Should I Hire A CPA To Do My Taxes?
Tax season can be a frustrating and troublesome time for many, especially if you own a small business or are faced with complicated tax returns. If your increasingly complex finances are taking up more and more of your time and money, it may be wise to hire a CPA to do your taxes. CPAs have undergone rigorous education and testing to earn the trusted reputation that they have. Their experience, qualifications and broad knowledge about the tax system may save you hundreds, if not thousands, of dollars at tax time.
Filing your own taxes was probably pretty easy when you were first starting out in your career. A few simple forms and calculations were all it took to complete your tax form and send it in for your refund. However, changes are inevitable, and with each passing year, we are faced with issues that may alter our tax situation. A CPA can maximize your tax return, and understands how to get you the largest refund – or minimize how much you owe. If you have ever been audited by the IRS or felt unsure about whether you submitted everything correctly, it’s worth finding a CPA whom you can trust to file your tax returns.
Think about any changes that have happened to you in the past year. Even small changes can add up to big refunds; you may not think they matter, but a CPA is trained to look at your financial situation from all possible angles and will most likely catch something you might miss on your own. Perhaps you have bought or started a business or entered into a partnership. Do you work from home now? What about your spouse? Does he or she work from home now? A CPA can give you sound advice on all financial aspects of your business and guide you through some of the more complex issues you may be facing.
Other questions to consider are:
- Have you bought or sold a home?
- Have you gotten married or divorced?
- Have you had a baby or adopted a child? A CPA can help you navigate the vast array of investment options for saving for college and can explain child credit, child care credit and earned income credit.
- Have you experienced the death of your spouse?
- Do you have a retirement plan, such as a Keogh plan, pension, annuity or IRA?
- Have you acquired any rental property or are you earning rental income?
- Are you ready to begin planning your estate?
- Have you experienced windfalls such as a large inheritance, successful stock trading or real estate profits?
These are just a few questions to think about before tax season begins. While the questions above are certainly not all-inclusive, if you answered “yes” to even one of them, it may be a good idea to hire a CPA for your tax returns this year. While it will cost money to use a professional, the money and time you save, as well as the peace of mind that your taxes will be done correctly, will be well worth it.