4 Reasons To Hire a Professional In Tax Preparation to File Your Return
The tax season begins shortly after the new year and ends on April 15th every year. This gives you three months to get your taxes prepared and filed. Many people today are filing their own tax returns. According to Next Gen Personal Finance, over 54 million Americans prepare their own taxes, which isn’t always the best idea. If you are single, have no children, don’t own a home, and get a W-2 from your employer, your return is considered simple, and filing your own return will be easy.
However, if you own your own business, have children, investments or are married, your return will be more complex, and it is best to work with a tax preparation expert. There are several reasons why complicated returns should be filed by a professional.
#1 The Tax Laws Are Always Changing
Understanding tax law isn’t easy. Even if you made some sense of last year’s tax codes, things might have changed. Tax professionals are often required to take at least 24 hours of continued education every year to prepare for the upcoming tax season. If a professional in tax preparation has to take classes, chances are you won’t know about or understand the new tax laws, and you could make a mistake if you prepare your return yourself.
If you have a professional prepare your tax return, you can be sure the new tax laws have been applied and your return is correct.
#2 You Want the Best Possible Return or the Lowest Possible Tax Bill
Everyone’s situation is different; some people expect a return, and some will owe the IRS money. If you expect a return, you want the biggest return possible. The best way to do this is by working with a tax preparation expert. A professional will ensure you get all the tax credits you are eligible for, ensuring a higher return.
If you expect to owe the IRS money, a tax professional can apply all deductions that apply to your situation, keeping your IRS bill down.
#3 Save Yourself Time and Stress
Filing your own tax return can be time-consuming and stressful. Most online tax preparation sites walk you through the process by asking questions, but it can still take an hour or two to prepare your return. If you have a more complicated return, it can take even longer. In addition, preparing your own return can be stressful. Worrying you will make a mistake or won’t complete your return by April 15th can cause unnecessary stress because hiring a tax preparation professional can save time and prevent undue stress.
#4 Reduce the Risk of An Audit
According to the IRS, approximately 300,000 returns are audited every year. Audits are scary and stressful, and if you want to avoid an audit, you shouldn’t file your own return. A tax professional understands what can be deducted and what can’t, as well as tax credits available to you and those you don’t qualify for. If you don’t understand tax law, you could make a mistake, triggering an audit.
If for some reason, you are audited, your tax professional will be there with you all the way.
When you receive the documents to file your return, it is best to call a professional in tax preparation. Leaving your return to a professional will ensure the return is filed correctly, and you will get the maximum return possible. If you owe the IRS money, a professional can ensure you are required to pay the least amount possible.
