Getting your taxes prepared professionally isn’t cheap, but the benefits can far outweigh the financial cost. Increase your tax season peace of mind-and, possibly, the size of your tax refund-by hiring a tax preparation and resolution expert this year.
With the array of tax preparation software programs on the market, many people are now preparing and filing their own tax returns as a means of saving money. However, there’s still something to be said for turning your tax documents over to a professional, especially if you have a complicated return and want to make sure every “i” is dotted and every “t” is crossed. Hiring an expert for your personal accounting needs can ensure that you finish tax season stress-free, having paid out-and gotten back-just the right amount.
A certified professional tax preparer or accountant in your area will possess not only a thorough knowledge of federal tax laws and requirements, but also an understanding of your particular state tax laws. As an individual, you might have a broad idea of your tax duties, but you may not be aware of certain nuances. Additionally, tax laws can change from year to year, meaning that a process that worked for you last tax season might no longer be valid. Most CPAs and tax preparers attend continuing education courses to stay up to date on any changes to tax policy that will affect their clients, making them able to save you from penalties and fines, and also to maximize your potential refunds.
It may take you hours-even days-to figure out your tax situation on your own, especially if you have multiple sources of income, a complicated family situation, rental properties, income in multiple states, or other less-than-straightforward return scenarios. Meanwhile, a tax preparation expert files returns for multiple clients a day, five days a week, and will be able to quickly make sense of your complex finances. Hiring someone to do your taxes can save you a lot of time, and if you’re in an industry where your time is money, those hours are extremely valuable. One note: When you hire a CPA firm or other tax preparation entity, it’s helpful to organize your financial files before your appointment. If you’ve looked through your documents beforehand, you’ll be better equipped to answer the accountant’s questions as he or she prepares your tax return.
Computer software is not foolproof at finding every possible deduction that’s relevant to your particular situation. A tax specialist, on the other hand, can ask you targeted questions that point toward deductions you might have otherwise missed. The same goes for tax credits: you might not even realize you’re eligible for something that could make a big difference on your return. Also, professional tax preparation fees can be deducted the following year.
Future Tax Help
If you hire a professional tax preparer, you have someone to turn to who knows your situation if you need tax resolution services in the future. If you find yourself struggling with back taxes and tax penalties, you can call your accountant, tax attorney, or paid preparer for advice and assistance in dealing with the IRS. Tax debt issues can snowball, and not having a trusted tax advisor in such a situation will only hinder your financial future.