The Daily Money: Should you pay someone to do your taxes?

Finding out how much you owe the government (or how much they owe you) is no simple task. This is why people opt to have someone else do it for them. ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

The Daily Money ALL THE MONEY NEWS YOU NEED TO KNOW   Sunday, February 19 Tax Season 2023 is upon us.   For many, this time of year can feel like a never-ending headache. Which forms do I need to fill out? Has my employer sent them to me yet?   Finding out how much you owe the government (or how much they owe you) is no simple task. This is precisely why many people opt to have someone else do it for them.  But is it worth the money? Today's newsletter helps determine which filing decision might be right for you. Who is paying a tax professional?  A study released by the IRS indicated 53% of all taxpayers in 2021 used a paid tax professional. Gen Z, however, was significantly less likely to do so. Only 33% of people from 18 to 24 used a tax professional compared with the over 50% of every other age group.   Middle-income earners who make between $75,000 and $90,000 a year were the most likely to hire someone to help with taxes, with 59% of them turning to a professional, the IRS reported. When should you file your own taxes?  The simpler your tax filing is, the easier it will be to do it yourself. Less forms, less hassle after all.   If you have only a few income sources (a few 1099s, a W-2, and some bank accounts) AND you plan to take the standard deduction, filing yourself will be fairly simple. You can turn to online tax software or the IRS website. When should you hire someone to do your taxes?   Probably after a major life change. Many monumental milestones – buying a house, getting married, having a child – may mean a change in your taxes. This can make filing more complicated; maybe it's time to phone a friend.   A tax professional can help you stay organized if you're starting a business, retiring, or going through a divorce. It may also be wise to seek professional help if your income has started to come from a lot of sources, if you have had losses in an investment portfolio, or if you have received an inheritance or settled an estate. If you decide a tax professional is the way to go this tax season, here are tips on how to choose the best preparer. To itemize or not? Here's what to know, plus overlooked tax deductions Most take the standard tax deduction, but itemizing may work out better for you. Here's what to know, plus some overlooked deductions and credits. Only self-employed can deduct home office expense. Everyone else pays Robinhood and other brokerage firms sent out 1099 tax forms this week Tax season 2022 considerations for gig workers and side hustlers Should you do your own taxes or hire a pro? We can help you decide. Average tax refund for early filers down nearly 11% from a year ago What are the 2022 IRS tax brackets? How to find out which bracket... Filing taxes for the first time after marrying? Is it better to file... Free tax preparation services: Where can you file your taxes for free? Surprise! There are times you may want to wait to file your tax return   Problem viewing email? View in browser Unsubscribe • Manage Newsletters • Terms of Service • Privacy Policy/Your California Privacy Rights • Privacy Notice • Do Not Sell My Info/Cookie Policy • Feedback © 2023 USA TODAY, a division of Gannett Satellite Information Network, LLC. 7950 Jones Branch Drive, McLean, VA 22102