How Much Is Your Time Worth For Tax Preparation?

How much is your time worth?  If you aren’t sure, start with your hourly wage at work.  The average wage in the United States is about $24 an hour.  When you recognize your value, it becomes easier to decide when it is more cost effective to pay someone to do something for you rather than doing it yourself.

When you prepare your taxes, is it cost effective to pay yourself to do it or to have an expert do it for you? 

Do-it-yourself tax preparation software products range from $20 to $100 for personal federal income taxes; tack on another $25 to $35 for state software.  On top of that, everyone should add the cost of their time, which, for most is between two and four hours.  For the average tax payer to file each year, this amount can be close to $250!  Would it surprise you to know my average client pays the same amount?

Think about this: have you ever finished your taxes and thought to yourself, “Another easy year; can’t wait until next time!”  Probably not.  So, there is also the cost of the frustration it causes, which is not so easily quantified.

And what about the cost of missed deductions and credits?  Or the letter from the IRS saying they found an error in their favor?  Many people say they prefer to prepare their own taxes because hiring a professional is too expensive.  What most people don’t know is how affordable a quality tax professional can be and how they will generally save you more money than it costs to hire them.

Call me today at (203) 307-0272, and let me save you the time, money and frustration that comes with preparing your taxes.