Just like you would call a plumber when a pipe bursts in your home or a mechanic when your car doesn’t kick over, you should hire a financial expert — a certified public accountant (CPA) —
when filing your personal taxes.
What are top reasons to hire a CPA to do your individual taxes?
Overall, a CPA provides strategic advice, keeps track of changing tax laws and shows you ways to save money.
Preparing your taxes can be a daunting task that involves many questions. Below, we answer some questions about the benefits of having a CPA prepare your taxes.
Why Should a CPA Help Prepare Your Individual Taxes?
CPAs are leaders in financial planning and tax regulations and offer clear direction when it comes to income tax preparation in a wide range of areas, including:
- Complex Situations: CPAs have in-depth tax knowledge at the local, state and federal levels and can advise you when you have complicated tax situations that involve your dependents, investments, or significant assets.
- College Savings: A CPA is trained to see your options when it comes to tax-deferred or tax-free savings as you save for your children’s higher education, or you create a trust for your children.
- Gift Giving: There are many tax advantages when you donate to charitable organizations you may not be aware of without the guidance of a CPA.
- Tax Codes: A CPA is familiar with tax codes that detail the guidelines individuals must follow as they prepare their taxes.
Have You Had A Major Life Change in the Last Year?
Life altering occasions like getting married, having a child or buying a house are some instances that will change your tax bracket. A CPA can determine which exemptions you qualify for to ensure you come forth in the best financial way possible.
Should You Do Your Own Taxes or Hire A CPA?
If you are among those individuals who use software programs to file your own taxes, there is nothing wrong with that, however, because this is not your area of expertise there may be tax matters you are overlooking. A CPA’s trained eye and strategic approach can spot areas of opportunity that will increase your refund.
Can A CPA Help With Your Goals?
Working to pay the bills, buy groceries and other necessities makes sense but you deserve to reap the benefits of your hard work. We’re talking goals. Perhaps your goals are to save enough money to purchase a home, open a new office, or to invest for your children’s higher education and your retirement. No matter what your goals are a CPA can provide you with strategic advice that will benefit you today and your future. A CPA will examine your current and future expenses, as well as your investments to develop a plan that places you in a strong financial position to meet your goals.
How Can a CPA With a Big Ticket Purchase?
If you made a major purchase — like a boat, a house, a car — there is a potential you may have paid more in sales taxes compared to your income taxes. You may not be aware, but the IRS permits taxpayers to deduct either state and local income taxes, or state and local sales taxes. A CPA can investigate this and determine which tax is greater in your situation.
When is the Best Time to Hire a CPA?
Many people start thinking about taxes when they see the tax deadline approaching but any good CPA will tell you preparation and tax planning need to take place throughout the year. This ultimately eliminates stress and any “last-minute preparation” mistakes you may make on your tax form.
A CPA can provide you with year-round tax planning advice that will secure your financial well-being, as well minimize your tax liability for next year.
Related Questions?
What is a Certified Public Accountant (CPA)?
A certified public accountant (CPA) is a trusted financial advisor who can help you plan for and reach your financial goal. Having passed a CPA exam, a CPA is a tax professional They are licensed by a state board and must undergo continuing education each year to maintain their CPA credentials and assure they are on top of new regulations.
What Should You Do If the IRS Contacts You?
If the IRS contacts you about your tax return it is always a good idea to work with a CPA before responding. A CPA understands the language of the IRS and will know exactly what information the IRS is seeking and can provide the information in a clear cut fashion.
Summary
A CPA provides tax and financial strategies to secure your financial situation. As tax experts, a CPA can prepare your taxes so you receive all the deductions and credits you are entitled to.
Tax Avenger Canton MI is a CPA and Tax Firm dedicated to providing exceptional service to our clients. If you are filing individually, starting a business or your business needs tax and accounting services, we can help. Now with our remote filing services, it couldn’t be any easier to file your taxes while you stay safe at home.
Our services include business accounting and payroll services, individual and business tax preparation, tax problem resolution and more! Questions? Call today for a Free Consultation!