Open Thread: How Are You Handling Your Taxes This Year?

income-taxesIt’s nearly tax time in the U.S. and that means decision time for many freelancers. It’s time to decide how to handle income tax preparation.

Freelancers have several options when it comes to income tax preparation. They can:

  • Do it themselves
  • Use tax software
  • Hire a professional such as an accountant or bookkeeper

Of course, each choice has its advantages and its disadvantages.

If you prepare your income taxes yourself, you won’t have to pay an accountant. However, you might also miss out on some of the deductions and tax changes that an accountant would know about. Depending on your circumstances, it can also take a considerable amount of time to complete the tax forms.

If you use tax software to complete your income taxes, you’ll be joining a large group who depend upon these handy tools. However, there is a cost associated with purchasing tax software. The more complex your situation, the more money you’ll likely need to spend on tax software.

Using a tax professional is the most expensive option, however, in some situations it could be the best. Your tax accountant can customize your return to include the details of your specific situation. Also, you don’t need to spend hours of your own time (hours that you could use on paying projects) doing your taxes.

Have you made a decision about income taxes yet?

How Are You Handling Your Taxes This Year?

Share your ideas and thoughts in the comments.

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