Tax time is just days away, and this probably isn't the first year it's snuck up on you.
Maybe it's even your first time.
Yep, adulting is hard.
It's even harder if you have a small business, multiple incomes, an investment property or just a pile of receipts you'd rather not deal with.
But even if your tax seems relatively simple, the question of whether to get an accountant to help might have crossed you mind.
"It is a good idea to assess your needs for an accountant each and every year," says Laura Higgins, ASIC senior executive leader.
"Some years your tax situation may be straightforward, and you feel confident to do it yourself. Other years you may need the help of a professional."
So how do you decide the best course of action?
Doing your tax for the first time
If you are doing your tax for the first time, it's likely to be pretty simple, despite what you might have heard.
"Doing your taxes is often portrayed as a very challenging — and potentially scary — thing, so it is understandable that a young person may feel overwhelmed," says Kathrin Bain, lecturer at UNSW's School of Taxation.
"However, programs like myTax try to make it relatively straightforward and provide a lot of information."
If you are feeling nervous, an accountant is an option, but doing it yourself can also help you learn more about the process, says Ms Bain.
How much are you hustling?
The more complex your income, the more reason to see a registered tax agent.
Small business, rental properties, capital gains — all these things can be difficult to get right when lodging a return.
"Depending on your personality, using an accountant may relieve some of that stress and pressure," Ms Bain says.
They can also help you moving forward to stay on top of things.
"If you own or run a business, an accountant can help you keep the necessary financial records required by law," Ms Higgins says.
If you only have one income, minimal items to claims and good record keeping, lodging a tax return through MyTax is relatively straightforward, says Ms Bain.
"The ATO has a lot of data it prefills into your return. It will have information like your employer salary, tax withheld, interest — even if it's 5 cents you got from the bank, and things like dividends.
"It will just be a matter of checking it's right, because it is still your responsibility."
Deductions, however, won't show. So you'll need to keep track during the year and keep necessary receipts too.
Do you know what you can claim?
You've kept your receipts, but do you know what you can rightfully claim?
"Common deductions include work-related expenses, self-education expenses, charitable donations and the cost of managing your tax affairs [like paying an accountant]," Ms Higgins says.
You can find out more about deductions at the ATO's income and deductions.
"If you're lodging online, make sure you read the definitions of deductions carefully," Ms Higgins says.
If you're not feeling confident accountants can ensure you stay within the law, and help maximise your claims.
But they aren't "miracle workers", warns Ms Bain
Other reasons an accountant might help you
If you've made a mistake on a past tax return, you can request an amendment through myTax yourself.
But if you're unsure about whether you should be making an amendment or what impact it might have, an accountant would be a good idea, says Ms Bain.
Running out of time? An accountant has longer to lodge your return that you do.
"The standard due date for individual returns is 31 October, but if you use a tax agent, it could be as late as 15 May of the following year," Ms Bain says.
Those dates will vary slightly depending on the agent, however.
How much do you want to spend?
Lodging your tax return yourself and correctly will save you money, Ms Bain says.
"I see tax agents advertising returns for $99 I've always been a bit wary, because for those fees they won't spend much time with you, they will just rely on the information the ATO has prefilled."
Outside of those offers you're looking at a few hundred dollars, even if you have fairly simple affairs, she says.
"And if you have a rental property and capital gains, for example, it will increase again."
Ms Higgins recommends getting a quote for your specific needs before booking.
"Before working with an accountant, contact them and find out what you will be charged and when, including whether you can claim an offset for the fee of managing your taxes in the following year's return."
You're still responsible for your return no matter what
There's a reason that even when an accountant does your tax return, you are required to sign off.
You are declaring that the agent has prepared the return correctly, and the responsibility lies with you.
If there is an issue down the line, and you did in fact provide an agent with the correct information, Ms Bain says you can make a complaint to the Tax Practitioners Board.
"Also, the taxpayer may be eligible for what the ATO calls 'safe harbour' provisions, which means in certain cases, the taxpayer won't be liable for administrative penalties if there has been fault on the part of the tax agent."
Pros and cons from someone who's tried both
Kristi Farmer is a bank manager from Brisbane, and has used both methods to lodge her tax.
When an employee with standard deductions, she's found the myTax simple enough to navigate.
"You may need to do a bit of reading so you understand what you can and can't claim as tax code can change, but it's fairly simple and most employees should be able to do this themselves," she says.
But when she owned a business, turning to an accountant made life easier, she says.
"Someone does all the filing for you and you just need to present the information," Kristi says.
"They can also help you in understanding what deductions you can take and find you additional money owed."
The one drawback she says was how costly it became.
This article contains general information only. You should obtain specific, independent professional advice in relation to your particular circ*mstances and issues.
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