Filing taxes is no cakewalk. In fact, many people could easily get overwhelmed by taking on the process on their own. To be fair though, you might succeed on your own if you are simply filling out a W-2. But if your tax return is more complex than just a W-2, it implies that you need to hire an expert to help you out. For example, choosing to hire a certified public accountant will save you a lot of time, money, and stress.
Hiring a CPA If You Own a Business
Keep in mind that if you have a business or side investment, you likely will face possible tax write-offs. While it could be impossible for you to go through the process smoothly, you will find it convenient if you have someone by your side who has the expertise. Even though you might consider your business venture or investment as a small one, it does not change the fact that you still will benefit from the services of an accountant, especially with regards to your 1099s.
Perhaps the simplest and most straightforward reason to work with an expert in taxes like an accountant is that you do not want to be in trouble with the IRS. The issue with the government agency could be as simple as the IRS calling you for a substantiation of your expenses right after buying a new car or house. Yes, you can always search for information online on how to make that letter, but keep in mind that the slightest mistake could put you in trouble. To prevent the possibility of sending the IRS the wrong message or information, all you must do is hire an expert like a CPA. The most obvious reason why you should work with a tax expert like an accountant is that they understand the language of the IRS.
Planning for Your Kids’ Future
If you happen to have a child who is on his or her way to college and you plan on filling out the Free Application for Federal Student Aid or FAFSA, then tapping the services of an accountant could be instrumental. One of the reasons why you need the assistance of certified public accountants is that you do not want to make critical mistakes like putting unwanted asset or income under your kids’ name since it might hurt their chances of getting financial aid.
You Have a Rental Property
Lastly, if you have a real estate investment or rental property, know that filing a tax return may become all too overwhelming if you do it alone. On the other hand, working with a CPA means you have at your disposal a professional who knows a thing or two about figuring out the kinds of deductions you could get, something you are not even aware of.