In this growing age of technology, more and more tax filers are taking the “Do It Yourself” approach. In fact, 35% of e-filed returns last year were self-prepared. Which is no real surprise considering tax software programs like TurboTax are significantly cheaper than hiring a professional. Yet is cheaper always better? Fortunately, there is a pretty straight forward answer to this question, which is… Not if it ends up costing you more in tax because you did not use a professional.

2010 brought about several new adjustments to the tax code regarding tax credits, Roth IRA conversion rules, etc. Knowing how to apply all of these changes is quite the challenge for tax filers this year. So if you have never consulted with a tax professional, this might be a good year to start – especially if you have had a life change.* But working with a professional isn’t always a necessity. Follow the flow chart below to see how your 2010 taxes might need to be handled.

It may be too late for you to take advantage of planning for 2010 if you have already filed, but it’s not too late – or too early – to begin taking advantage of planning for tax year 2011.  Talk with your Life Planner to determine when Do it Yourself comes to and end and equipping yourself with knowledge begins.

*Life Change- career change, retirement, home purchase or sell, land or business purchase or sell, marital status, new family members, care giving, inheritance, etc.

Securities & Advisory Services offered through VSR Financial Services, Inc., a Registered Investment Adviser and Member FINRA/SIPC. Kennedy Financial Services is independent of VSR Financial Services, Inc. VSR does not provide tax or legal advice.