When income tax filing season comes around, most people dread it. Tax returns are difficult to fill out. This is where a tax preparer comes in. The question to ask, however, is whether a tax preparer is worth it. Here are some circumstances where you might need a tax specialist.
Itemized Deductions
If claiming itemized deductions is right for your specific situation, you can deduct these expenses on your tax forms.
- Mortgage interest
- Investment interest expense
- Medical expenses
- Property, state and income taxes
- Investment interest expense
- Miscellaneous deductions
As you can guess, deductions can get complicated. What counts as a deduction? What doesn’t count as a deduction? This is particularly confusing when you get into miscellaneous deductions. These expenses may be unreimbursed business expenses, educational expenses tax preparation fees, a home business and more. Often, when it comes to deductions, this is where people wish they had a preparer to help with tax return filing.
Freelance or Consultants
You have to pay self-employment taxes. If you are a contractor, rather than an employee, then odds are you don’t take taxes out of your paycheck. This doesn’t mean that you have to pay. Instead, it means that you have to pay the self-employment taxes when it comes time for income tax filing.
Filing taxes when you’re self-employed can be complicated. It’s best to have a preparer to help you.
Financial Support
Do you support someone with your income? If you supply someone with financial support then odds are that person will count as a dependent on your taxes. The only time that this might not work is if you have a friend or relative who isn’t your direct descendent. To find out who counts as a dependent, tax specialists can help.
No one enjoys tax return filing season. This time of year is stressful but with the right knowledge and the right help from a tax preparer, it’s not so hard.