With so many tax programs available many people wonder if there is any reason to hire a tax professional to help them with their taxes. Although there are circumstances where you can do it on your own, there are some instances where it is best to hire a professional to help you prepare your taxes. Here are some reasons to hire a professional.
1. You are Self-Employed
Being self-employed has many advantages. However, many people who are self-employed find it a burden during tax season. This is because filing taxes for the self-employed can be confusing. In addition, if you don't fully understand what you are doing, you could easily overpay on your taxes. This is why hiring a professional is the best way to ensure that you save as much money as possible when self-employed.
Something that the tax professional will help you with is determining what you can deduct in regards to your business. In many cases, you can deduct your home office, office supplies, rent that you pay at an office or building, gas, lunches with clients and so forth. By hiring a professional, you can save money.
2. You Have a Lot of Investment Income
Another reason to hire a professional is if you have a lot of investment income. Many people only have income for work they did throughout the year. This is taxed differently than investments and capital gains. If you don't disclose your investment income and interest that you have earned on certain accounts, you could get in trouble with the IRS. You don't want to commit tax fraud unknowingly by not understanding how to disclose your investment income. In addition, a tax professional can help you know things that you can do throughout the year to lessen your tax burden come tax season.
3. You are Itemizing Your Deductions
Lastly, there are two ways to take deductions. You can either take a standard deduction, which simply gives you a number for your deductions, or you can itemize your deductions. This means that you go through and calculate how much you paid in charitable donations, medical expenses, education costs, moving expenses and so much more. Itemizing your deductions can save you a lot of money if you do it right, but it can also be very confusing. This is why using a tax professional could be the best thing for you if you choose this route.
These are just a few reasons why you should hire a tax professional, such as The Callen Accounting Group, PLLC, to do your taxes.Share
8 February 2016
I have always dreamed of opening my own beauty salon, but never seemed to have the money to make that dream come true. I decided that it was time for me to hire an accountant to help me create a savings plan and to assist me in calculating how much money I would need to open my salon. I found out all about what it takes to start a business and a lot of great advice about what I can do to save the money I need to make it happen. If owning your own business is something you are dreaming of, my blog can help.