like narrating each and every tiny detail of your personal situation to someone else.
- You keep yourself up to date on changing tax laws
From time to time, you make efforts to educate yourself on changing tax regulations. CRA website http://www.cra-arc.gc.ca/menu-eng.html is the best source of taxation related information.
When it’s better to seek a professional?
- You have multiple pending tax returns from previous years
It’s better to seek a qualified tax consultant when you are looking to file multiple tax returns from previous years. These professionals keep themselves up to date on changing tax regulations all the time. They will be in better position to help you get current with CRA.
- You have started a new business and you have no clue about business taxation
It’s better to seek a professional when you don’t have much understanding of business taxation.
- When you own multiple properties or a complex investments portfolio
It is not recommended to file your taxes your own if you own multiple real estate assets or a complex investments portfolio. In this situation, it’s better to hire a professional to advise you on your unique tax situation
- There are quite a few changes in your personal life compare to previous years
You might need to seek a professional if you got divorced or lost your partner or your family got bigger. Some situations are not too bad but dealing with divorce or widow situations could be challenging to handle especially in stressful time.
Personally, I am filing my own taxes for last 10 years without any real issues. Preparing tax return is not too painful as many of us think. For sure, this decision should not be taken rashly without considering your own situation. If you are confident enough about simple tax returns then you can even help your family members to save them their money.
Again, It totally depends on your own unique financial situation. You should always seek a professional when you have a complex tax situation and you just hate working with numbers.
Disclaimer: This is a personal blog. The opinions expressed here represent my own and not those of my employer and all data and information provided is for informational purposes only.