Just the thought that a professional is handling your taxes reduces stress! Making mistakes can be very costly. In terms of missed deductions or triggering an IRS letter or audit; we here at Flat Top Bookkeeping can help eliminate errors and ensure your returns are prepared correctly. While you benefit with money-saving tax planning.
Filing your own taxes can be incredibly time-consuming
The IRS estimated that the average person spent 24.2 hours completing their tax returns. For those who had to file a Schedule C for business or a Schedule E for rental properties, this number quickly jumped to 52.2 hours. To put this number into perspective, if you assume that the average person’s time is worth $25 an hour, that is a cost of up to $1,305 dollars. Money and time that could be saved or invested. A tax professional will be able to work quickly and efficiently. Saving you not only time but an unavoidable headache that is sure to follow.
Tax preparation fees can be deductible
Difficulty. Filing a tax return cannot only be complicated and confusing but is also constantly changing. The Federal tax code is adjusted each year making it nearly impossible for the average taxpayer to be fully aware of all changes that may apply to them. If you must claim any of the following, it is especially advised that you speak with a tax professional as these scenarios will instantly complicate your tax return:
- You own, sold or started a business
- Have many investment losses or gains
- Capital asset transactions
- Real estate transactions
- Change in marital status
- Your income and residence are not in the same state or country
- Trust Fund Transactions
- Completing a Schedule for Self-Employment Income
Find deductions or credits that may have otherwise been missed
TurboTax is not bulletproof in finding every deduction and credit relevant to your situation. In fact, for taxpayers with complicated situations, it is recommended you use a professional tax preparer. Even the CEO of Intuit (the maker of TurboTax), Brad Smith, used an accountant for the last two years because he had transactions involving trusts and other complex activities to report.
In the unlikely event, one is audited, a tax professional can work with you to organize any necessary paperwork. Using a tax professional, that can represent you in front of the IRS, and who also prepared your tax return, can help streamline things with an audit. Even though only 1% of taxpayers are audited each year
Regardless of how confident you are on your ability to file your taxes, mistakes are inevitable. Many professional tax preparers use software as well and they can double check things themselves.
This point speaks for itself as there are few who can deny the appeal in avoiding the stress and hassle of filing taxes.
There are plenty of changes for the tax year 2018, let Flat Top Bookkeeping assist in figuring out the tax laws so you do not have to. Happy filing!