You may be staring at a pile of W2 or 1099 forms, mortgage interest statements, health savings account statements, and other typical tax documents with feelings of panic and frustration. While you want to get your taxes done as early as possible, you feel too overwhelmed to start. The good news is that hiring a professional Certified Public Accountant (CPA) to prepare your personal, business, or both tax returns can save you time and money. Not only can you just hand off your stack of paperwork to your accountant, but you can also relax and feel assured of the accuracy of your tax return. Submitting an error-free return means no throwing money away on penalties or late fees. Hiring a professional to prepare your taxes is definitely a smart move.
Did You Have Any Status Changes in 2020?
One thing that can make it easier to decide if you should hire a professional to complete your taxes is to consider any changes from the past year. For example, did you get married, divorced, welcome a new baby, or have a dependent you claimed in previous years age out?
Big changes like these affect your filing status, increasing your frustration as you determine how to file this year. The tax professionals Tostrud & Temp, S.C. have years of experience filing many versions of tax returns and know just how to file according to your taxpayer status and exemptions.
Your taxes will be different this year if you’re a business owner who took out a Paycheck Protection Program (PPP) loan, lost income, closed your business, or paid for new safety equipment the government required you to have in light of the COVID-19 pandemic. Government regulations regarding the pandemic and business finances change quickly, making it challenging for you to stay up to date.
Since we commit to ongoing education regarding issues that could impact client tax returns, you can depend on your CPA at Tostrud & Temp, S.C. to prepare and file your business tax return correctly.
Itemizing Deductions
Signed into law by President Donald Trump in 2017, the Tax Cuts and Jobs Act increased the standard deduction taxpayers could claim on their returns. Fewer people now itemize their deductions because of this legislation.
However, you may want to itemize deductions rather than take the standard deduction if you donate a considerable amount of money to charity, have extensive medical costs, or have large mortgage interest deductions. The process of itemizing deductions can be complex, which means that many people who attempt it on their own make mistakes. A CPA has advanced training and financial knowledge to avoid this common problem.
Professional Tax Preparation Works Best for Complicated Tax Situations
Do any of these situations apply to you?
- Business owner
- Desire to shield income from taxes as much as possible by saving for retirement or health emergencies
- Own rental properties
- Have complicated investment statements
- High net worth individual or married couple with significant assets.
- Independent contractor or self-employed
- You alternate claiming dependents with a former spouse
If so, it’s important to understand these situations can complicate tax returns in a hurry. As experienced CPAs in La Crosse, Wisconsin, the team at Tostrud & Temp, S.C. is available to prepare and file your tax returns in an expert and efficient manner. Please contact us to schedule an appointment or learn more about our other financial services.