What’s mandatory yet the most avoided task? Taxes!
We know it’s all fun and games until you have to spend more than 8 hours a day just to understand what exactly is going on. There are numerous documents to unfold and various form filings to do.
Your time can be worth-wasting if you manage to file your taxes accurately at the end of the day.
However, the case can be different if you have a complex situation (you're on your build credit and improve credit score journey amid bad financial health).
So, what should you do? Get expert advice and still do it yourself? Or, hire a pro slash tax specialist to do your taxes for you? Let’s find answers!
1. What is a tax accountant?
Tax accountants specialize in the tax laws, policies, rules, and regulations that govern the preparation and computation of state, federal, city, or local taxes.
In addition, tax accountants offer people and organizations various tax-related assistance services, including the preparation and filing of tax returns.
- Assistance for legal tax lawsuits or disputes
- Right tax planning for state/federal income taxes
In simple words, tax professionals or specialists help people deal with all their tax matters in the form of advice or actual filing.
2. Should you do your own taxes? 
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Self-filing taxes highly depends on your situation. So, if you only have a simple tax return, this might be an excellent way to save money. However, you won’t have any additional expert advice, support, or guidance if you don’t understand something related to your taxes. You can do your taxes yourself if:
- Your financial situation hasn’t evolved much in the last year
- Your relationship status is single, and you were not involved in any divorce or separation case
- Either you’re self-employed or worked for a single employer for the entire year
Of course, there can be other concerns, but it all depends on your current tax situation.
3. Who needs a tax accountant?If you’re dealing with a complex tax situation, endless financial documents, and multiple tax forms, you need a tax accountant. Here are some cases:
- Property Buyer/Seller: Mortgage interest, loan closing, capital gain, and deductions are different for real estate. A tax professional can help you itemize everything.
- Business Owner: You can get help for business tax deductions, breaks, preparations, planning, etc.
- Dependents: A legal tax person can ensure you’re using the proper tax credits.
- Tax debtor: A tax specialist can give you a better idea of your previous unpaid taxes.
Or, if your life is going through a significant change like marriage, divorce, co-parenting after separation, or multiple jobs, professional tax advice will be beneficial for you.
4. Why hire a tax pro?Hiring a tax accountant ensures that you get all the benefits of tax credits, deductions, and breaks you’re eligible for. Moreover, a professional may provide additional financial planning and tax advice (GST/HST).
You never know; you might also get help in filing the next year's tax return.
5. When to hire a tax specialist?It’s your responsibility to track your income, tax-deductible expenses and estimate your tax payments. However, if you’re bad at calculating your taxes or understanding how accounting and tax expenses work, it’s time to hire a tax specialist. And, it’s better to do it early so as not to miss your tax deadline.
- If your business needs to have an audited financial report
- If you’re currently dealing with or previously dealt with compliance issues
Whenever you think you can’t handle the tax preparation anymore, immediately seek help from a professional.
6. How much should I pay a tax accountant to do my taxes?
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The exact amount may vary from person to person. But, in general, hiring an accountant can cost you from $100-$550, depending on the complexity of your tax situation.
Pro-Tip: The earlier you hire, the higher the discount you desire!
You might get expensive rates if you look for an accountant closer to the tax deadline. So, start your preparation early to get the best possible price.
7. What is the difference between a tax accountant and a tax broker?Tax brokers, sometimes known as tax preparers, specialize in tax preparation, filing tax returns, and other related papers.
However, tax accountants take a big picture approach and work with their clients and employers as long-term strategic partners or planners.
8. Are there different types of tax accountants?As per elawtalk, there are almost 13 different types of accountants, each with specific financial expertise.
Certain accountants hold special tax licenses to help citizens with their taxes. For example:
- Certified Public Accountant: The area of working for a CPA is wide. It includes tax preparation, auditing, financial planning, advice, etc.
- Tax Agents: Also known as enrolled agents, their responsibility is to file taxes and handle all tax payment documents (to IRS) for an individual.
- Consultant: They can provide expert advice and suggestions for better financial planning to prepare for the taxes correctly.
- Tax Accountants: They specialize specifically in everything related to taxes. In addition, they assist clients in taxation matters (preparation, filing, tax returns, tax debts, etc.)
Every professional's pricing rates and services might vary depending on their experience and expertise.
Moreover, your tax documents and financial complexity will also affect the tax preparation cost.
9. What documents do you need to share with a tax professional?
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You must provide your tax accountant with everything that can be needed to claim your tax return and file your taxes correctly.
Basically, give all the income and expense documents you would personally use to file your taxes yourself. Here is a checklist of essential documents:
- Income slips (from all resources)
- Donation receipts
- Property statements
- Loan reports
- Mortgage or lease documents
- Personal or professional rental data
- Additional interest files
- Study or tuition fee slips
- Spouse or child support receipts
Provide all the documentation proof of your income, expenses, and everything that’s tax-deductible.
10. What are the pros of hiring a tax specialist?If you stress about tax filing and return alone, hiring a professional can ease your frustration. Here are some tax pro advantages you can get from your consultant:
- Minimize Errors: A professional can double-check all your essential documents to ensure you are filing the right way to get the maximum out of your tax return.
- Money-Saving Opportunities: A CPA can keep track of your income and expenses, thus guiding you on effective strategies. He/she can help you with money-saving tips in multiple aspects.
- Accurate Filing: The amount of your tax return depends entirely on your tax filing. So, if you miss some important details, it will tremendously affect your tax return. But, again, a tax accountant will ensure you get the best possible return.
Hiring a professional can save you time, effort, and stress. All you have to do is spend a few hours collecting and organizing your documents.
Then, send it to the accountant, and you’re done with your taxes (well, for now :P)!
11. How to choose the right accountant? 
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You need to be careful with whom you trust your tax filing because, in the end, it’s you who’ll be responsible for the wrong information and tax debt.
So, you must do your research in choosing the right tax accountant. Here are some questions to help you out:
- What’s your expertise?
- For how long have you been helping people with their taxes?
- Did you get any training for tax preparation?
- Do you provide services for specific taxation matters?
- What’s your availability if you need an early appointment?
- Will you provide regular updates on my tax filing and return status?
- What’s your charging rate? Can I get a discount?
It’s wise to ask and know everything beforehand to avoid conflict during the process.
12. How to find the best tax accountant?It can become difficult to look for the right accountant for your tax situation with various options available. Here are some tips:
- Ask Family & Friends: Talk to your friends and relatives about how they will file taxes this year.
- Search It Up: You can look online for affordable accountants that provide services around your area.
Remember to connect with a trusted person!
Bottom Line
Doing your taxes personally can be quite complicated. But, of course, it can be handled if your income stream is simple.
However, if you have multiple investments, rental payments, or business dealing, things can quickly get messy. And, you who wanted to avoid paying extra money ended up spending way more than you intended.
So, is hiring expensive tax consultants worth your money? Should you get professional services to file your taxes? What are the odds of it?
Find answers to these and other questions in this one guide!
