Many taxpayers handle their own tax returns at the end of the year, if they don't have any type of complicated deductions or questions about income they need to report. However, it can be a mistake to assume that you can or should handle your own tax filing or use a generic software program on the computer when it comes tax time, as this can sometimes wind up costing you more money than you realize. Note when it pays to call an accountant rather than DIY your taxes.
1. When your income bracket has gone up
Getting a raise or a new job that pays better than your old job can be good, but it can also mean paying more taxes than ever before. If you have gotten a substantial raise or are earning much more money than you did last year, you would do well to hire an accountant. It may be time to itemize deductions so your tax bill is lower, or you may be overlooking deductions because of business travel or other expenses you didn't have with your old job or position. An accountant can help you find the best deductions possible.
2. When you make a major change in your life
If you have just had your first child this past year, adopted a child, got married, got divorced, or had any other major change in your life, it's good to consult with an accountant. These things will typically affect your tax bracket and your tax bill, and you may be eligible for deductions because of certain situations. If you've never had a child before or have never gotten divorced before, you may not be familiar with the tax deductions or costs associated with these and other such changes.
3. When you have secondary income or earnings
If you've gotten money because of spousal or child support, won a large amount in the lottery or while gambling at a casino, or inherited a large sum, you would do well to consult with an accountant. You may or may not be required to claim these things on your taxes, and if you are required to claim them, there may also be deductions you can claim to offset this income. For instance, if you won a large amount of money while gambling in a casino and are required to report it on your taxes, you may be allowed to deduct gambling losses you've had throughout the year. An accountant can tell you how these types of things affect you and advise you on the best way to report any such secondary income or earnings.
For more information, contact a company like Kamp Business Accountants.Share