The Advantages of Hiring a Professional Tax Preparer
Even the words ‘Tax Season’ can be enough to give anyone a headache! Fortunately, you do not need to face tax season alone. Hiring a tax professional can be invaluable to you especially if your situation has recently changed or is complex.
Federal tax law is adjusted every year, making it difficult for an average taxpayer to keep up to date with all the changes, and to understand how to apply these changes to their own tax situation.
A professional tax preparer works hard to keep up to date with all adjustments to tax law, both federal and state, making it advantageous to the taxpayer to hire someone with such an accurate knowledge base.
Deductions and Credits
With extensive knowledge and experience, a professional tax preparer will be able to assist you in finding little known deductions or credits, that you may be unaware you qualify for.
Where you may be eligible for several deductions and/or credits, and yet only be allowed to use one, your tax preparer will have the knowledge to accurately calculate which deduction and/or credit would be the best choice to minimize your tax liability.
Facing an IRS audit alone can be tremendously difficult and stressful. If you are audited, it might be tempting to answer the IRS yourself. It is strongly recommended that even the initial response to an IRS audit inquiry come from a tax attorney.
You can communicate confidentially with a tax attorney before the response to the IRS is prepared to give you the best chance of a “no change” letter from the IRS at the conclusion of the audit.
Did you get married or divorced in the past year? Did you have a child? Adopt? Or have you recently lost your spouse? These changes in situation can dramatically change your filing status and exemptions, deductions and credits you may be entitled to.
If you are a widow(er) your status may change not only for the year in which you lost your spouse, but for a specific time period after. Determining the best and most tax advantageous filing status takes special knowledge of tax law and time-sensitive dates.
Your professional tax preparer would be able to determine the best way forward.
Child in College?
Is your child in college? Your tax preparer can assist you in determining how to claim your child under the age of 24, if they are still in full-time education.
Determining how to properly claim older children, especially if they have income either in the form of wages or investment income, requires in-depth knowledge of ever-changing tax law.
If you have bought or sold any real estate, or have invested in rental property, a tax professional can assist you to make the most of the credits and interest deductions available to you.
If your home or property has been affected by a fire, flood, earthquake or other natural disaster, your tax preparer can assist you to take advantage of relief provisions and elections with regard to replacement property and any gain or loss incurred.
Starting a New Business
Starting a new business is an exciting time for anyone, however there are tax implications that can be difficult to understand. A tax preparer will help you navigate the complex world of business deductions, expenses, insurances, how to properly report your income, accurately calculate self-employment tax and paying estimated taxes.
If you have started a new business, large or small, it would be wise to seek professional tax advice and assistance in preparing your taxes to ensure accuracy and to take advantage of your tax preparer’s knowledge to utilize all allowable deductions and credits to minimize your tax liability.
Indeed, hiring a Professional Tax Preparer to prepare and file your taxes, will ease the stress and burden of tax season, and leave you with peace of mind and confidence in your financial future.