Every year tax season rolls around, and every year it is a source of stress for millions of Americans of all walks of life. Getting the professional help that a tax consultant offers can help make this process smooth and stress-free. Read on and we’ll explain some of the benefits you can get by hiring a consultant to handle your taxes.
Most Important Reasons to Get a Tax Consultant in 2022
Save Time and Effort
Perhaps the biggest reason that people dread tax season so much is that they simply don’t have the time and effort to invest in taking care of their taxes. After all, so many of us already lead such busy lives where free time is at a premium. Finding time to put aside for taking care of your taxes can seem like a daunting task for many people.
The assistance that a tax consultant offers can help you handle your taxes quickly and efficiently so that you can get back to doing the things you love in life. Not only will the process of filing your taxes itself go more quickly and painlessly, but you also won’t have to spend time going back over your taxes to make sure you didn’t make any mistakes. That extra scrutiny will already be handled by your consultant.
Claim All of Your Deductions
Making sure that you claim every deduction that you’re eligible for is crucial for getting the best result when filing your taxes. Deductions make more of your income for that year nontaxable, either increasing the refund that you’re due or reducing the amount that you owe to the local, state, or federal government.
Along with the most-obvious standard deduction, you can also claim deductions for business-related expenses that you may have had over the past year. Another common deduction is the interest paid on any student loans over the course of that year, as well as claiming deductions for the depreciation of any assets that you own over that time period.
Find Tax Credits You May Have Missed
Just like there may be some deductions that you might have missed, you may also not be claiming every tax credit available to you either. Similar to deductions, a tax credit reduces the amount of your income that is considered taxable. The difference is that tax credits are incentives whereas deductions tend to be for things you already paid for.
There are many types of tax credits, making a professional who knows how to recognize what you might be eligible for a valuable resource. There are tax credits designed to provide relief for low-income households, for example. There are also tax credits that incentivize using renewable energy sources.
Avoid an IRS Audit
One of the greatest fears that people have when doing their taxes is that they’ll do something wrong and end up with that dreaded letter from the IRS telling them that they’re being audited. The good news is that remarkably few tax filings result in an audit; the chances are roughly one in 333. However, you don’t want to leave anything to chance and risk going through all the stress that an IRS audit can bring.
Avoid this unnecessary source of stress in your life by having a professional assist you with filing your taxes. You can rest assured that your taxes are being handled correctly. You won’t have to be nervous about an unexpected notice from the IRS showing up and causing you any unnecessary stress.
Check on Previous Returns
Help with the current tax year isn’t all you’ll get when you hire a consultant to assist you with your filing. You’ll also be able to go back and make sure that your previous tax filings were also handled correctly. The professional help you have at your disposal will let you go over every detail of your filings with a fine-toothed comb, ensuring that no mistakes were made in previous years.
If there were any deductions or credits that were missed in previous years’ filings, these can lead to a refund that can earn you some extra money. Tax refunds can be claimed for up to three years, so you may have money waiting for you if any mistakes were made on your recent tax filings. Professional help can ensure that you get every dollar that you’re owed.
Gain a Better Understanding of the Tax Code
There’s no question that the tax code is endlessly detailed and difficult to understand. This complexity is what makes people feel so intimidated when attempting to do their own taxes. There seems to be an impossible number of small caveats and details that makes fully understanding taxes a daunting task even for intelligent people. A professional can help to alleviate this confusion and provide some clarity.
Your consultant can address any questions or concerns you have about the tax filing process. They can clarify any misunderstandings you have to give you a better grasp on this essential part of life. You’ll feel more confident with your tax filing because you’ll better understand the details of what exactly was done.
Help with Unique Tax Situations
There are certain situations that may add an extra level of complexity to filing your taxes. For example, you may have started a business during the last year. Business owners can claim a number of expenses related to running their business on their taxes. A skilled professional can help ensure that you write off every business expense that you can.
More and more people are finding side-hustles to supplement their regular income, which is another situation that impacts how you should file your taxes. Income from a side-hustle is handled differently than your wages from a regular-wage job might be. Like business owners, those working a side-hustle can deduct certain expenses related to their work, and a professional can help you identify all of these opportunities to help alleviate your tax burden.
Marital Status Has Changed
Did you get married or divorced over the course of 2022? Either of these events may change the way you should file your taxes. For newly married couples, your tax consultant can help you determine whether you should file jointly or continue filing separately for the time being. Because every couple’s financial situation is unique, getting professional insight into this issue can be an invaluable resource.
People who went through a divorce over the course of the last year can also benefit from the help that a tax professional can provide. Similar to recently married couples, a tax consultant can help you determine whether it’s best to start filing separately or to continue filing jointly for the time being. They can also ensure that any alimony paid is handled correctly in your tax filings.
Achieve Peace of Mind
While there are plenty of tangible benefits to working with a tax professional, there is also the emotional weight lifted off your shoulders that comes as a result of knowing your taxes were handled correctly. You’ll have peace of mind knowing that you don’t have to worry about a letter from the IRS arriving about any potential issues.
In need of assistance with your tax situation? Our team of expert consultants can help make filing your taxes accurate, efficient, and easy. Contact Geaux Tax Resolution LLC today and let us help you with the IRS!