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Posted by: Charles P Myrick CPA Posted on: Jun 02 2022 Posted in: wealth building

Why Hire a CPA to Do Your Taxes?

A simple tax return for a child or young adult might not need a professional CPA. Some tax returns are done well using an online app. However, there are many situations when hiring a CPA might save you a lot of money.

Tax laws have gotten complicated in the past years, and professional CPAs keep up with tax law changes and how to use them to a client’s advantage. Here are some of the circumstances when hiring a CPA is probably your best bet:

  • Side business – There are many opportunities for tax write-offs dealing with expenses and other issues. You might not know which write-offs can apply to your business. If your “side hustle” comprises short gigs or cash payments, you may be issued 1099s. You might benefit from getting expert advice throughout the year on how to prepare for filing, as well as doing the filing itself.
  • Savings or college investment goals – Are you planning to help your children go to college? There are several tax laws related to savings and investing that a CPA might be able to help you plan to make the most practical steps. For example, they can help you plan for investing so that it doesn’t negatively impact filing for your child’s FAFSA forms for college financial assistance.
  • You’re contacted by the IRS – you may be contacted by the IRS for any number of reasons, including overdue notices. Even small issues that seem easily handled could use the adept hand of a CPA to make sure you don’t trigger any concerns or unintentionally flag deeper probing. Your CPA will know what the IRS is looking for and can show you how to satisfy the requirements.
  • Retirement planning – There are a variety of ways to invest in your future retirement that could be quite complicated as the investment could interact with your taxes. A CPA can help clear up confusing details and help make your planning much more manageable.
  • Real estate and rental property – Avoid dealing with tricky deductions and potential penalties on your own. A CPA can help navigate laws and taxes involved in property investments.
  • Special investments – Special Investments can have confusing tax requirements and use confusing jargon. CPAs can help you understand the requirements and give you a better chance at accessing more favorable tax advantages.
  • Family changes and issues – When a family crisis or adjustment occurs, you will want to make sure you know how to navigate all the possible complications. Divorce can leave you with questions about the impact of joint filing and custody issues on your taxes. Adoption or adding a new member to your family has its own tax benefits. The death of a loved one can also bring up questions of inheritance and other areas that affect your tax status.

Myrick CPAs are well acquainted with a variety of tax challenges and personal financial situations that you may need help navigating. Contact us for a consultation today.