As tax time rolls around you may be finding yourself wondering how to best spend your money:

• On the gas to drive to a government building to pick up some tax forms
  
• On tax preparation software to do taxes on your own
  
• On a tax professional who can do your taxes for you
  

There’s no blanket right answer to this question. However, in certain situations it may make sense to hire a professional. For example, you may want to turn it over to a preparer if you:

• Are concerned about a mistake costing you money
  
• Are reporting the sales of non-retirement investments or have a large amount of investments in general
  
• Have self-employed income and want to make sure you get all the deductions you are entitled to
  
• Had multiple sources of income
  
• Had investment property income
  
• Had a short sale on your home during the tax year
  
• Don’t feel you will have the time to accurately and thoroughly complete your taxes on your own
  
• Want to have someone who knows your situation and can provide you with good tax advice throughout the year
  
• Are being audited
  
• Are concerned about recent changes in tax laws
  
• Have received a large inheritance
  
• Went through a divorce during the tax year
  
• Have children from a previous marriage
  
• Bought or sold a home
  
• Have numerous itemized deductions
  
• Have started your own business
  
• Had debt cancelled in the tax year
  
• Went through bankruptcy
  
• Supported people who aren’t your children
  
• Own employee stock options
  
• Had large medical expenses
  

With taxes it’s better to be safe than sorry. Not only could a mistake mean owing more than you thought, but it could result in needing to pay a penalty too. If your tax situation seems pretty straightforward, then doing your taxes on your own is fine. But if there is something you aren’t particularly clear on, it’s a good idea to get advice from someone more familiar with tax law.