February has officially arrived, which means that tax season is just around the corner. If you’ve decided to stop filing your own taxes because you want to seek out the advice and expertise of a professional, you may be weighing the pros and cons of hiring a CPA. Below are just a few of the reasons you should make that call.
The tax laws are constantly changing
If you’re like most people, you haven’t been keeping up with recent changes in tax law. And unless you’ve been paying close attention, it’s likely you’ll miss something that’s important. Working with a CPA will ensure the person who is preparing your taxes not only knows what’s changed, they can also help you understand how recent changes can impact how much you owe (or how much you’ll get back.)
Working with a CPA can help ward off an audit
Do you and your spouse make more than $200,000 a year? If so, you shouldn’t be filing your taxes yourself. Individuals in this bracket are far more likely to be audited than filers that earn less than that. Additionally, if you take a lot of deductions, your risk of being audited goes up. Do you file a Schedule C? Are you taking significant deductions for charitable contributions? If so, it’s best to hire a professional. Not only will they understand how to file your taxes properly, they’ll be in your corner to help if you do get audited.
You have a sizable estate
If you plan on leaving a large financial gift to your heirs, a CPA can help you with estate planning. In addition to helping reduce the taxes that will be owed on your estate, they can advise you about the various tax impacts that may be faced by your heirs. Further, a CPA can help you understand how to set up a trust (and the associated tax benefits.)
If you’d like to learn more about the benefits of hiring a CPA, or you’d like to learn more about the differences associated with working with a CPA versus an accountant, we can help. Each member of the Hughes, Snell & Co., P.A. team is committed to providing our clients with the expertise needed to conquer the intricacies of your personal finances. Are you ready to get started? Call our office today to schedule a virtual appointment. We look forward to hearing from you.