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How Much Money Can a Tax Professional Save You on Average?

How Much Money Can a Tax Professional Save You on Average?

April 04, 2017

It’s time once again for Uncle Sam to check through your financials and find out whether you are due a tax refund or need to pay in additional money. You may be overwhelmed with the many options available to prepare and file your taxes, from self-preparation to hiring a personal accountant.

Each option has its own set of advantages, though doing your taxes yourself is likely to cost you more money in the long run unless you are a certified public accountant (CPA). While DIYing your own taxes may be tempting, you may be able to save a lot of money by hiring a qualified tax professional.

Income tax specialists may reduce your tax bill or increase your tax return.

There are over 2,500 pages of tax law. It would be impossible for you to know these laws inside and out. Knowledgeable in the intricacies of our nation’s complex tax codes, tax prep experts can prepare all forms necessary to ensure an accurate return is filed. This often reduces your tax liability, meaning you can keep more of your hard-earned cash or put more into your pocket.

In one survey of 2,000 taxpayers, self-filers received an average of $1,775 per return. Those that used a tax professional received an average refund of $2,615, an increase of $840. While hiring a tax professional may cost more upfront, the amount of money you can save is well worth any out-of-pocket fees.

Income tax specialists save you time – and time is money.

This old saying has never been more true than in today’s fast-paced world. Time spent doing your taxes can be costly, especially if you have your own business or itemize deductions, as it is not a quick process. While you will still need to provide your tax professional with appropriate tax-related documents, you can save an incredible amount of time letting someone else do the work – about 13 hours on average.

Income tax specialists help protect you during an audit.

Approximately 1 in 103 people making under $100,000 a year get audited by the IRS. An audit can be incredibly intimidating and stressful, especially if you prepared your taxes yourself. Getting audited is often the result of a simple oversight or error that could have been prevented had your taxes been prepared by a professional.

Furthermore, if you make over $200,000 a year, you are three times more likely to be audited than people making less than $100,000 a year. Having more confidence in your return can prevent undue stress and save you from owing taxes later down the road. Reputable tax preparers will guarantee there are no mistakes and accept liability in the event something is incorrect after filing.

At Vault Wealth Management, our Palm Beach accountants offer precise income tax preparation for individuals, families, and business owners, as well asinvestment options to stretch your refund dollars. Call our tax professionals in West Palm Beach today at (561) 223-3252 orcontact us online to get started. Let us make this tax season stress free and financially beneficial for you.