Tax season is a massive headache for millions of people in the United States, and you need to look no further than the nearly $100 billion the IRS collected in unpaid taxes in 2022. You’re taking a risk when you decide to handle your taxes independently, and you’re throwing money away using tax software that neglects to inform you of the credits and deductions you qualify for.
Finding the best path toward filing your taxes without getting audited and receiving more money on your return sounds like a pipe dream. The reality is that tax solutions services have the experience and knowledge to help you avoid tax debt.
The good news is that you’ve discovered the perfect guide to learn more about the signs you need to hire a tax expert for your personal or business taxes. Continue reading to find the best tax service today!
Time Is Short
Filing taxes is a stressful process with ample time. When you lack time to file taxes and the deadline draws closer, sorting and sending in your taxes feels insurmountable. You’re more likely to rush, increasing the odds of making mistakes.
Hiring tax solutions services is wise if you feel like you’re amid a time crunch. The experts will organize and file your taxes on your behalf. You can relax and focus on other aspects of your life while breathing easily while your taxes get filed.
Filing taxes independently isn’t impossible, but it’s frustrating and time-consuming. Hiring a tax expert will save you hours of your life. It’s the best option if you’re short on time or patience with your personal taxes.
You Created a Company
Creating a company is another sign that you should consider hiring tax solutions services. Hiring a tax expert is beneficial when filing business taxes for the first time. The accountant will guide you through the process and look for deductions and credits your small business qualifies for.
You’ll also have a prepared return as a study guide for the following year’s taxes. It’s the perfect option if you’ve never filed taxes and want a resource to avoid making costly mistakes resulting in tax debt.
The tax specialist will also have the knowledge and experience to know the deductions you qualify for. Moving forward without applying the deductions to your tax filings leaves money on the table.
Most new business owners aren’t experienced with the subtleties of filing business taxes, but an expert will teach you the ins and outs. Their teaching will help you avoid committing tax fraud.
Gig Economy Jobs
If you’re working in the gig economy, filing taxes can be a nightmare the first time. Working as an Uber driver, freelance writer, or virtual assistant as a side hustle will create a confusing tax filing season. Many of these individuals receive a 1099-MISC tax form from their gig work and need help figuring out how to proceed.
Tax solution services will know the proper steps to take when filing your taxes to help you avoid penalties and audits. The 1099-MISC is used to report income made from performing contract work. Many people new to the gig economy neglect to pay quarterly estimated taxes to the IRS.
It’s also standard for gig economy workers to fail to keep track of business expenses as the year passes. Your certified tax specialist will know how to sort your taxes and help you get the maximum return.
You Had a Major Life Event
Taxes are the furthest thing from most peoples’ minds when significant life events occur. Events like marriage, the birth of a child, or starting a new job affect the money you must report to the IRS when filing taxes. It’s best to handle your taxes in advance when one of these life milestones is approaching.
If you’re getting married before tax season, work with tax solutions services to learn about the benefits of filing a W4 with your spouse. Working with your employer will ensure the proper amount of money is withheld for taxes based on your changed filing status.
Schedule a meeting with an experienced accountant if you know a significant life event is approaching. They’ll guide you through the changes and help you avoid making mistakes when filing.
You File Multiple State Returns
Moving is another life event that changes the process of filing your taxes during tax season. Depending on the timing of your move, you may owe taxes in both states. While some tax software services can help you with filing, some moves provide additional complexities that increase the risk of making a mistake.
A job requiring travel to different states will create unique challenges when filing taxes. Tax experts will know which states have a right to your income and help you file taxes with each. If you fail to file taxes with a state, they have unlimited time to audit your finances.
You Sold or Purchased a House
Real estate transactions play a significant role in determining how to file your taxes during tax season. Tax software will likely cause you to miss deductions that could put substantial money in your pocket. It’s also possible you’ll miss out on these deductions if you choose to file your taxes without help.
The closing statement on the real estate transaction contains several deductions you can use to benefit during tax season. Selling a home offers the chance to deduct the first $250,000 you made filing as a single filer and up to $500,000 when filing jointly with a spouse.
Sales exceeding $500,000 will require help from tax solutions services to find loopholes, credits, and deductions you qualify for. The proper guidance can save you thousands of dollars. Consider working with these tax settlement companies if you need help paying your taxes to the IRS.
You Own a Rental Property
Real estate investments and rental properties are challenging to account for when filing your personal taxes. The laws regulating these transactions are complex, and navigating them without help from a tax specialist is risky.
Starting an Airbnb or purchasing a multi-family rented unit complicates the filing process. Working with an experienced professional is the best option to avoid costly mistakes. They’ll know the deductions and credits you qualify for to help you save more money.
Multiple Financial Accounts
When tax season arrives, multiple investment or brokerage accounts create a confusing and overwhelming situation. Each account will send you a tax form you’ll need to use when filing your personal taxes. Handling this part of the process alone is a recipe for frustration.
The best path forward is to seek help from tax solutions services. These pros will help you sort through each form and report your investment income.
They’ll speed up the process and use special software to ensure no errors before you send your taxes to the IRS. It’s a situation where you’ll be much happier paying someone else to handle these frustrating aspects of filing taxes.
You Got a Divorce
A divorce is another significant life event that changes your tax filing situation. It’s possible to file your taxes without help, but it’s advisable to seek professional assistance the first time you file after the divorce becomes official. The situation becomes more complex if you have children or dependents with your ex-spouse.
Determining who claims the children as dependents can become a point of contention. Many divorced taxpayers end up facing audits from the IRS to determine if they’re attempting to use the divorce to commit tax fraud.
Parents who share custody of the children will further muddle the waters. Avoid making costly mistakes by hiring tax solutions services to sort through the confusion and assist you with filing your taxes with the IRS and state government. They’ll help you determine which parent has primary custody.
You Have a Nanny
Hiring a nanny is an excellent way to get help raising your children and helping you to enjoy a work-life balance. It’s also a one-way ticket toward a headache when filing taxes during the following season. If you know you’re hiring a nanny or house help soon, meet with your accountant or tax specialist.
After hiring the nanny, you must take specific steps to avoid facing tax debt and extensive penalties. Getting an employer identification number is an excellent step toward avoiding penalties and audits when filing personal or business taxes.
You may also need to withhold Social Security and Medicare taxes on the nanny’s behalf. Failure to do so could harm their tax situation and result in significant penalties for both parties. File a Schedule H form with help from your tax specialist to avoid trouble.
Hire Tax Solutions Services This Tax Season
Whether you’re filing personal or business taxes, finding and hiring tax solutions services is an excellent investment. Knowing the signs that you need tax filing assistance will help you save money through deductions and credits.
Hire a tax specialist if you have significant life events on the horizon. It’s also beneficial if you’ve purchased or sold a home during the most recent tax season.
Filing business taxes with help from a professional can save you thousands of dollars annually. Read more of our Business guides and articles for beneficial tax filing tips today!
