An expert resource like Waters Hardy can provide a long list of accounting services for individuals and companies. However, one of the most important is professional tax help during the height of tax season.
With 2023 ending and the April 15, 2024, tax deadline a few months away, now is the time to consider whether enlisting income tax professional expertise is the best move for your unique financial situation.
If your annual taxes are straightforward, with one source of regular income and minimal deductions or credits to account for, you may feel comfortable self-preparing your annual return. However, if you own a business, work from home, have freelance income, or have a second home or investment property – then 2024 should be the year that you partner with an expert in tax services, whether in Dallas or anywhere in the country. Partnering with a professional can simplify tax planning and yield greater financial rewards.
How Tax Professionals Save Time & Money During Tax Season
There are many benefits to hiring a tax professional to assist with your tax planning, including saving significant time on filing annual returns. Additionally, there are other key benefits to consider.
An estimated 50% of self-prepared returns have at least one error. For example, errors can be a missed field or a miscalculation, and they are so common that the Internal Revenue Service has even compiled an online guide on common mistakes to avoid.
It’s understandable why errors are so common, too. With thousands of fields to fill out – even in online tax preparation platforms – obviously, something may be missed in the calculation and data entry process. However, it’s a professional tax preparer’s job to eliminate errors in your tax return, with careful review and multiple rounds of checks and balances to ensure everything is 100% correct. As a result, you’ll reduce your chances of an audit and have peace of mind that your annual return is accurate.
Can Increase Your Refund or Minimize Taxes Due
One of the significant benefits of hiring a tax professional during tax season is that, in the end, it’s a move that can save you money. A tax professional’s job is to keep track of all aspects of evolving tax laws to ensure that you are not missing any credit or deduction opportunities that may impact your tax return. As a result, they can identify lesser-known situations that can reduce your taxes, resulting in a larger refund, year after year.
Helps You to Avoid an Audit
The Internal Revenue Service (IRS) is more likely to audit some types of annual tax returns than others, such as self-employed individuals, small businesses, or individuals with freelance income or who work from home. A tax professional is aware of these situations, as well as the red flags that can grab the IRS’ attention.
Sometimes, the IRS relies on algorithms or historical data to find deductions or credits on an individual tax return that does not align with the average tax return. (For example, if the average person donates $400 to charities every year, and you suddenly donate $5,000 each year, it’s a number that stands out.)
Tax professionals, however, understand what these averages should be and what may constitute a red flag, and they can help ensure that everything is accounted for. Best of all, if you are randomly selected for an IRS audit, your tax professional will be with you to handle the ensuing process every step of the way.
Helps Develop a Stronger Tax Strategy
Tax laws are constantly changing. For example, the annual tax bracket thresholds tend to increase year after year due to inflation, and 2023 and 2024 are no exception. In addition, the types of expenses that can be deducted may be altered, and your financial situation can change as new goals are created and new milestones are reached.
A tax professional’s job extends well past tax season, and the process of tax planning is a continual endeavor. As such, your tax professional will help you create a better and more comprehensive tax strategy that can be effortlessly implemented all year to save you even more money on your taxes in the years and potential decades ahead.
Scenarios Where Professional Help is Crucial
Anyone who wants to save time and money while enjoying ample peace of mind can benefit from professional tax help from a resource like Waters Hardy. With that being said, there are a few scenarios where professional tax assistance is all but required. These situations include (but are not limited to) the following.
- Freelance income – If you have any freelance or self-employed income of $400 or more, you need to include this on your annual return and potentially make quarterly tax payments.
- If you have a business – Even a side gig can have potential hurdles when it comes to filing your annual return, and a tax expert’s help is needed to navigate this terrain.
- If you have a second home or rental property – Second homes or rental properties have a host of potential credits and deductions, and your tax professional can help you minimize your taxes while ensuring your return is error-free.
- If you have investments – Investment income can be taxed in many ways, and a professional can help ensure that all the potential taxes on your investments are accounted for.
- If you work from home – If you have a home office, you may be eligible for a range of credits and deductions, but attention to detail is key. A tax professional can help ensure that your home office does not raise any red flags to the IRS.
Ready to Learn More? Waters Hardy is Standing By to Help!
Now is the time to get a jumpstart on your 2023 taxes and beyond. Reach out to our team of income tax professionals today to start a conversation about how we can put our decades of experience and expertise to work for your benefit, saving you ample time, money, and stress along the way.