No one enjoys doing their taxes, but paying someone to do your taxes often seems just as odious. Particularly if you’re looking at the possibility of needing to pay additional taxes with your return, the idea of paying someone to prepare the return itself seems like pouring salt on your wound. What is worth remembering is that there’s a number of factors that can complicate your taxes significantly, making professional assistance not only a simpler option, but also a more cost-effective one.
Tax Code Changes - Effective this year, there were a number of changes made to the US tax code which change the deductions you may be able to claim. The standard deduction increased, but certain itemized deductions were removed. Personal exemptions, which allowed you to take an exemption for yourself, before taking exemptions for your dependents. While this is supposed to be replaced by the doubling of the standard deduction, this may cause a tax burden increase for some families. Several other deductions were changed or removed as well. A tax professional will help you navigate these changes and how they can affect your current tax situation.
App income - Services like Uber, Instacart, DoorDash, and others are great for offering flexibility for those of us who use them for bringing in extra cash around working a more traditional job or even instead of one. What you may not realize, however, is that this income must be taxed just like with more traditional employment. Those taxes become more complicated because these services usually do not withhold taxes, leaving you to pay not just income taxes but also social security tax. Depending on how much income you made from your app income, you may have been required to file quarterly tax returns. If these filings were not made, there will be penalties that you may face. A tax professional will help you make sure your records are correctly filed, and if you missed the previous filings, a professional will help rectify the situation and put you in the best possible legal situation in the circumstances. They also can help make sure you are positioned to correct your filings going forward.
Time - One of the biggest benefits of using a tax professional is time. Organizing and filing your tax returns takes a significant amount of time. The practice and experience that a professional brings to bear on your taxes means they’ll be able to not only complete your return with better accuracy but also efficiency. It takes most Americans on average 13 hours to complete their tax returns. While you will still need to collect your documents, a tax professional can help with the rest, taking the burden of time and stress off of your plate.
Regardless of which reason applies to you, hiring a tax professional can help make the job of tax preparation a process that includes less dread and stress. Call today to schedule time to ask about how we can best help you.