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The 3 Best Ways to

Do Your Taxes in 2023

 

It’s time to start thinking about your taxes again. You might be wondering about the best ways to do your taxes. Do you do them yourself? Hire a CPA? Go to a brick-and-mortar tax firm? Let’s take a look at all three options and see what might be right for you.

Do-It-Yourself Taxes

If you are confident enough to do your own taxes, there are plenty of options available to you. Some of the most well-known tax software available includes TurboTax and H&R Block, as well as free services such as TaxSlayer and Free Tax USA. If you’ve done your taxes yourself in years’ past, one of the great perks about these websites is that they keep a copy of your previous tax returns in the cloud for several years. This makes filing subsequent years much easier, as you don’t have to go on the hunt through your house for your electronic or paper records. 

Tax software has also become much easier to use over the years. You can enter your information and file your taxes all in one evening. These online services also offer state filing as well as federal, so you’ll be able to do all your taxes in one place. These options are cheap—some are free, others under $100. For the average taxpayer, this is likely the best option.

Hiring a CPA

If your taxes are a little more complicated, you might consider hiring a CPA. These tax professionals know all the tax laws and can help you keep from being audited. If you’re a small business owner, hiring a CPA is definitely the right choice. They will know the forms you’ll need to file for your business, the income you’ll need to claim, and what you can write off. 

CPA’s might also be in the cards if you have a lot of taxable investments. Laws vary state to state, and if you have holdings in other states, you might need a tax professional to know how to file in cases like these. 

CPA’s are a great investment for doing your taxes if you give large charitable donations to various non-profits or if you own two or more properties. CPA’s can be somewhat expensive, however, depending on your needs. CPA’s usually run between $200 – $300. But if your taxes are intimidating and you’re not comfortable doing them yourself, a CPA is a viable option.  

Brick-and-Mortar Tax Firms

Another option would be your local in-person tax firm, which includes companies such as H&R Block, Liberty Tax, Jackson Hewitt, etc. Some brick-and-mortar tax firms also have the do-it-yourself online tax software available (such as H&R Block). The difference is that you’ll be able to talk to a live person and make sure your taxes are done right and filed on time.

You’ll need to book an appointment, as these firms don’t take walk-ins, but that gives you time to gather the information you’ll need. Make sure you bring all your tax documents to your appointment, such as any W-2’s, 1099’s, and a copy of last year’s return. Prices vary for in-person tax firms, but be prepared to pay between $200 – $500.

No matter which option you choose, doing your taxes doesn’t have to be a nightmare. It doesn’t have to be expensive, either. There are plenty of free options, including a free option through the IRS.com website as well. Choose the option that works best for you and your family and be sure to file your taxes before the tax deadline of April 18th, 2023.

To learn more about investing, closing the racial wealth gap, and growing generational wealth for Black and brown families, please visit Financial Joy School and become a part of our financial family.


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FJS

Author FJS

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