Question from a reader:”Kim, I am a physician and I am finding that the cost of doing taxes is going up each year. I want to do my own taxes next year. How do I go about it? I don’t think it will be any problem for me.”
My answer is that I am sure if you have the mental processing and determination of will to make it through medical school that preparation of taxes will be easy for you, unless you are one of the types of doctors who doesn’t like to deal with numbers and money (other than making it).
The cliche is that doctors are notoriously bad with handling their own money even they are great (usually) at earning it. I think Dr. Zoidberg from the television series and DVDs Futurama is one of the few celebrated doctors that doesn’t make money. There is Doctor Doom but he controls his own country so that counts as making money.
Getting back to your question.
You can take a tax preparation course from most universities and schools. They generally start offering the courses in summer or fall for becoming a tax preparer for the following year. Contrary to popular marketing, H & R Block is looking for tax preparers and will train you but you generally, in most business markets, have to sign that you are taking the course to learn to work for them. The reason? You will be working with their in-house software and will have to sign the usual forms and releases in order to get an education. The tax training process has changed over the last few years and frankly, most tax prep companies have an abundance of tax professionals now that are working for them and not apt to quit in this particular economic time.
So if you are a multi-tasker (like several of us), that is great but what makes you think you have the chops to be a good tax professional? Or even simpler than that, even prepare your own taxes. From a business point of view, and I have used this analogy before, I can change my own oil but it is cheaper to pay somebody else to do it. I pay them, in two to three hours it is done and I am on my way.
Isn’t your time more valuable spent looking at people and determining why they are breaking out in a rash, checking their temperature and curing what ails them?
This applies to people in other professions as well. Just because there appears to be an easy way of getting up to speed for something doesn’t mean that it is right or even applicable to everybody. Judging from most people’s reaction to some tax software (and this is the self-service stuff), the programs are great for simple returns and for complex returns they end up causing more problems than they are worth and the people end up coming to see me anyways.
In any case, best of luck with your decision, whatever it is going forward.
April 19 2009
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Kim Isaac Greenblatt
I Want To Do My Own Taxes Next Year