Is Filing Your Own Taxes a Good Idea?
No single day of the year is dreaded quite like Tax Day. Doing your tax returns can be a nightmare, especially if you’re working without any help. Hiring an accountant can take much of this stress off your shoulders, and might even benefit you in unexpected ways.
Tricky Tax Laws Constantly Cause Mistakes
The main problem the average person has filing their taxes is in the obscurity of the tax code. Whether you’re filing a personal income tax or on behalf of your business, you may find that the federal and state taxes are calculated differently. Sometimes, they can even appear to contradict one another. On tax forms, seemingly every term has a highly specific definition, and every clause has one or more exceptions. For these reasons, some sources speculate that a majority of taxpayers currently file their returns with help from a tax preparation long island ny service.
While everyone agrees how easy it is to fill out your tax forms incorrectly, this doesn’t stop bad things from happening to you when you do. At best, you could lose out on certain entitlements. At worst, if the government believes you’re trying to defraud them, you could be subject to hefty fines, audits of your business, or even criminal penalties. Professional tax preparers who are well-versed in tax law can ensure all relevant forms are properly completed.
You Deserve a Break
Because of the law’s complexity, numerous exemptions, deductions, and tax credits are available at the state and federal levels. For example, self-employed individuals are entitled to most of the same work-related deductions as any other business. This can include certain state and federal corporate tax provisions if you are incorporated. Certified tax accountants will be familiar with the system and can point out any tax breaks for which you are eligible.
Doing your taxes doesn’t have to be so tedious and confusing. Hiring a tax consultant may be the best decision you make all year.