It's tax time again. Before you try to muddle through all of your documents alone, think about hiring a tax service professional. Did you know that around 1 million people get audited each year? While there are many reasons that this might occur, there are several ways to go about avoiding it altogether. Here are a few reasons why a professionally prepared tax return may be a good idea for your taxes.
You Own a Business
Owning a business can add a lot of challenges to your taxes. For example, what kind of business is it? Are you a sole proprietor? Do you have an LLC? What was your gross income? How many deductions do you have? You may even have questions as to if something qualifies as a deduction and, if so, maybe only a percentage is eligible. Tax professionals should be able to answer all of these questions, simplifying the tax process significantly.
You Donate a Lot to Charity
If nonprofits and charity work are your forte, you may need some help to fill out the proper forms. Do not let this money go unnoticed on your tax return; make sure it is all accounted for correctly.
You Bought a Home
Buying or selling a home can come with a lot of baggage. For example, where did you get all of the money for your downpayment? Did you borrow some from a 401(k)? Did you receive a gift from someone? How did you document all of that money? Not to mention taxes and escrow accounts. If you moved from one state to another you may actually have taxes due in both, which can be confusing. Professional help may be exactly what you need in order to get your taxes done on time and correctly.
You Had a Life Event
There are many life events that may make your taxes challenging. Having a baby, getting married/divorced, and adopting (to name a few), all bring certain challenges. For example, did everyone have health insurance? Did the gross income of the home increase? Have you documented and secured everything the way that you should have? Instead of wondering and hoping, you can rest assured things have been done correctly when you work with a professional tax specialist.
In conclusion, the more you do in your personal and professional life, the harder your taxes are. You may not need to hire a professional every year, but some years your taxes may be significantly more challenging than others. For more information about tax services, call a professional near you.