When most of us have health related issues, or simply want to remain healthy, we seek the advice of a doctor. Your health is something that cannot be taken lightly. The same holds true for your personal income taxes. It is extremely important that your tax returns are prepared properly. It can make the difference of a healthy tax refund, or a notification from the Internal Revenue Service that there is a problem. Given the importance of this matter, it is surprising that some people decide to prepare their own tax returns.
They are taking unnecessary risks that can certainly be avoided.
The following information will provide you with the top three reasons why you should hire a Certified Public Accountant (CPA) to prepare your personal tax returns.
Hiring A Certified Public Accountant To Prepare Your Tax Returns Will Save Money
Many people that prepare their own tax returns do so because they are under the false belief that they are saving money. Why pay a professional, when you can perform the task yourself right? Not exactly. It makes good financial sense to utilize methods for saving money in your personal life. That being said, preparing your own yearly taxes is not something that actually accomplishes this as you may not know many rules of the tax code. In fact, it can cost you more money than hiring a CPA to prepare your taxes.
A professional accountant is far more qualified to discover deductions that will either produce a larger tax refund or help save taxes especially if you are self-employed 1099 independent contractor. The additional money that you will receive in your refund check or the money that your Certified Public Accountant will save you from paying will more than make up for their fee.
Hiring A Certified Public Accountant To Prepare Your Tax Returns Will Save Time
Hiring a CPA to prepare your taxes will save you more than money. It will also save you a considerable amount of time. On average, it takes a non-professional approximately ten (10) hours to prepare his or her own income tax documents. That is a considerable amount of time that could be spent doing something else. On the other hand, meeting with your Certified Public Accountant should only take about an hour. You will drop off your tax documents, answer a few questions, and be on your way. The CPA will then perform all of the work for you. Just imagine what you can do with that extra nine (9) hours.
Hiring A Certified Public Accountant To Prepare Your Tax Returns Will Provide You With Peace Of Mind
Last but certainly not least, a Certified Public Accountant is up to date on all of the current tax laws. It is a big part of their job. These laws can change on a year-to-year basis and are extremely difficult to keep track of unless you are a professional. People that prepare their own taxes are always at risk of missing something important. This can lead to an audit by the Internal Revenue Service, which is something that nobody wants to experience.
When you hire a CPA to prepare your taxes, it will all but eliminate the mistakes that get taxpayers into trouble.
In conclusion, hiring a professional to prepare your tax returns will more than pay for itself in the money that you save, the time that you save, and the peace of mind that you will experience.