Q: Do I need a tax accountant?

A: Years ago, life was easy, and I was able to file a 1040ez form. But then again, I wasn’t making a lot of money either. Then I got a better job, and started making more money. Soon after, I got married, and started running a small side business. My taxes got more complex! I started using tax preparation software such as TurboTax or TaxCut. Life was very stressful! I am a computer programmer for a living, so running the programs was not a problem. But going through, and making sure you filled out all of the correct forms, and found all of the deductions, etc, that was a pain. One year, I ran our numbers, and it came back saying I owed $5000 in Federal taxes, and I hadn’t even gotten to state taxes yet! I began to panic. I didn’t knwo where I was going to come up with $5000. I double checked the numbers to see if I had made a mistake. I found a couple small mistakes, but not enough to make a difference. I remember calling my wife on the phone telling her that were in trouble! I decided to contact a tax accountant. I talked to a friend, and he recommended his tax accountant. So I called the tax accountant, and made an appointment. I brought in my pile of papers, and we sat and went through them. He asked for some information about bills, and the size of our appartment and some other stuff. I went home and found answers to his questions. It turned out we could deduct part of the rent of our appartment, and bills as business expenses.There were some other things he found too. He got our Federal taxes down to a little over $2000. I am sure he got our state taxes down as well! The tax accountant’s bill was I think around $250, but he saved us $3000-$4000. I have never used tax software again!
So do you need a tax accountant? If your taxes are complicated enough that you need tax preparation software, then you might be able to benefit from a tax accountant!