First of all, I am not a tax expert, CPA, or tax attorney. Nothing in this post should be taken as tax or legal advice. Please consult with your own CPA or attorney.
I don’t know everything
It is hard for me to admit, but I don’t know everything and sometimes I need help. This year, I learned that I needed to file certain tax forms that I not only have never filed
Why I actually hired a tax professional
As I said, my taxes got more complicated this year. When I bought my first house several years ago, I used a first-time homebuyers government grant to help with my downpayment. In return, I agreed to not sell that house for nine years. I had no intentions of moving out of that house any time soon. But life happens and plans change.
Since I bought that house, I went back to school, got laid off from my job, took the Bar exam, and got a new job. Then I found a dream job in a city 3 and half hours away. I needed to pack up and move within 30 days and sell the house that I spent the last five years renovating, decorating, and making a perfectly comfortable, functional, and beautiful home for me and my dog. That also meant that I had to send the IRS specific forms about the house sale.
What I learned
I LEFT MONEY ON THE TABLE.
Apparently, I hadn’t been taking advantage of
Does this mean you need to hire a tax professional?
Not necessarily. If your income is fairly straightforward, you normally only file a 1040EZ. You may not need one.
Though, if you have a small business, several sources of income, own property, or have made any big purchases or sales within the last year, you may consider speaking with a CPA to see if their services and fees would be something that you would like to consider.
The bottom line
Ultimately, ONLY YOU know your financial situation and whether you need a CPA or tax professional. Even if you may not need one, you may always hire one anyway for peace of mind.