100+ Years of Combined Tax Resolution Experience.
As April 18th gets closer and closer, so does the big decision: should you do your own taxes with online software, or should you grit your teeth and hire a professional accountant?
We’re not about to make that decision for you.
But we can tell you the good things and the bad things about hiring a pro. After that, it’s up to you.
You save time. And time is money. The average taxpayer spends 13 hours a year untangling their taxes – and for the average business owner, that number goes up to 24 hours or more. The more forms and schedules you have to fill out, the longer the process takes. (Keeping shoddy records slows you down even further.) Depending on how highly you value your time, it could be a significant loss of cash.
A professional works fast and handles all your taxes in a few hours. Sure, the fee is higher per hour, but the job gets done a lot faster.
You’re less likely to get audited if you use a pro. The tax code changes every year, and each year there’s something new for you to get wrong. Fortunately, the accountant knows the ins and outs of all these rules, and they’ll be able to set you straight.
If you’ve had any major life changes this year – like starting a business, making major investments, buying real estate, getting married or divorced, or moving – you’re far better off biting the bullet and visiting your accountant. Otherwise, you may find yourself on the receiving end of some nasty mail from the IRS.
The pro may find “Easter Egg” deductions that you’d have missed on your own. The tax pros are smart! They may find deductions or credits that leave you with a little extra money at the end of the year. Now that’s an encouraging thought.
Your “pro time” is deductible. All your tax preparation fees can be deducted as miscellaneous expenses on Form 1040, as long as the sum of all your deductions exceeds 2% of your adjusted gross income. Note: In order to get this perk, you will have to itemize your deductions – more about that here.
Pros cost money. About $273 for an average session – more, if you spend more hours and have more problems. But you have to weigh the initial “ouch” factor against the very real benefits of having your taxes prepared by someone who knows what they’re doing.
All pros are not equal. Sadly, some accountants are unqualified or incompetent. Do your research and make sure the one you choose is registered with the IRS and has a successful track record.
You have to plan ahead. Those slots fill up fast! If you wait until March or April to make a reservation you may be stuck doing your own taxes online. Start researching accountants in your area and book a slot now – because the good ones will go quickly.
No matter what you decide, do your research. And remember – we’ll always be here to help you if you run into trouble.
If you have any questions about preparing your taxes, give us a call at 844-841-9857, or schedule a free consultation here.
We’re in an era in which more small businesses are launching like wildfire. Many people find starting a small business of their own as easy as a piece of cake. However, most of the time, what they fail to prioritize are some of the major players involved in smoothly operating their small business. A...
Do you know why most married taxpayers go for filing joint tax returns? It’s actually because of the benefits that it offers. But with joint tax returns, both the filers hold the responsibility for the tax bill or any penalties and interest that arise from it. Both are legally responsible for the entire liability, even...
What if you owe so much in taxes that you can’t see your way out of it? If you owe back taxes, you might not think there is a way you can ever pay things off. And the more those back taxes have accumulated, the deeper the hole. But that doesn’t mean you can’t dig...
Tax Audits are one of the most terrifying things a taxpayer can endure. Most taxpayers don’t know what being audited by the IRS entails and usually don’t know what to do if they are audited. IRS audits can be confusing to most taxpayers as most don’t know what the IRS is looking for when they...
Receiving a letter from the IRS can be intimidating, especially if you’re unsure what the notice is for or what to do next. Fortunately, many notices are nothing to worry about and are purely informative. Below, we look at everything you need to do — and what not to do — after getting a notice from the...
The Internal Revenue Service (IRS) is increasing audits on cannabis businesses — the agency is on a mission to ensure that cannabis businesses adhere to the tax code. Unfortunately, cannabis companies must comply with more strict tax laws than other businesses and can claim fewer deductions. Most business owners don’t realize this or aren’t able to meet the reporting responsibilities on their own. If you own a business in...