CPAs can help you develop tax strategies and plan for the future, considering factors such as retirement goals, estate planning, and minimizing tax liabilities.
Preparing taxes can be time-consuming, stressful, and confusing, especially if you have a busy schedule or complex financial affairs. Hiring a CPA allows you to delegate this task, saving you time and reducing stress.
And finally, in the unfortunate event of an audit, having a CPA who is familiar with your taxes can provide valuable guidance and representation.
Besides hiring a tax professional, you also have the option of using tax preparation software like TurboTax. You can even get a version for small business owners. The monetary investment in software like this is much smaller than the cost of a CPA, and you may qualify for a discount with a credit union membership or based on your yearly income.
Using software means you will most likely only have the option to e-file your taxes. You’ll need your W-2s, any 1099 forms, tax documents from all investments, and documents regarding interest you paid on things like student loans. It will take anywhere from one to several hours for you to complete your taxes, depending on your situation. The software will guide you through questions and form sections you may have missed if you filled out the paper form unaided.
When choosing a tax preparation option, consider the complexity of your tax situation, your comfort level in handling taxes yourself, and your budget. It is important to ensure that whichever option you choose, the individual or service provider is reputable and knowledgeable in tax matters.
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