Getting Help From a Tax Preparer: Why It’s Important and What to Expect
With tax season right around the corner, you may be wondering if you should try to do your taxes on your own or seek the assistance of a tax preparer. While doing your own taxes may save you money, it can also cost you if you make mistakes or miss a deduction. In this article, we’ll discuss the benefits of getting help from a tax preparer, what to expect during the process, and the latest updates on tax laws using government resources.
Benefits of Using a Tax Preparer
One of the biggest benefits of using a tax preparer is that they can save you time and frustration. Taxes can be complicated, and it can take hours to gather all the necessary documents and fill out the forms. A tax preparer can take care of this for you, ensuring that everything is completed accurately and on time.
Another advantage is that tax preparers are knowledgeable about the latest tax laws and regulations. Tax laws can change frequently, and it can be difficult for the average individual to keep up with these changes. A tax preparer can stay up-to-date and ensure that you’re taking advantage of all available deductions and tax credits.
Tax preparers can also offer helpful advice on how to lower your tax liability for the coming year. They can review your financial situation and suggest ways to reduce your tax bill, such as opening a retirement account or making charitable donations.
What to Expect When Working With a Tax Preparer
When working with a tax preparer, you’ll need to provide them with all the necessary information to complete your tax return accurately. This includes your W-2 forms from your employer, any 1099 forms from any freelance work you did, and any other relevant receipts or documentation of expenses.
Your tax preparer may also ask you questions about your financial situation to ensure that they’re maximizing your deductions. For example, they may ask about any large medical expenses or charitable donations you made during the year.
It’s essential to work with a tax preparer who is reputable and experienced. Look for someone who has a PTIN (Preparer Tax Identification Number), which is required by the IRS for anyone who prepares federal tax returns for compensation. You can check the IRS directory of tax preparers to ensure that your preparer has a PTIN and has not been disciplined by the IRS.
You should also ask about their fees upfront and what services are included. Some tax preparers charge a flat fee, while others charge an hourly rate. Be wary of any preparer who charges based on the size of your refund, as this may encourage them to exaggerate your deductions or overlook potential issues.
Latest Updates on Tax Laws
Tax laws can change frequently, and it’s essential to stay up-to-date on any changes that may affect your tax return. The IRS offers a wealth of resources on their website to help taxpayers stay informed.
One significant change that took effect for the 2020 tax year is the Coronavirus Aid, Relief, and Economic Security (CARES) Act. This law introduced several provisions to help individuals and businesses affected by the COVID-19 pandemic.
One of the most significant changes was the introduction of economic impact payments, also known as stimulus checks. These payments provided up to $1,200 per adult and $500 per child under the age of 17 to eligible individuals.
The CARES Act also allowed individuals to take penalty-free early withdrawals from retirement accounts if they were affected by the pandemic. Additionally, it allows individuals to deduct up to $300 in charitable donations on their tax returns, even if they don’t itemize their deductions.
Another change for the 2020 tax year is an increase in the standard deduction. For those filing as single, the standard deduction increased to $12,400, while married couples filing jointly saw an increase to $24,800.
Conclusion
Getting help from a tax preparer can save you time and frustration while ensuring that your tax return is accurate and takes advantage of all available deductions and credits. When working with a tax preparer, be sure to provide them with all necessary information and ask about their fees upfront. Also, stay informed about the latest tax laws and regulations to ensure that you’re taking advantage of all available benefits and deductions.
A tax preparer can be referred to in order to gain access to assistance with the task, as can at times be complex and difficult, of filling a tax returns form. In view of the difficulty which many Americans report encountering in the course of fulfilling their tax obligations under the government, tax preparers have been remarked upon as a popular and oft-used kind of tax service in the legal context of the United States.
In regard to the essential role which will be played by any tax preparer whom an individual happens to engage professionally, people should first make sure that the tax preparers whom they hire are professionally qualified and have sufficient expertise to deal with the various exigencies of tax form completion.
In terms of the extent to which tax preparers are referred to in the United States, as opposed to the number of U.S. citizens who fill out their tax forms as of their own accord, it was reported in a survey compiled during the 2007 tax period that 59.% of the tax returns submitted to the IRS in that year had been completed by tax preparers and not by the person to whom they pertained.
In light of the importance of tax preparers in the country, some U.S. state legislatures have passed laws into effect that require that an professionally active tax preparer first undergo the proper methods for licensing. In some states, however, a tax preparer need only be licensed for state tax-related forms.
