Every year, many people are faced with the choice to struggle with their taxes alone, or hire a CPA to prepare them. There are many pros and cons to both situations, but if you are very uncomfortable or stressed out about your taxes, or you have a complex financial situation, it is well worth the money to hire a CPA.
What is a CPA?
CPA stands for certified public accountant. To become licensed, CPAs must pass the highly challenging exam, and obtain licensing approval in one of the US states. CPAs are used for many aspects of financial advising, one of the most prominent being accounting. CPAs work in both the public and private sector, but the CPA that you will be working with to file your taxes is a public accountant. There are many different options for CPAs, depending on where you live. Whether you choose a large firm or a small independent accountant depends on your personal situation and budget.
Why should I avoid filing taxes on my own?
Many people opt to file taxes on their own because they believe it will save them money. CPAs do charge a fee, and many consumers prefer to avoid that fee. However, this choice can actually cost you more money in the long run. This is because you are more likely to make mistakes, which could potentially cost you money in fines if you happen to be audited. You also may miss legitimate opportunities to claim more money on your tax return. If you work with a CPA, you can avoid making mistakes and potentially save money in the long run.
However, there are some circumstances where the advice of a CPA may not be necessary. If you are single and only have one salaried or hourly job, then filing your taxes should be fairly simple. You most likely will not need the help of a CPA in this case. You can use an online tax software to helptaxs you with your taxes.
What are the benefits of working with a CPA?
There are many benefits to working with a CPA during tax season. If you are on the fence about seeking tax advice, consider these reasons to contact a CPA.
As previously mentioned, you can save a substantial amount of money by working with a CPA, especially if you have a complex financial situation. This is because they have extensive knowledge of US tax code, and will be able to spot opportunities to increase the amount of your tax return that you might not have seen coming. For example, you can claim some work-related expenses on your return, and your CPA can help you better identify these. They can also help you avoid making mistakes that would limit the amount of money you get back on your return.
CPAs help you prepare your taxes much more quickly, and with less stress. The American tax system is extremely complex, and many people find themselves completely overwhelmed when April 15th rolls around each year. A CPA can eliminate any worries that you may have. CPAs will also be able to prepare your taxes much more quickly than you would be able to. Not only are they highly experienced in tax preparation, but they also have access to some of the most powerful tax software around. This way, you don’t have to take time out of your busy schedule to work on your taxes, and you can spend more of your precious time doing things that are important to you.
CPAs are highly trained in tax code, so they will be able to answer any questions you may have. They can help you better understand why your return is a certain amount, why you should claim certain exemptions, and why certain tax rules are in place. Better comprehension of the tax system will make you feel more confident about your finances in general.
When should I go to a CPA?
There are many signs that you should consult a CPA right away when preparing taxes. In December or January, start to analyze your finances and get an idea of what issues you will need to deal with when preparing your taxes. If you notice any of the following, that means it’s time to consult with a CPA.
If you are recently married or divorced, or you have recently had a child, it will be helpful to consult a CPA about these new changes in your life and how they affect your filing status.
If you have multiple investments or savings accounts, these can affect your taxes. Working with a CPA will help save you money. It’s also important to work with a CPA if your income is in the highest tax bracket – your chances of getting audited are much higher.
If you work on a freelance basis or have multiple jobs, it can also be very helpful to consult a CPA. In these situations, it can be very difficult to know what claims you can make, and which freelance projects should be taxed.
If you are making any major purchases or have large, complicated expenses, such as medical bills, your CPA can help you sort these out.
Finally, if your taxes are causing you high levels of stress or panic, and you can afford to see a CPA, that expense will be worth it in the level of stress that it saves you.
How do I find a CPA?
Chances are, there are plenty of CPAs in your area to choose one. To find the best fit for you, do a quick internet search to find a few potential options, and then compare them to make a final decision. Be sure to consider factors such as level of experience and cost of services. It can also help to meet with CPAs in person if you are still struggling to make a decision. No matter which CPA you choose for your taxes, you will be thankful for the reduced stress that a tax accountant can provide you with.
If you are looking for a CPA in San Diego, visit Abbo Tax CPA.
