Do you have a very simple tax return? You may be tempted to do your taxes on your own, but an accountant may still be able to save you a significant amount of money. If you're used to doing your taxes year after year, there may be some things that you're simply missing.
1. Your Tax Accountant May Know Things You Don't
The tax code changes every year. Your tax accountant may know about credits and deductions that you don't. Furthermore, your tax accountant may know about some obscure things that you simply missed. Unless you want to spend a lot of time trying to figure out the tax code on your own, it may be best for you to simply hire an accountant. Consider the amount of time you'll save!
2. Your Tax Accountant Can Help You Plan
A tax accountant doesn't just help you figure out how much you owe in taxes (or how much the government owes you). A tax accountant can also help you plan for the future. If you're thinking about buying or selling a house, sending kids to college or making any other financial adjustments, a tax accountant can tell you the best possible way to do these things while still saving money on your taxes.
3. Your Tax Accountant Can Advise You On Business
Do you own your own business? Are you self-employed, or do you have a hobby? Do you rent out a property? If any of these situations are true, a tax accountant can help advise you on the appropriate way to structure your business so you can save money. Many people have alternative income but they may end up taxed significantly on this alternative income if they aren't careful.
4. Your Tax Accountant Can Catch Any Red Flags
There are times when you simply make a mistake. In fact, even automated tax filing systems can make a mistake. Tax accountants can identify red flags quite easily -- things that are unlikely to be accurate or that could even trigger some form of audit. Most people are not experienced enough to catch these red flags, but tax accountants are aware of the most common mistakes that people make in their finances.
It never hurts to consult with a tax accountant. Not only can they help you save money, but they can also help you plan for the future. You may even find that a tax accountant will pay for themselves in time.