9 Reasons to Stop Doing Your Own Taxes

Wednesday, 29th April 2020

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Even if it might appear a shortcut to do it yourself, one small error can lead to less in return, or worse, ATO penalties. Our advice is to leave it to the professionals and let them legitimately maximise your return and avoid the stress of doing it yourself - after all our small preparation fee is a tax deduction in itself. Below are nine reasons to stop doing your own taxes and turn to a professional. 1. Mistakes&nbsp; Understanding and entering tax information isn&rsquo;t easy, especially if you aren&rsquo;t a tax professional. The industry jargon and terminology used is not always easy to understand, but to a professional, it's everyday language. 2. The software can be confusing&nbsp; Even though some accounting software does allow you to talk to a professional on a once-off occasion, it is not the same as developing a good, consistent relationship with a tax professional. Professionals can prevent you from making mistakes and truly tailor your solution to your own unique needs. 3. New Tax Laws are confusing&nbsp; Keeping up to date with new tax laws on how to file your claim and important changes to the types of deductions you can make, can be a minefield. A tax professional will always be up to date with the latest tax changes and implications that are in effect for the filing season.&nbsp; 4. Late Returns Filing your tax return can be daunting, as it&rsquo;s a legal binding document that you are submitting to the ATO. For this and many other reasons several taxpayers avoid the activity altogether, If you use a professional, they can help you make sense of your historical position and help you assemble your financial year(s) perfectly in order. 5. Compassionate Reasons When a family member suffers, the added stress of doing your taxes can be too much to bear. You will be facing technical issues as well as emotional problems, so it is always a good idea to get a professional on your side. 6. You are recently divorced&nbsp; If you are recently divorced, filing a tax return can be made extra stressful by your ex-spouse's new accountant correcting your past tax returns. You could defend your own work, but this can be tricky. Hiring a tax professional to help resolve the situation will make the process simple, effortless and professional. 7. You are now a single parent; what do you report? Unfortunately, filing as single versus as head of the household could be significantly different in terms of tax. If you discuss your situation with a tax professional, they&rsquo;ll know the latest difference and work earnestly to maximise your new position. 8. You have become a landlord&nbsp; Congratulations you are now a landlord. When you are a landlord, completing your tax return is confusing because buildings depreciate, but the land does not. A family resident and a commercial property depreciate at different rates. You may be able to figure it out as you go. Still, there will always be opportunities to make mistakes - you guessed it - lean on a professional. 9. New business&nbsp; Are you a new business owner? Confused about what you can get deductions on. Many business owners towards the end of the year, frantically think about how they can maximise their deductions; however, it is usually too late. If you have support from a tax professional, they will help you track your expenses throughout the year and advise you on how to make decisions for the end of year deductions.&nbsp; Individual tax, business tax and business bookkeeping solutions. Yes, ITP Queensland covers all your tax needs. Looking for an excuse to max your tax season out? Contact your local ITP Business Centre today.