If you tend to sob every tax season while compiling your yearly expenses or checking random boxes on TurboTax, then you have come to the right place. I, too, used to be in your position — until I hired an accountant and made my money problem her money problem.
Before that, however, taxes were my albatross. I am a freelance writer, which means, come March each year, I have an infinite number of W-9 and 1099 forms to sort through. I am married to a stand-up comedian who performs at venues across the country and therefore has more 1099 forms than I do (and don’t even get me started on his travel expenses). We file jointly, and our tax situation is a logistical nightmare — and one, if I’m being honest, we simply aren’t equipped to handle ourselves.
A few years back, a family friend noticed we’d become prisoners to our taxes and made a suggestion: Why not use an accountant? This seemed unaffordable and unrealistic for two gig workers, but we ultimately heeded their advice and have never looked back. In fact, it made such a difference for me that I now feel personally responsible for preaching the gospel to anyone who will listen. If you can finagle it, please, for your sanity, do yourself a favor and use an accountant.
Yes, filing taxes is a god-awful, laborious process
Let’s address the obvious: Filing your taxes is the worst thing on Earth. As Nathan Astle, a financial therapist with Financial Therapy Clinical Institute, succinctly put it: The task requires a lot of mental energy. For many people, following the prompts on a DIY service like TurboTax or FreeTaxUSA — while enticing — is not a simple, intuitive process. Many of us have several items to report: multiple income streams, as is the case in my situation, or student loans, car loans, interest on your bank accounts, investments, inheritances, and property you own. Meanwhile, there have been several changes to the tax code this year that you may or may not be aware of. As a result, filing your taxes usually isn’t something you can knock out in a half hour. “There is so much we have to [report], and it’s really a form of cognitive overwhelm,” Astle tells Vox.
As a result, taxes can cause a tremendous amount of stress and anxiety, particularly if you were hit with hefty tax bills in the past. According to Astle, taxes often snowball into an emotional burden, with some folks (my younger self included) equating them to incompetency or a personal failure. He says that people might get caught in a shame spiral where they think there is something wrong with them — Why can everyone else get this done but I can’t?
If you become afraid of your taxes, your body’s automatic stress response — the fight or flight or freeze system — can activate, leading you to avoid doing them altogether or turn to unhealthy coping skills, including stress spending and lashing out at loved ones, says Astle. “I am doing everything I can to not deal with the problem,” he says. “All of that can be a downstream effect of the taxes themselves.”
Here’s how tax pros can help lessen the load
Tax professionals, like a certified public accountant (CPA), tax attorney, or enrolled agent, are financial professionals who’ve been specially trained and certified to prepare other people’s taxes. They are basically wizards who tell you the documents they need from you to file your taxes, such as your W-9 and 1099 forms, interest earned in savings, and taxable investments. Once you’ve handed those off, they organize them and then prepare your tax return. After that, they’ll share your finalized return with you so you can ensure it’s accurate and sign off on it. Then they’ll file the return with the IRS plus the state and city you reside in. Once that’s complete, they mail you a packet with clear instructions that state what you owe, to whom, and by when, says Dina Megretskaia, a principal and wealth manager at Modera Wealth Management. Or, if you overpaid and are getting a refund, the amount of money to expect in your bank account.
Our accountant showed me how I can write off a portion of my rent and monthly WiFi bill (because I have a home office) to cut back on how much I owe.
Accountants simplify what is a very complicated, confusing process. They ensure you are filing everything accurately, so you can avoid errors and, with that, needing to amend your tax return down the road, says Megretskaia. “Having a person walk you through the steps and break this big, bad thing called taxes down into Step A, Step B, Step C can help a lot,” Astle says.
Another perk: Accountants find opportunities to help you take advantage of tax credits or rebates to save money. “They have an understanding and awareness of our complicated tax code, and how your situation translates to what you have to pay,” Mergretskaia says. For example, they may advise you to contribute a specific amount of money to a retirement account to offset your taxes. They may coach you to funnel money into a 529 plan, a fund for your children’s education, or teach you how charitable donations can be deducted from your taxable income. Our accountant showed me how I can write off a portion of my rent and monthly WiFi bill (because I have a home office) to cut back on how much I owe.
Signs it’s time to hire an accountant — and how to find a trustworthy one
A few red flags to pay attention to: You put off your taxes to the very last minute every year, are behind on your payments, or can’t make sense of the language, which might as well be typed in Wingdings, on a DIY platform. Another clue: You do any of the aforementioned unhealthy behaviors like, say, crying, feeling totally overwhelmed, or snapping at your partner. Simply finding the process unpleasant or being strapped on time is enough of a reason, Mergretskaia says.
When searching for an accountant, Mergretskaia recommends first asking your friends, family members, and colleagues for a referral. I also found Yelp to be helpful — though, I will say, people tend to criticize their accountants in public reviews more so than sing their praises. Many accountants also do free discovery calls where you provide them with a run down of your financial situation and they shed light on the services they provide.
A warning: Accountants cost money — a few hundred if your taxes are fairly simple, but between $1,000 to $2,000, sometimes higher, if your situation’s more complicated. Do I love how much this costs? Of course not; but, for us, using an accountant is so very worth it, so we budget for it. (And, hey, if you’re self-employed, you can write off your filing fees the following year!)
There are a few ways to find more affordable options. People with disabilities, incomes less than $69,000, or limited proficiency in English can find free tax support through Volunteer Income Tax Assistance (VITA). H&R Block, a company that provides tax professionals you can work with either virtually or in-person, is a cost-efficient option. In general, finding a pro who is willing to work with you virtually, rather than IRL, helps lower the cost, too, Mergretskaia says.
Astle’s final tip: Find someone who will educate you. You want an expert who will not only do your taxes for you on time, but explain how various aspects — filing, expenses, write-offs, tax brackets, etc. — work and tell you how you can save money in the future if you owe a lot during the first year that you work with them. This, I’ve found, is crucial. My husband and I shopped around and talked to three or four accountants until we found someone who took the time to understand our unique situation and explain how she could help. Tax season still isn’t a delight — I’m not sure that’s possible — but it is no longer the dark rain cloud that once hung over my head all of March and April. And that’s all thanks to our accountant.
