Are you unsure if you need a personal tax advisor and not sure how to figure it out?
We feel your pain! But don’t worry; you’re not alone. Many people are unsure of when they should seek professional help.
But don’t worry, we’re here to help. This article outlines five signs that you might need a tax advisor. Once you’ve read through the five signs, you’ll have a much clearer picture of what you require and what to do next.
Read on to get the lowdown.
1. You Need a Personal Tax Advisor if You’re a High Income Earner
If your income from all sources is more than $150,000, you should get help from a tax professional. This is because your taxes will be higher if you make more than $150,000.
You might have to pay thousands of dollars in extra taxes, so it’s vital to get professional advice, and this is where WealthAbility can help.
2. You Own Rental Property or Other Investment Properties
If you have rental properties, stocks, mutual funds, or other investments, you should talk to a tax professional. Tax professionals usually don’t cost much more than the value of the services they provide.
But don’t forget to account for this cost when deciding if hiring a professional tax consultant is worth it for you.
3. Your Filing Status Isn’t Single or Married Filing Jointly
If you are married and file taxes together with your spouse, there are some things that the IRS software will do for you automatically. This applies if your filing status is anything other than Single or Married Filing Jointly.
It is also a good idea to get help from an expert professional tax advisor to ensure you complete the correct forms in the proper order.
4. You Have a Complex Business, Rental, or Investment Portfolio
If you make more than $150,000 or your income comes from investments, you have a more complicated tax situation. In many cases, you can use an online program from the IRS for free to figure out what deductions you can take.
But it’s still worth talking to a financial advisor to check what is available to you.
5. You’re Self-Employed
Most employers tell you how much to have withheld from your paycheck each month, so you don’t have to pay a lot of taxes at the end of the year. This makes hiring a tax professional less necessary.
If you are self-employed, it is a good idea to hire someone to help you file your federal and state tax returns. This will make it easier for you to be aware of what you can expense and what you can’t, correct standard mileage rate to use for travel and appropriately sized deductions for your home office.
All this will save you potential headache and likely save you some money as well.
Are Taxes Weighing on Your Mind?
If you are reading this post, you’re likely thinking about your taxes. As the year ends and tax season is coming, it might be a good time to think about if you need professional help to file your taxes.
The information in this post should help you understand if a personal tax advisor can help you. If you’re still unsure, don’t hesitate to reach out to a local professional for help.
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