Three Situations When You Should Consider Using a Professional Tax Preparation Service
Although software has become increasingly popular for people to figure their income taxes, it is still the case that there is an important need for professional tax services. This is especially true for people in certain situations that make software inadequate. The following are a few situations when having your taxes prepared by a professional is the better choice.
1. There has been a change in your tax filing status
One of the most common changes in a person's life is marriage. Getting married is a major change, and you will need advice on whether to file jointly or separately. Also, if you have been through a divorce, your taxes will likely change dramatically. A professional can file your taxes properly. In addition, if you are a single parent, filing as head of household has significant advantages over filing as single, but understanding the qualifications can be confusing.
2. You are now running a business
Starting your own business can be exciting and a profitable adventure, but the tax implications for your finances can be complex. The way you have your business set up can make matters confusing. A sole proprietorship versus a partnership makes your taxes difficult. In addition, you may have deductions that you are not aware of, but you may be taking deductions that are not legal. It is easy for a new business owner to file their taxes in a way that will raise red flags with the Internal Revenue Service.
3. You need advice on tax strategy
The best way to save on taxes is through tax planning. One of the greatest benefits of using a professional is the advice they can give you on reducing your tax liabilities. With a business, you can learn the savings you can receive for future equipment purchases. You can learn the optimal time to get married, at least from a tax point of view. You may even want to delay a divorce for tax reasons. No one can be expected to know all the tax laws, but a professional can give you advice that will not be found with a software program.
If you have a simple tax filing that you do every year with a paper form, it may be convenient to file your taxes with software. However, these software programs are not putting professional tax preparation services out of business. Taxes are complicated, and you need to consider using one when there has been a change in your life that affects your filing status. You can also contact services like Right Choice Insurance and Taxes Inc if you need advice about your future tax liabilities.
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