Friday 1 July 2022

Four Reasons Why You Need Help with Your Taxes This Year

When it comes to filing tax returns, there are two options that you can select. You can either file your own taxes using tax software and the IRS website or hire a tax professional to do the work for you. Doing it yourself won’t you cost you anything but it will require time and patience. Working with a tax preparer will require you to part with a buck or more. 


Only three professionals are qualified to assist you with your taxes; certified public accountants (CPAs), tax lawyers and verified IRS agents. This article will offer four reasons why you should find someone to help you with your taxes this year. 


You Have Little Experience Doing Taxes


If, you have no experience handling tax forms, you may want to hire a tax professional. Otherwise, you might itemize the wrong deductions or submit the wrong tax forms. 


Tax professionals not only have all the knowledge and resources to file taxes. They also know the tax codes and can alert you to something you are likely to miss when filing your returns. For example, professionals can tell you when you have outstanding tax debt and help connect you to reliable and credible tax relief services


You recently Purchased Rental Property


Filing taxes often becomes more complex when you own rental property. You need to not only know the rules governing depreciation of rental property but also the process of claiming losses arising from rental activities. 


Therefore, if you bought your first house during this tax year, you most likely will need help with your taxes. A tax preparer can help ensure you itemize all deductions and claim all the losses you are entitled to. 


You Don’t have the Time


According to data from the IRS, the average individual spends roughly seven hours gathering receipts and documents and filing their returns. In the case of a business, it may take up to 20 hours. 


If you can't devote this amount of time to doing your taxes, consider going for a tax professional. It may cost you a couple of hundred dollars, but you'll save time best devoted to other essential things in your business or life. 


You Recently Went through a Major Life Change


Any major changes occurring in your life, for example, getting married, getting divorced or having a baby, can affect your tax filing status. You may want to hire a tax professional in the first tax year when you experience that major change to ensure you claim the right deductions and attach the right forms to your returns. 


Final Thoughts


The decision to hire a tax professional or not depends on your situation. The more complex your tax filing may be, the better off you are working with a tax preparer. Tax professionals will help save you time and prevent any error that may occur, when filing taxes yourself.

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