Is the average person intelligent enough to do their own taxes?

Question

Why do so many people have their taxes done by somone else even if they are the 1040EZ or 1040A?

Answer 1

Tax laws are complicated, but most people's taxes don't fall into complicated or ambiguous rules. If you have W-2 income, and maybe some interest, it's not complicated.

Answer 2

Think about this: The tax laws are passed by our elected officials in Washington (I know someone who calls them "Congress Critters"). Of those 535 (435 in the House of Representatives and 100 in the Senate), I've heard that a couple of them at least attempt to prepare their own returns, but most of them either use outside tax experts or somebody on their staff. That's right, the people who create our tax system can't do their own returns.

That said, it's not necessarily the intelligence of the tax preparer, it's the experience.

Another factor is time. I have the knowledge to iron my own dress shirts, but I would rather pay somebody else (the local dry cleaners) to handle that task because it would take me long enough for it to be worthwhile paying for them to do it.

Answer 3

It's not the intelligence, it's the confidence. Most people could handle it, but they feel that a professional is going to do better, or (more importantly) prevent a mistake that would cause an audit.

The truth is, my 9 year old could handle the 1040ez

Answer 4

Tax laws in the US are too complicated to do on your own. If you try to, many times you end up in trouble with the tax office, which is why Americans tend to hire people to prepare their taxes. I'm dual Aussie citizen and American citizen.

In Australia, the tax system and tax forms are straight forward and a lot of people can manage to do their taxes on their own The US system has much too many laws, it's exhausting to try and interpret it on your own.

Answer 5

The instructions are there, it is just how much does the average taxpayer want to get frazzled. It isn't intelligence as much as expertise. Could I amputate my own finger, probably, but I would prefer someone who had medical training. Can I glue pvc pipes together and call it plumbing? yes......again....

Yes, the 1040-EZ is soooo easy, but I did a tax return for a man 40 years old, who has been doing his own taxes for years and has never taken the EIC and believe me he is eligible.


good luck

Answer 6

No. Everyone seems to have their own interpretation of tax rules. If they take it to a tax professional they are less likely to have problems later on.

Answer 7

Why do people pay someone to wash their car?