Dreading tax season? Numbers not your forte? Don't worry, you're not alone.
But even if your tax situation seems simple, there are times when hiring an accountant can save you time and money and lower your financial stress.
From navigating complex tax codes to maximizing your return, a professional can make a big difference. Here are 14 signs you should hire an accountant for your taxes:
If you’re over 50, take advantage of massive discounts and financial resources
Over 50? Join AARP today — because if you’re not a member you could be missing out on huge perks. When you start your membership today, you can get discounts on things like travel, meal deliveries, eyeglasses, prescriptions that aren’t covered by insurance and more.
How to become a member today:
- Go here, select your free gift, and click “Join Today”
- Create your account (important!) by answering a few simple questions
- Start enjoying your discounts and perks!
Important: Start your membership by creating an account here and filling in all of the information (Do not skip this step!) Doing so will allow you to take up 25% off your AARP membership, making it just $12 per year with auto-renewal.
You don’t have the time
Taxes take time to prepare. According to the IRS, individual taxpayers spend around 13 hours and $240 to prepare a single return. That jumps to 82 hours and $2,900 for small businesses.
If you simply don’t have the time for that, hiring a tax pro might be the right move — just make sure you hire someone with the right qualifications.
You’re being audited
Being audited is arguably the scariest thing that can happen to a person or business when it comes to the IRS. While audits might be rare for most of us, they often require professional accounting assistance.
Audits involve meticulous paperwork, tight deadlines, and heightened stress where every detail is crucial — that includes years of comprehensive records. These are excellent reasons to hire an accountant.
You’re self-employed
Taxes are more complicated for self-employed people because you don’t receive a simple W-2 at the end of the year.
That includes paying a self-employment tax in addition to the regular income tax. You’ll also need to figure out profits and losses.
Hiring an accountant can save you time otherwise better spent on your business. They may also be able to save you money through write-offs you’re unaware of.
Resolve $10,000 or more of your debt
Credit card debt is suffocating. It constantly weighs on your mind and controls every choice you make. You can end up emotionally and even physically drained from it. And even though you make regular payments, it feels like you can never make any progress because of the interest.
National Debt Relief could help you resolve your credit card debt with an affordable plan that works for you. Just tell them your situation, then find out your debt relief options.1
How to get National Debt Relief to help you resolve your debt: Sign up for a free debt assessment here. (Do not skip this step!) By signing up for a free assessment, National Debt Relief can assist you in settling your debt, but only if you schedule the assessment.
You got married
If you got married since you last filed taxes, congratulations! But it also means your filing status has changed.
The IRS recommends that newlyweds complete a few things on their checklist to ensure accurate filings. That includes changing their withholdings on their employer's or employers’ W-4 forms. An accountant can help with this.
You had a baby or adopted
New parents have plenty to be excited about, but the cost of raising a child and how their taxes are impacted probably aren’t among them.
There’s good news, though. The IRS has a few tax breaks that can help: the Child Tax Credit, the Child and Dependent Care Credit, the Adoption Tax Credit, and the Earned Income Tax Credit. If all of those sound like too much to deal with, an accountant can help.
Trending Stories
You got divorced
Divorce and separation impact your tax filing, particularly your filing status, depending on your situation at the end of the year.
For example, if you were separated but not legally separated or divorced by the year’s end, the IRS says you’ll be considered married when it comes to filing. The opposite is also true, and you’ll have to file as single. This is when hiring an accountant can come in handy.
You bought or sold a home
Buying and selling property can have many benefits — particularly in the form of deductions and exclusions.
According to the IRS, if you sold your home for a profit, you can exclude $250,000 from your income (if filing single) or $500,000 (filing jointly). But you have to qualify for that exclusion.
There may also be other deductions tucked away in the closing statement you miss out on if you don’t hire an accountant.
You have rental property or real estate investments
Hiring a tax pro is probably a good idea if you’re new to real estate investing, including owning rental property or other investments.
There are specific tax laws about property issues like depreciation, asset management, and deductions that require expertise you might not have. Tax pros can ensure you take advantage of credits and deductions and prevent costly filing errors.
You have many financial accounts
The more complicated your financial situation, the wiser it is to hire an accountant.
Hiring a professional can simplify the process if managing multiple financial accounts and handling various tax forms feels overwhelming.
Sorting through investment income from several sources can be time-consuming and frustrating. A tax professional's expertise and specialized software can streamline the reporting process.
Earn cash back on everyday purchases with this rare account
Want to earn cash back on your everyday purchases without using a credit card? With the Discover®️ Cashback Debit Checking account (member FDIC), you can earn 1% cash back on up to $3,000 in debit card purchases each month!2
With no credit check to apply and no monthly fees to worry about, you can earn nearly passive income on purchases you’re making anyway — up to an extra $360 a year!
This rare checking account has other great perks too, like access to your paycheck up to 2 days early with Early Pay, no minimum deposit or monthly balance requirements, over 60K fee-free ATMs, and the ability to add cash to your account at Walmart stores nationwide.
Don’t leave money on the table — it only takes minutes to apply and it won’t impact your credit score.
You earn a lot
It’s common knowledge that the more you make, the more heavily the IRS taxes your income. The real tipping point comes at incomes over $231,250 for individuals, where you’ll face a whopping 35% income tax. That’s a big tax bill.
Strategic income structuring, especially for the self-employed, can leverage deductions and potentially lower your taxable income. A tax advisor can help sort this out for you and find tax breaks.
You think you’re paying too much in taxes
Nobody enjoys paying taxes, but there may be times when the amount you’re paying feels objectively wrong.
In those cases, it’s a good idea to seek guidance from a knowledgeable tax advisor who understands your specific circumstances, including business and local tax laws.
Together, you can explore legal avenues, such as leveraging tax deductions and credits, to reduce your tax liability.
You started a business
If you just started a business, it’s a good idea to have an accountant on board, especially for your first return.
Tax pros help you claim rightful deductions and avoid the wrong expense write-offs. There are also many tax credits to be mindful of, including things like the Work Opportunity Credit and the Disabled Access Credit.
Navigating the intricacies of business tax law can be daunting without professional insight.
You don’t understand business tax law
Managing your personal finances or even filing your own return is great, but that’s not the same as business tax expertise.
Navigating these complexities and myriad laws and regulations requires time and effort, which may distract you from your business. Hiring an expert lets you leverage their skills while taking a load off your back so you can focus on your company.
You work side gigs
It’s common for people to work side gigs these days. Maybe it’s a key part of your income, or you just need to supplement your income.
Whatever the reason, receiving Form 1099-MISC can make tax time more complicated. If you’re unfamiliar with it, companies use Form 1099 to track contractor payments.
Newcomers can fall into a trap of not making estimated tax payments or tracking deductible gig-related expenses. A tax professional can help.
Bottom line
Accounting is an intricate, complex process. If you don’t know what you’re doing, it can make tax season worse.
Whether you’re encountering financial complexities or major life changes, professional help can help prepare you financially.
That’s especially true if the thought of crunching numbers and delving into deductions induces anxiety. It might be time to entrust the preparation to a professional.
Lucrative, Flat-Rate Cash Rewards
FinanceBuzz writers and editors score cards based on a number of objective features as well as our expert editorial assessment. Our partners do not influence how we rate products.
Wells Fargo Active Cash® Card
Current Offer
$200 cash rewards bonus after spending $500 in purchases in the first 3 months
Annual Fee
$0
Rewards Rate
Earn unlimited 2% cash rewards on purchases
Benefits
- Low spend threshold for its welcome offer — $200 cash rewards bonus after spending $500 in purchases in the first 3 months
- Cell phone protection benefit (subject to a $25 deductible)
- Can redeem rewards at an ATM for literal cash
Drawbacks
- Foreign transaction fee of 3%
- No bonus categories
- Select “Apply Now” to take advantage of this specific offer and learn more about product features, terms and conditions.
- Earn a $200 cash rewards bonus after spending $500 in purchases in the first 3 months.
- Earn unlimited 2% cash rewards on purchases.
- 0% intro APR for 12 months from account opening on purchases and qualifying balance transfers. 19.74%, 24.74%, or 29.74% Variable APR thereafter; balance transfers made within 120 days qualify for the intro rate and fee of 3% then a BT fee of up to 5%, min: $5.
- $0 annual fee.
- No categories to track or remember and cash rewards don’t expire as long as your account remains open.
- Find tickets to top sports and entertainment events, book travel, make dinner reservations and more with your complimentary 24/7 Visa Signature® Concierge.
- Up to $600 of cell phone protection against damage or theft. Subject to a $25 deductible.
Subscribe Today
Want extra-cash moves to come right to you?
Stop browsing endlessly. Get proven ways to earn pocket money, help cover rent, and crush your debt — sent to your inbox daily.
Author Details