Doing Your Taxes? When to Bring in a Professional
Doing your taxes can be a chore, and it’s occasionally worth it to bring in a professional to help. But with all the DIY options out there, when does it make sense to bring in an expert to make sure you’ve filed your taxes correctly?
According to Erica James, a certified public accountant, certified financial planner, and director at Signify Wealth, you should consider paying someone else to do your taxes when you receive money outside of your primary job. This includes money from selling a home or owning a business.
When you receive money outside of work, there are more ways to save on your taxes and more ways you can potentially mess things up. Paying for expert help instead of doing your taxes on your own can help you minimize your current tax bill and avoid a costly audit down the road.
Here are two situations financial experts say should have you considering hiring some tax help:
* You started a business or had a side hustle this year. A tax professional can help your business keep more of its profits by ensuring accuracy and maximizing deductions. Hiring a pro will cost you at least $400, but the expense of tax preparation services can be deducted from your business’s income.
* You experienced a life event that involved a major financial transaction. This includes events such as receiving an inheritance, selling a home or personal property, or experiencing a death in the family. A tax professional can help navigate these complexities and ensure you’re maximizing deductions or credits while staying compliant with tax laws.
In conclusion, investing in expertise is often worth the cost when it adds value and fits your budget. If you’re unsure about how to handle your taxes, consider bringing in a professional to help you navigate the process.