How DIY Tax Preparers Cost Themselves Money

DIYers are found everywhere from making a tiramisu to repairing a leaky faucet to building your own log cabin.

I’m all in when it comes to saving money. I once installed a dishwasher with the assistance of my smart and crafty twelve-year-old cousin. I love finding bargains and snagging a deal…BUT sometimes being a DIYer can cost you money!

I’m sure if you’ve attempted any DIY projects, you have at least one failed attempt. If not, just google DIY Fails and be prepared to laugh! Preparing your own tax return can be costly. There are changes every year to tax laws. The IRS has new tax deductions each year that may benefit you as a taxpayer. Tax professionals are trained and qualified in these tax laws. Enlisting a tax preparer may cost you a preparation fee, but the result is worth the fee.

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Let’s talk Affordable Care Act for a moment.

The ACA provides a credit for your health insurance through the Marketplace. This credit is based on your adjusted gross income. A few years ago, someone prepared their own tax return. This return included a 1095-A (the form provided to report your ACA credit). The taxpayer had one 1099 in addition to two W-2’s. No big deal, right? Wrong! The taxpayer, saving a little money, prepared their own tax return adding the 1099 income to their adjusted gross income. The IRS reviewed the return. This income of slightly over $600 was now about to cost the taxpayers around $15,000!!! As tax professionals, we were able to review this return. We determined the 1099 income should have been placed on a Schedule C with allowable deductions. This reduced the adjusted gross income and the assessed tax liability from the IRS.

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Deductions and credits are everywhere.

Child Tax Credit. Earned Income Credit. Recovery Rebate Credit. Adoption Credit. Education/Tuition Credit. Business Use of Home. Mortgage or Student Loan Interest Deductions. We ask questions to gain the greatest deduction and/or credits for you. We stay up to date on tax law changes and ways you can benefit from new credits available.

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So, if you like a bargain like I do, google a recipe for tiramisu, check out your local grocery store’s sales flyer, and get to baking. And if you put together your own log cabin from a kit, let me know. I’d love to see it! As for your taxes, give us a call to set up an appointment with one of our accountants. We also offer drop off service. It’s our business to save you money!