Is It Time You Hired a Tax Professional? – Professional Tax Services

Preparing tax returns can be time-consuming and complicated, especially if you have a complex financial situation. A tax professional can take care of the entire process, save you time, reduce stress, and find ways to lower your tax obligations in ways that you might not have recognized if you prepared your taxes yourself. For example, misclassifying items can increase your tax bill due to over-reporting income. Also, people sometimes miss the opportunity to depreciate their business, equipment, or rental properties.
We strongly suggest you hire a tax professional if you:
• are self-employed or have freelance income
• have multiple streams of income, such as investments and rental properties, or have a side business or more than one business
• have capital gains or have made several cryptocurrency transactions
• have had major life changes, such as recently getting married or divorced, or buying or selling a home
• have foreign income accounts
• have trust, estate, or inheritance issues, or
• have an S-corp or K-1s.
A tax professional can prevent you from making mistakes that could trigger an audit due to underpaying your taxes or reducing your tax obligation by uncovering valuable credits or deductions. Typical deductions and credits that are missed include home office deductions, education credits, energy-efficiency credits, child and dependent care credits, medical deductions, mileage and vehicle expense deductions, and retirement contribution credits. Should IRS issues arise, your professional can help you by speaking to the IRS on your behalf.
Tax professionals can help you choose your best filing strategy. This includes choosing the right filing status (head of household or single), whether you should file jointly or separately if you are married, and whether to itemize or use the standard deduction.
Maximizing your retirement tax advantages is crucial. Your professional may recommend 401 (k) or IRA contributions, or Roth or traditional strategies. If you are self-employed, your professional may suggest making contributions to a SEP IRA or Solo-401 (k).
Your tax professional can also help you with tax planning. We offer unlimited complimentary tax planning advice for our clients and recommend our clients take advantage of this.
If you have questions concerning whether you should hire a tax professional, we welcome you to call us.
Professional Tax Services is a locally owned provider serving over 3,700 local residents and businesses. For more information, call 661-259-1967 or visit www.scvprotaxservices.com.