Three Signs You Should Ditch The Software And Hire A Professional Tax Preparer
With the rise in online software, many people are choosing to do their tax returns on their own, but you can get a lot of value by paying a tax preparer to help you. Should you work with a professional or handle your own tax prep? Ultimately, the answer varies, but here are three signs you should consider working with a tax preparation service.
1. You Think You Should Qualify for a Lower Tax Liability
Tax laws vary a lot, and every taxpayer has a unique situation. For instance, two people with the same income may pay different amounts in taxes depending on the number of deductions they can claim.
However, if you often talk to people with about the same income as you and they always seem to have a lower tax bill than you, you should contact a professional.
You may be missing a small deduction or simply entering the numbers incorrectly in part of your return. A professional can help you assess the situation and ensure you qualify for the lowest tax liability possible.
2. Changes in Your Situation Have Complicated Your Return
Every year, people go through a range of changes, and some of these changes may complicate your return. Just because doing your own taxes worked in the past does not mean that you should continue that trend.
If you have experienced any of the following changes, you may want to hire a tax prep professional to help you:
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Purchased a business.
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Hired new employees or contractors for your business.
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Hire employees for your home, such as a nanny.
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Earned income as an independent contractor
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Bought a new home.
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Invested in property.
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Sold capital assets such as stocks, bonds, or property.
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Lost a family member and need to file a final return after their death.
3. You Have a Rare Tax Situation.
There are a lot of rare tax situations that can require professional help. To give you an example, imagine you are a landowner with a conservation easement, and you donate the easement. In certain states, you can earn tax credits that you can sell.
However, if you sell the credits, you may have to report a capital gain. These types of rare situations are nearly impossible to deal with using software on your own, but a professional tax preparer can help you.
To learn more about if professional tax prep is right for you, contact a tax preparer directly. Ask them to look at your last return and give you an overview of how they can help you.
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