Welcome to the Tax Insights Podcast, where we break down complex tax topics into bite-sized how-tos. In this episode of Tax Insights Podcast, Jeff Dvorachek explores the advantages and pitfalls of individuals handling their own taxes, exploring when it’s wise to DIY, and when it’s essential to seek professional guidance.
Join us today on Tax Insights as Jeff explores the nuances of personal tax management, weighing the convenience of software solutions against the expertise of professionals. From TurboTax to CPA consultations, we’ll unravel the complexities to help you make informed financial decisions. Let’s dive in!
Host: Hey, it’s Tax Season and on the program today, let’s talk about maybe some of the benefits and concerns of individuals doing their own taxes. I know that we live in a society where a lot of times, hey, DIY, right? Just do it yourself. And I think when it comes to your finances and taxes, maybe you should lean on the experts, such as Hawkins Ash.
Jeff: You know, I think that’s right, Terry. Now, to preface this conversation, I think there are a lot of people who can just use TurboTax or the free filing systems to file their own taxes. I mean, if you have a W-2, if you have some interest, maybe the kids are out of the house, so it’s just you and your spouse. I think that’s just fine to use those tax softwares because they’re going to give you the correct answer the majority of the time. When your life starts to get a little more complicated or when you have changes in your life, that’s the time that you really want to sit down and at least talk with a CPA to say, “Okay, do I need you right now? Can I use you just for some advice along the way? Or, you know, how should we go forward?”
Host: Yeah, and I think, you know, that’s great to point out that for some people, using those programs like TurboTax is okay. But you’re right, once things start to get a little bit complicated, it feels like a little complication actually is a lot of complication.
Jeff: Yeah, because you would think, you know, we’ve talked a lot about this gig economy and all that, a lot of side jobs. And although it may seem very simple to people, you know, “I’m just kind of driving for Uber or I’m delivering this or delivering that,” it does add complexity to your return. And there are things now that you can deduct that you were never able to deduct before, from your household items to car items to things like that. And unless you’re really going to dig in deep, you’re just not going to know what those are.
Host: Yeah, and I think, you know, again, that is one of the benefits of working with Hawkins Ash is that you guys are the experts. Like, you know, the changes in the tax laws a lot more than just the average individual who’s just trying to do this once a year.
Jeff: Right. And the other reason, Terry, is, you know, there’s a lot of times when you have transitions in your life, you know, maybe that first child is born or maybe your child goes to college, or even you’re getting closer to retirement. And all of a sudden, you know, this W2 income that you’ve just reported on your return all these years, now that’s changed. And maybe there’s pension income and Social Security and other things that, like I said, are just going to add complexity to your return. Yeah, those are the times I think you at least want to have the conversation with the CPA.
Host: And also, I think it’s good to point out too that the IRS, the government generally, is not going to just say, “Oh well, you didn’t know what this law, we’ll forgive you, right?” I mean, ignorance is no excuse oftentimes for the law. And with the tax law, there are a lot of things that you must know about.
Jeff: You are correct. And the other thing, Terry, is that the IRS will certainly let you know if you paid too little in tax.
Host: Right.
Jeff: A lot of times they will let you know if you paid too much.
Host: Yeah, why is that, right?
Jeff: You did pay us enough, or, you know what, you overpaid us.
Host: Yeah, we’re not going to tell you that part.
Host: So again, the experts at Hawkins Ash, you guys are here for individuals, families, businesses. Jeff, what is the best way for our listeners to reach out to you guys?
Jeff: I would go right to our website, which is HawkinsAsh.CPA. Go to that CPA-HQ section and then also go to, you know, Twitter, YouTube, and those kind of things to catch content just like this.
