Editor’s Note: This post was originally published in February 2012 and has been updated for accuracy and comprehensiveness.

While doing your own taxes might be an easy way to save money, some individuals, especially those with complex returns, may need a bit more assistance to make sure everything is in order on their return. 

The IRS estimates that for the last tax year (2022 as of this update), 93.8% of tax returns were submitted through electronic filing. Of those, third party estimates suggest that between 40-60% of those returns were prepared by individuals, with that number changing a little each year. So, what can you do yourself on your taxes? Is your situation a good fit for preparing your own taxes, or do you need additional help because of complex issues or problems? Read on for a few things to consider.

 

Deciding If You Can Prepare Your Own Return

Largely, your ability to prepare your federal income tax return depends on the amount of time you're willing to put into researching the applicable tax laws and guidelines for your situation. If you have a relatively simple return such as a form that only reports income from one or two jobs, you'll likely be able to prepare it without any problems. Even if you have a slightly more involved return with multiple deductions or sources of income you can still find information on the Internet that can help you complete your forms. Doing research on the official IRS website can provide you with the answers to many questions you may have.

 

Though there are many paid resources, here are a few free things that can help you with filing your own taxes:

 

• IRS Free File. Any taxpayer can use this program to fill out and file online tax forms, but those with an adjusted gross income of $73,000 or less receive guided preparation and additional help with electronic filing.
  
  
• IRS Tools Reference Page. From refunds to filing tools to specialized tax calculators, this page offers links to some great resources straight from the IRS.
  
  
• Low Income Taxpayer Clinics. This program is free for low-income taxpayers who need help filing returns or settling disputes with the IRS. Be sure to check the qualifications though, as there is an income limit for free service.
  
  
• VITA and TCE. These IRS programs have been around for over 50 years and provide free help and counseling for people who need help preparing their tax returns, including people who make $64k or less a year, are disabled, or speak limited English.

Whatever tools you use, please make sure you file your tax return before Tax Day. Even if you can't pay your full tax bill, filing your return before the due date will keep you from getting stuck with costly failure-to-file penalties.

Complex Situations That Need Professional Assistance

There are some situations, though, that need the assistance and expertise of a qualified tax professional. If your tax situation involves any of these scenarios, it's best that you speak with an experienced tax preparer or financial adviser before going ahead with your return.

Tax audit - If you're currently being audited you certainly don't want to deal with that on your own. You'll need the help of a skilled tax resolution specialist who can help you prepare your case, sort through your records and provide proof of your claims.

Offer in compromise or penalty abatement - Taxpayers who owe back taxes and request an offer in compromise rarely have their request granted. If you apply for this provision, you'll need the expertise of a professional. Penalty abatement is also difficult to get since it absolves you of any tax penalties you owe.

Installment agreements - Installment agreements that involve more than $25,000 in back taxes and those that deal with partial payments are tricky to handle. Professional advice can help you avoid making costly mistakes.

Wage garnishment - If the IRS sends you a notice of wage garnishment you may want to file an appeal and request a hearing. If your request is granted, you'll benefit from the advice of a professional in tax preparation help for your case.

Before you begin preparing your own tax return it's wise to take a long look at your specific tax situation. There may be things you can do on your own and for free, but if you're dealing with any complicated situations, hiring a professional tax preparer can help you save on your tax bill.